CAE’s defence business takes impairment charge, company says it expects fourth-quarter loss

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CAE’s defence business takes impairment charge, company says it expects fourth-quarter loss
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Based on its preliminary results, the flight simulator company says it expects to post a loss of $1.58 per share for the quarter ended March 31

says it expects to report a loss attributable to equity holders of $504.7-million in its fourth quarter, due to one-time charges related to its defence business.

CAE said its fourth quarter included a $568.0-million non-cash impairment of defence goodwill and $90.3-million in unfavourable defence contract profit adjustments. It also recorded a $35.7-million impairment of related technology and other non-financial assets, which are principally related to legacy contracts.

On an adjusted basis, the company says it earned 12 cents per share in its latest quarter, down from 33 cents per share in the same quarter last year.

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