MONTREAL – CAE Inc. announced an increase in its dividend Wednesday after the flight training and simulator company reported higher net income despite a drop in revenue in its fiscal second quarter.
The Montreal-based company said net income in its July-September quarter was $38.3 million or 15 cents per share, up from $35.6 million or 14 cents per share in the prior-year period.
Revenue fell to $487.5 million from $506.5 million.
CAE (TSX:CAE) said it will raise its quarterly dividend by one cent to six cents per share, starting with the next payout on Dec. 31.
On the Toronto Stock Exchange, the company’s shares were down 19 cents, or 1.58 per cent, at $11.84 in early afternoon trading.
“We improved operating margins during the quarter in both civil and military (divisions), sustaining our confidence that performance will be stronger in the second half,” chief executive Marc Parent said in statement accompanying the financial results.
Revenue in its civil aviation segments decreased six per cent in the second quarter of fiscal 2014 to $269.3 million, compared with $285.3 million in last year’s quarter.
Revenue for CAE’s combined military segments declined one per cent to $191.1 million compared with $192.9 million.
In the company’s new core markets, revenue was down at $27.1, compared with $28.3 million last year.
CAE is a global leader in modeling, simulation and training for civil aviation and defence. It has about 8,000 employees at more than 100 sites and training locations in about 30 countries. The company also offers civil aviation, military and helicopter training services in more than 50 locations worldwide.