Montreal-based CAE reported net income of $3.7 million in the first quarter of its fiscal 2023, down 92% from earnings in the prior-year period.
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This corresponds to diluted earnings per share of 1 cent for the beginning of the year compared to 16 cents a year earlier.
However, income from ordinary operations increased to $933.3 million for the quarter, compared to $752.7 million a year earlier.
“Our results were mixed in the first quarter, with the commercial business delivering results in line with our vision of strong annual growth, while the defense business remained well below our expectations due to separate program-related charges and near-term roadblocks at the very beginning of this multi-year growth journey,” CAE President and CEO Marc Parent said in a press release on Wednesday.
Orders totaled over $1 billion and a record backlog of $10 billion.
“We have lowered our forecast for the current year. In fact, we now expect the segment’s consolidated adjusted operating income to increase about 25% to reflect expenses related to two programs in the United States that have already been incurred in the defense segment and to reflect what we are currently doing across the segment are experiencing industry, namely supply chain pressures, labor shortages and the slowdown in defense orders,” added Mr. Parent.