CAE Q1 Profit Down, Hikes Dividend; Mining To Be Divested - Quick Facts

(RTTNews) - Canadian aviation-training and simulation products provider CAE, Inc. (CAE, CAE.TO) reported that net income attributable to equity holders of the company for the first quarter ended June 30, 2014 decreased to C$41.8 million from the prior year's C$45.6 million, with earnings per share declining to C$0.16 from C$0.18 in the previous year.

Analysts polled by Thomson Reuters expected the company to report earnings of C$0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Net income from continuing operations attributable to equity holders was C$43.8 million and C$0.17 per share, compared to C$44.7 million and 0.17 per share in the first quarter last year.

But, revenue for the quarter grew to C$526.2 million, from C$520.1 million in the first quarter last year. Wall Street expected revenues of C$553.29 million for the quarter.

A strategic review of New Core Markets reaffirmed CAE's conviction in Healthcare and led to a process to divest Mining. The company noted that it will now focus capital and resources on its three remaining core business units: Civil Simulation and Training (Civil); Defence and Security (Defence); and Healthcare.

"The growth in our first quarter operating results came entirely from Civil, which saw operating income increase by 32% over last year..... I am pleased to report that CAE's Board of Directors has today approved a C$0.01 increase to CAE's quarterly dividend, which becomes C$0.07 per share, effective September 30, 2014...... As in the last few years, we expect a stronger performance in the second half and solid growth for the year as a whole," said Marc Parent, CAE's President and Chief Executive Officer.

CAE noted that it will pay a dividend of C$0.07 per share effective September 30, 2014 to shareholders of record at the close of business on September 15, 2014.