CAE's defence business takes impairment charge, expects Q4 loss

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Preliminary Results News

CAE Inc.,Defence Business,Fourth Quarter

MONTREAL — CAE Inc. says it expects to report a loss attributable to equity holders of $504.7 million in its fourth quarter, due to one-time charges related ...

MONTREAL — CAE Inc. says it expects to report a loss attributable to equity holders of $504.7 million in its fourth quarter, due to one-time charges related to its defence business.

CAE said its fourth quarter included a $568.0-million non-cash impairment of defence goodwill and $90.3 million in unfavourable defence contract profit adjustments. It also recorded a $35.7-million impairment of related technology and other non-financial assets, which are principally related to legacy contracts.

CAE says it will provide more detail when it releases its full results on May 27 after financial markets close. "The impairments and the accelerated risk recognition on the legacy contracts are a disappointing but necessary step to account for the programmatic risks we previously identified and provide a clearer path to margin improvement amid compelling secular trends for defence."Seeking a reliable income stream for your TFSA? Consider this sustainable high-yielding dividend payer.

 

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