The Successful Investor Hotline – Friday, August 15, 2014

Article Excerpt

CAE INC. $13.45, Toronto symbol CAE, plans to sell its mining operations, which make simulators for training workers to operate underground trucks, loaders and drills. This business supplies just 2% of the company’s revenue. The mining operations were part of CAE’s New Core Markets division, which applies the company’s flight simulator expertise to other industries. This division, now called Healthcare, will focus on medical-simulation products, such as mannequins for training nurses and medical students. In its fiscal 2015 first quarter, which ended June 30, 2014, CAE’s earnings from ongoing operations fell 2.0%, to $43.6 million from $44.5 million a year earlier. Earnings per share were unchanged at $0.17, missing the consensus estimate of $0.19. Lower earnings from the company’s military-related businesses offset strong gains from its commercial division. Revenue rose 1.2%, to $526.2 million from $520.1 million. CAE ended the quarter with an order backlog of $4.9 billion, which is equal to 2.3 years’ worth of revenue. The company has also raised its quarterly…