The
“We had a mixed performance in the first quarter, with civil delivering results in line with our view of strong annual growth and increased market share momentum. Defence results were disappointing, however, coming in very well short of our expectations," CEO
Two charges totalling
“I'm confident that there's no more negative surprises like this one in our backlog," he said.
The company has been grappling with labour constraints across all three of its segments, but staff shortages in its defence wing in particular meant fewer billable hours and less efficient work, he said.
"Supply chain challenges were also more severe than anticipated, which pressured schedules. We also experienced delays on a few key orders we were expecting to commence work on in the quarter."
However, the company tacked on
The global shortage of semiconductors has weighed on CAE's three divisions, particularly its health-care business, Parent said.
"Overall we've managed it pretty well," he qualified, adding that the shortages are not limited to chips, with delivery times more than doubled for some parts.
"Obviously that wreaks havoc to schedules. So in order for us to maintain schedules we have to do all kinds of things like, for example, paying expedite charges for parts, we have to conduct overtime, we have to conduct out-of-sequence work, which introduces all kinds of inefficiencies."
On Wednesday, CAE reported that revenue jumped 24 per cent to
On an adjusted basis, earnings fell 68 per cent to
Net income attributable to equity holders in the quarter ended
This report by
Companies in this story: (TSX:CAE)
© 2022 The Canadian Press. All rights reserved., source