CAE Isn't Losing Clients in Its Network Optimization Efforts

Dow Jones
Aug 13
 

11:50 ET--CAE's network optimization plan is progressing, and loss is minimal. National Bank of Canada analyst Cameron Doerksen notes in a report that the plan will see the removal of 10% of full flight simulators as well as the relocation of more than a dozen others, as well as the closing of 4-6 training centers. "Importantly, based on customer discussions so far, CAE expects to retain almost all customers impacted by training centre closures with revenue attrition at less than 1%," he says. At the same time, the flight simulator company also is making progress on divesting its noncore businesses, which represent a total of 8% of the company's revenue and "expects the proceeds from potential divestitures will more than fully fund the costs related to the transformation program." Shares are down 4.1% to C$37.02.

 

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