Friday 03 October 2008 CAE Inc. (CAE : TSX : $7.84)
Passenger traffic falling faster than airlines can respond
Paradigm Capital maintains a "hold", lowers target to $10.00

Thursday 18 September 2008 (CAE : TSX : $10.16) AIG troubles hurt aircraft backlog
Paradigm Capital maintains a "hold", target of $12.00

Wednesday 03 September 2008 CAE successes mount, but stock stagnates
Analysts call shares of flight simulator maker undervalued; 'valuations present an excellent buying opportunity'

Friday 15 August 2008 CAE Inc. (CAE : TSX : $10.95 | CGT : NYSE : US$10.30)
Diversification enhances predictability
BMO Nesbitt Burns maintains "outperform", 12-month target price is $16.50
Cormark Securities maintains "buy", 12-month target price is $13.75
Desjardins Securities maintains "buy", 12-month target price is $17.00
Dundee Securities maintains "buy", 12-month target price is $16.60
RBC Capital Markets maintains "outperform", 12-month target price increased to $17.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $15.00

Thursday 14 August 2008 MONTREAL: CAE CUSHIONS SELF FROM AIRLINE TURMOIL
CAE, the world's foremost manufacturer of aircraft simulators, says its strategy of protecting itself from uncertainty in the airline industry is being proved successful. The company says it has increased its military activities and also its geographic presence and the business plan has led to a first- quarter profit of $46.1 million, or 18 cents per share, compared with earnings a year ago of $38.7 million, or 15 cents a share. Civil simulator and training accounted for 55 per cent of revenues, and the military the remaining 45 per cent. Revenues were equally split between North America, Europe and emerging markets. CAE also announced a series of new military contracts worth $106 million.

Monday 11 August 2008 CAE Inc. (CAE : TSX : $11.04 | CGT : NYSE : US$10.36)
Awarded contract with Netherlands Ministry of Defense
Dundee Securities maintains "buy", 12-month target price is $16.60

Friday Aug 8, 2008 CAE Consortium wins chopper contract
A military training consortium jointly owned by CAE Inc. and Agusta Westland yesterday announced winning $80 million in NH-90 helicopter training contracts with the Netherlands. Rotorsim, the consortium, will provide the Netherlands Ministry of Defence with one NH90 full-mission flight trainer, in addition to providing maintenance services.

Sunday 27 July 2008 (CAE : TSX : $10.81 | CGT : NYSE : US$10.65)
More deferrals and cancellations coming
Paradigm Capital maintains "hold", 12-month target price is $12.00

Wednesday 23 July 2008 (CAE : TSX : $10.40 | CGT : NYSE : US$10.31)
Airbus and Boeing orders disappoint
Paradigm Capital maintains "hold", 12-month target price is $12.00

Wednesday Jul 16, 2008 CAE orders pour in at air show
Aircraft deliveries and global demand for pilots are flying at record levels and sky-high jet fuel prices are pushing up...

Tuesday 15 July 2008 (CAE : TSX : $10.39 | CGT : NYSE : US$10.36) Aircraft deliveries at risk
Paradigm Capital downgrades to "hold", 12-month target price decreased to $12.00

Tuesday 08 July 2008 CAE Inc. (CAE : TSX : $11.24)
Business mix shifts away from commercial simulator sales
Dundee Securities maintains "buy", 12-month target price is $16.60

Wednesday 11 June 2008 (CAE : TSX : $12.66) Purchased Sabena Flight Academy
Dundee Securities maintains "buy", 12-month target price is $17.75

Wednesday Jun 11, 2008 CAE sees opportunity in Britain
CAE Inc. says a new $24-million contract for two Hawk 128 full-mission jet simulators will help the company make inroads...
Announced yesterday, CAE's deal with Lockheed Martin Corp. could soon double in value if contract options for maintenance and extra support services are approved, the company said.

Tuesday 10 June 2008 MONTREAL: CAE ACQUIRES FLIGHT SCHOOL
CAE, the world's foremost provider of flight simulators, has acquired the Sabena Flight Academy, a pilot training school. The company has a fleet of 40 planes based at its pilot school in Mesa, AR, and operates a training centre with six simulators in Brussels. Sabena has a work force of 135. The value of the acquisition hasn't been disclosed.

Tuesday Jun 10, 2008 CAE buys pilot academy
CAE said yesterday it bought Europe's Sabena Flight Academy for cash consideration, to address the global shortage of pilots. A Belgian newspaper said CAE spent about $62.5 million for the academy. The value of the deal wasn't officially disclosed. Sabena, an independent training centre operating on two continents, specializes in ab-initio training, a system for pilots with no experience. It operates an academy equipped with about 40 aircraft in Mesa, Ariz., and a six-simulator training centre in Brussels, CAE said. With 135 employees, Sabena trains more than 400 pilots per year. "This strategic bolt-on acquisition is ... in support of our CAE Global Academy as it will bring our capacity to train cadets to more than 1,400 a year globally," said Jeff Roberts, president of CAE's innovation and civil training and services group.

Friday 23 May 2008 CAE Inc. (CAE : TSX : $13.19 | CGT : NYSE : US$13.38)
Earnings growth sustainable, balanced commercial and military drivers
Dundee Capital Markets maintains "buy", 12-month target price is raised to US$17.30

Friday 16 May 2008 CAE Inc. (CAE : TSX : $13.25)
Military & civil training to drive 2009, earnings power through, outlook maintained
BMO Capital Markets maintains "outperform", 12-month target price is raised to $16.50
Desjardins Securities reiterates "buy", 12-month target price is $17.00
Dundee Capital Markets continues "buy", 12-month target price is $17.10
GMP Securities continues "buy", 12-month target price is $17.20
Paradigm Capital reiterates "buy", 12-month target price is raised to $19.00
Raymond James downgrades to "market perform", 12-month target price is $13.50
RBC Capital Markets maintains "outperform", 12-month target price is raised to $16.00
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $15.00
TD Newcrest maintains "buy", 12-month target price is raised to $16.00

Thursday 15 May 2008 CAE Inc. (CAE : TSX : $13.11)
Q4/08 expected to support recent share strength
TD Newcrest maintains "buy", 12-month target price is $15.00

Tuesday 13 May 2008 CAE Inc. (CAE : TSX : $13.23)
Aerospace cycle remains robust, expect solid quarter based on strong booking activity
Desjardins Securities maintains "buy", 12-month target price is $15.75
Dundee Securities maintains "buy", 12-month target price is $17.10

Monday 21 April 2008 CAE Inc. (CAE : TSX : $11.96)
Proposed merger of Delta and Northwest seen as a non-event for CAE
Dundee Securities rates a "buy", 12-month target price is $17.10

Tuesday 15 April 2008 (CAE) - $11.99 - Strong Orders & Outlook
Outperform, Above Average Risk, Price Target: $15.00
Strong fundamentals combined with the possibility of CAE being acquired have driven the share price higher. Record orders for commercial and business aircraft have translated into a highly visible backlog, supporting RBC CM’s outlook for strong F2009 and F2010 results. Last year, CAE raised its guidance for orders from 30 to 34, and finished the year with 37, up from 34 the year before. Significantly, CAE won 3 orders for full flight simulators for the Boeing 787, and numerous orders for rapidly growing airlines in Asia. Military budgets are rising and CAE is well positioned with the US special forces, NATO and the Canadian military. It was reported by the Globe and Mail (April 9/08) that the Canadian government is expected to sign a $600MM contract within the next month for training for the Hercules transport aircraft and Chinook helicopters (est. $250MM to CAE). RBC CM believes this is expected by the market. In March, CAE received military contracts worth over C$80MM from the U.S. Navy, U.S. Army, U.S. Coast Guard as well as international prime contractors. In addition, there is a growing pilot shortage in China and India. CAE has responded by opening new training centres in India and China, and expanding its facility in Dubai. Relocating under-utilized simulators increased capacity utilization in F2008 and RBC CM expects further benefits in the current F2009. In F2008, CAE's civil training segment had an average of 108 RSEU's (active simulators) vs. 99 and expects 10% organic growth in F2009.

Friday Apr 11, 2008 CAE gets Boeing deal
Boeing Inc. has awarded Montreal-based simulator-maker CAE Inc. an initial $11-million contract to design and build a prototype operational flight trainer for the P-8A Poseidon anti-submarine aircraft. The U.S. Navy plans to buy 108 Poseidons to replace its P-3C Orion maritime patrol aircraft. The contract includes options for more simulators, bringing the value to $80 million U.S. over five years.

Friday 11 April 2008 (CAE : TSX : $12.50) Record planes deliveries
Dundee Capital Markets maintains "buy", 12-month target price is $17.10

Wednesday 09 April 2008 (CAE : TSX : $12.90) Order flow strong Dundee Securities rates a "buy", 12-month target price is $17.10

Wednesday 26 March 2008 CAE (CAE : TSX : $11.90), Net Change: -0.03, % Change: -0.25%, Volume: 856,421
Take off, eh? The Financial Post reports that CAE could be a takeover target for Airbus. The paper wrote that Louis Gallois, EADS (the parent company of Airbus) chief executive, said in a memo to staff this month - it was leaked to the media - that one of his primary objectives in 2008 was to "propose two acquisition projects in the field of defence, security or services to the board, at least one of which is in the U.S." CAE has been long rumoured as a takeover target and has attracted some interest from private equity, according to CAE management. Would a CAE/Airbus combo make sense? CAE currently has JV training centres with Airbus around the world and has manufactured many more Airbus simulators than Boeing (BA) simulators, as those have tended to go to a former Boeing company, Alteon.

Tuesday 25 March 2008 Takeover talk is once again swirling around CAE (CAE), the world's largest manufacturer of full-flight simulators, with EADS NV, the parent of European aircraft manufacturer Airbus, shopping around on this side of the pond for an acquisition.

Thursday Mar 20, 2008 Robert Brown, president and chief executive officer of CAE, shows off one of its simulators at the company's Montreal headquarters. Photograph by : CHRISTINNE MUSCHI450 x 309

Robert Brown, president and chief executive officer of CAE, shows off one of its simulators at the company's Montreal headquarters. Photograph by : CHRISTINNE MUSCHI450 x 309

CAE gets jump-start on CSeries
CAE Inc., the world's largest manufacturer of full-flight simulators, says it has already done a lot of the groundwork required...

Tuesday Mar 11, 2008 CAE wins contracts worth $66 million
Montreal simulation giant CAE Inc. said yesterday it has won defence contracts worth $66 million in Singapore and Germany. CAE will design and build Seahawk and Super Puma helicopter simulators for the Singapore Air Force and also provide new cockpits for the aircraft. CAE will also provide a range of on-site maintenance support and logistics services for the German Defence Department's existing flight-simulation equipment. It did not break down the value of each contract.

Friday 29 February 2008 MONTREAL: CAE EXCEEDS PREDICTION FOR SIMULATOR SALES
CAE Inc., the world's biggest maker of flight simulators, says it has received four orders for full flight simulators worth $52 million. Lufthansa Flight Training and Xiamen Airlines of China have bought two of the devices each bringing the total sales for the year ending March 31 to 36. CAE had originally forecast sales of 30 full flight simulators. CAE has provided the majority of simulators in operation in China. Friday Feb 15, 2008 CAE reports 33% jump in earnings
Airbus and Boeing added 2,300 airliners to their combined order book last year, ensuring a smooth flight path ahead for ...

2007

Saturday 22 December 2007 (CAE : TSX : $13.14 | CGT : NYSE : US$13.18)
Announces large NH-90 contract
Dundee Securities maintains "outperform", 12-month target price is $17.10
Raymond James maintains a "outperform", 6-12 month target price is $16.25

Thursday 20 December 2007 MONTREAL: CAE WINS ANOTHER AUSTRALIAN CONTRACT
CAE, the world's biggest manufacturer of aircraft simulators, has won a contract with the Australian military worth $160 million to provide two full flight and mission simulators and services to train Australian helicopter pilots. The pilots will be flying the 46 Eurocopter MRH90 multi-role helicopters which will replace the military's Sea King and Blackhawk helicopters. CAE had already delivered simulators for training on five other Australian military aircraft.

Thursday 20 December 2007 CAE Inc. (CAE : TSX : $13.30)
Orders for 8 FFSs
Paradigm Capital maintains
"buy", 12-month target price is $17.00
Raymond James maintains "outperform", 6-12 month target price is $16.25

Monday 17 December 2007 (CAE : TSX : $12.99 | CGT : NYSE : US$12.79)
Signs two new contracts
Raymond James maintains "outperform", 6-12 month target price is $16.25

Tuesday Dec 11, 2007 450x299
Aerospace takes flight
Dubai Aerospace Enterprise started out in 2006 as a small aviation company with huge plans.

Monday 26 November 2007 CAE Inc. (CAE : TSX : $11.66)
Q2/08 results beat slightly, thanks to FX gains
Canaccord Adams maintains a "sell", target of $9.00

Tuesday 20 November 2007 MONTREAL: CAE WINS AIRASIA CONTRACT
CAE Inc., the world's biggest manufacturer of airline simulators, has announced a $50-million contract to train pilots for AirAsia over 10 years. The Canadian firm says it will train future and current pilots at AirAsia's flight school in Kuala Lumpur. The school is at present equipped with three simulators for the Airbus 320 owned by the airline and a third for the Boeing 737 owned by CAE. CAE is to add another Airbus 320 apparatus and an Airbus 330 within 14 months. Air Asia has a fleet of 62 airliners which serve 80 routes in 10 countries.

Monday 19 November 2007
CAE Inc. (CAE : TSX : $11.90 | CGT : NYSE : US$12.25)
Price weakness provides entry point
BMO Capital Markets maintains "outperform", 12-month target price is $15.00

Friday Nov 9, 2007 a class="t2" href=" file:///K:/diana%20backupD/0www.Wednesday-Night.com/t-nt.asp" onmouseover="return overlib('click to bbc ', LEFT);" onmouseout="return nd();" target="_"> Loonie may clip the wings of CAE flight simulators
The soaring Canadian dollar may be clipping the wings of CAE Inc.'s thriving flight simulator business this year, but it...
Most of CAE's business is in U.S. dollars, so it receives less in Canadian dollars - its reporting currency.
Its full-flight simulators, costing up to $15 million U.S. each, are built in Canada, where labour and other costs are now higher.

Thursday 08 November 2007 (CAE : TSX : $12.07)
Q2 preview
Canaccord Adams maintains "sell", 12-month target price is $9.00

Wednesday 17 October 2007 CAE TAKES EDUCATION SERIOUSLY
To complete his MBA in technology management (CAE covered his tuition fees) he's developed a business plan for a project that a fellow employee suggested; it's in the area of computer simulation but outside CAE's traditional field of pilot training.

Friday 12 October 2007 CAE Inc. (CAE : TSX : $13.37)
Aerospace cycle still has momentum
Desjardins Securities maintains "buy", 12-month target price is $15.75

Friday 28 September 2007 CAE (CAE) - India's Hindustan Aeronautics Limited (HAL) and CAE of Canada Wednesday signed an agreement to set up a joint venture for a helicopter simulator training center in the southern Indian city of Bangalore, the Hindu newspaper reported Friday.

Thursday 27 September 2007 CAE (CAE) announced this morning it has signed contracts to design and manufacture three full-flight simulators and associated CAE Simfinity(R) training devices valued at approximately $50 million at list prices.

Tuesday 14 August 2007 MONTREAL: CAE GETS MORE U.S. DEFENCE WORK
CAE Inc., the Canadian firm that is the world's biggest maker of flight simulators, has announced a contract worth US$66 million with the U.S. Navy. CAE is to supply three more flight trainers and two additional weapons trainers for the MH-60S knighthawk helicopter. CAE USA has now received seven contracts for flight trainers and six weapons tactics contracts for the helicopter. The U.S. Navy plans to acquire more than 500 of the aircraft through 2015.

Thursday 09 August 2007 CAE results rise 19%
Flight simulator firm also sees its revenue rise

Wednesday 20 June 2007 PARIS: CAE EXPANDS IN INDIA
CAE Inc., the world's biggest maker of flight simulators, has announced at the Paris International Air Show that it is expanding its operations in India. The Canadian firm says it will develop together with the Airport Authority of India a National Flying Training Institute which CAE will manage. The two parties will invest US$25 million in the government flight training school, which will train 400 pilots a year. CAE says the operation will complement the training centre which it already runs in the south-central city of Bangalore. India says it now has 2,500 airline pilots but will need 5,000 more over the next five years.

Fri 01/06/2007 rci MONTREAL: CAE THRIVING
CAE, the world's biggest maker of airliner simulators, has reported excellent quarterly and yearly results. The Canadian firm says its fourth-quarter earnings tripled to $34.3 million, on increase of almost 19 per cent in revenue compared with a year previous. For 2006, CAE earned $127.4 million, an improvement of more than 100 per cent on its 2005 earnings. CAE CEO Robert Brown attributes the success to a diversification between products and services across civilian and military markets.

Sunday 03 June 2007 High-flying CAE eyes better days
Good times return for flight simulator maker that went into a slump after

Friday 09 February 2007 RBC CAE Inc. (CAE) - $12.00 – Civil Simulators Soar: Target Increased to $12 from $10
Sector Perform, Above Average Risk – Price Target: $12.00 CAE reported Q3F07 EPS (before unusual items) of $0.13, above the RBC CM estimate of $0.10 and consensus of $0.11. Civil simulation manufacturing had an excellent quarter with revenues of $92MM and an operating profit of $15.5MM for an EBIT margin of 16.8%. This division received 10 orders for full flight simulators to bring orders to 27 for the 9 months. CAE expects 33 Full Flight Simulator orders for F2007. CAE is well positioned to benefit from spending on complex battle training systems. Overall backlog rose 5% Q3/Q2 to $2.7 billion. The book to bill ratio for both civil divisions was 1.2x and 0.6x for military simulation products and 1.3x for military training. CAE is expanding into India with the establishment of its first training centre.
CAE’s share price reflects investors’ enthusiasm for the aerospace sector where airplane orders, especially from Asian airlines, remain robust and the US airline industry moves toward a massive fleet renewal. In 2006 Boeing received 1,044 orders and Airbus 824. Most of these are from outside the US. The cycle may be extended by US airlines placing orders as they emerge from Chapter 11. RBC CM increased its earnings estimates and target price to $12 from $10.

Friday 02 February 2007 globe CAE to open training centre in India
BANGALORE, India — CAE Inc. said Friday it plans to invest $20-million (U.S.) in its first aviation training centre in India and is looking for a partner in the facility.

The centre, near Bangalore International Airport in south-central India, is to open by the end of this year and eventually will train up to 1,000 pilots annually on the Airbus A320 and Boeing 737. It will also train cabin crew and maintenance workers.

Montreal-headquartered CAE said is “evaluating partnership possibilities.”

“Listening to our customers, we realized the strategic importance of opening a training centre in India,” stated Jeff Roberts, president of CAE's civil training group.

2006

Thursday 07 December 2006 MONTREAL: SIMULATOR FIRM WINS MILITARY CONTRACTS
Canadian flight simulator manufacturer CAE has announced having won more than $60 million of military contracts. More than one-half of that amount is to design, manufacture and maintain a simulator for the German navy's P-3C Orion aircraft. CAE will also build two helicopter training models for the U.S. Army.

Wed 16/08/200 MONTREAL: CAE WINS TWO MILITARY CONTRACTS
The world's biggest maker of flight simulators, CAE of Canada, has announced two new major contracts. The firm says it has a $50-million contract to upgrade the British Royal Navy's Merlin helicopter training system, which was itsxlf originally built by CAE. The system is used to train pilots for ship deck landing and to familiarize them with the helicopter's cockpit. CAE says as well that its U.S. subsidiary has won a $25-million contract to make a flight trainer for an aircraft used by the U.S. Navy.

Wednesday Apr 5, 2006 rci CAE Inc., the world's biggest maker of flight simulators, has announced that its U.S. subsidiary has won an important contract with the U.S. Army. CAE says that CAE USA is part of a consortium that has won a contract initially worth $21 million Cdn. to build five training centres intended to prepare soldiers for what combat is like. The partners will create software and virtual training programs that will be imparted to prepare soldiers and air personnel for war. The contract contains option clauses that could extend over five years and make the entire contract worth $68.5 million. CAE provides simulation technologies for both civilian and military aviation. The Canadian firm has revenues of about $1 billion a year and does business in 18 countries.

Friday Mar 31, 2006 CAE Inc., the world's biggest manufacturer of flight simulators, has announced contracts in the U.S. and Europe worth $38 million US. CAE says it has won a $22-million contract with EADS CASA, Spain's top aerospace firm, to make simulation and training systems for the C-295 aircraft. The Canadian firm also has a $16.5-million contract with the U.S. Navy to design and manufacture a flight trainer for the MH-60 helicopter and to upgrade the navy P-3C Orion surveillance aircraft program.

Saturday Mar 18, 2006 rci The Canadian maker of flight simulators, CAE Inc., says it has won a contract in China. CAE says it has won a $15-million contract to make a flight simulator for a regional jet that's under development by China's AVIC I Commercial Aircraft Co. The Canadian firm says the aircraft will be the first to be wholly designed and built in the country. The ARJ21 will have 90 seats and is supposed to go into service in 2009.

Thursday Feb 16, 2006 CAE swings to profit
Aircraft-simulation maker posts Q3 profit of 7¢ a share as sales increase 7.4%

2005

Thursday May 12, 2005 CC Pilot-training equipment maker CAE Inc. (CAE) rose after the company reported earnings that met analyst expectations. The company says corporate restructuring charges for the fiscal year 2006 are tracking at the low end of the $55 million to $65 million range.
CAE Inc. (CAE : TSX : $5.94) Net Change: 0.46, % Change: 8.39%, Volume: 4,278,200 Big bad Bobby Brown. An improved earnings report sparked a resurgence in interest in CAE shares yesterday. In Q4F05, which ended in March, the company earned $0.04 per share, which although flat with last year and a penny below the First Call estimate, was a major improvement from the $1.40 per share the company lost in the December quarter due to restructuring and asset impairment charges. CAE noted that it is making progress on its restructuring plans, improving its balance sheet and cash flow and reorganising its business. The new fiscal year now underway is viewed as being a key transition year F2006 where management plans to lay the foundation for earnings growth in F2007 and beyond. While the company believes that major challenges remain, yesterday's rally on volume suggests that as long as the business stabilizes, sentiment can improve as investors begin to anticipate a potential recovery.

Scotia Monday Feb 14, 2005 (CAE-T, CGT-N; C$5.20) Q3/05 Another Miss - Restructuring Unveiled
We continue to rate CAE shares a 3-Sector Underperform.
Rating: -- 3-SU Risk: -- High Target: 1-Yr $4.25 2-Yr $5.00
td HOLD (unchanged); Target: C$5.60 (prior: C$5.20)
Positioning For Long-Term Profitability

Friday Feb 11, 2005 gaz
CAE cutting jobs, restructuring company Flight simulator firm CAE Inc. will tear down and rebuild its corporate structure, shedding eight per cent of its workforce in the process, after recording a massive third-quarter loss of $347 million.

td Friday Feb 11, 2005 (CAE-T, CGT-N; C$5.00) HOLD Target: C$5.20 (unchanged)
CAE - Strategic Plan Forthcoming Shortly

Friday Feb 11, 2005 . (TSX: CAE; NYSE: CGT) Sector Perform Above Average Price: $5.00 Target: $5.20
CAE is scheduled to report FQ3/05 results on Friday, February 11th. We also expect a progress report on the strategic review process currently underway.
We view CAE as fairly valued at current levels, and would wait for greater clarity on potential earnings growth (presumably the intent of the strategic review), or for an entry point in the $4.00-4.50 range.
We continue to rate CAE Sector Perform – Above Average risk with a target price of $5.20.

ns Tuesday Jan 25, 2005 (CAE-T C$4.91)
We provide a brief preview of the company's upcoming Q3/05 release, scheduled for February 11. Ours and the Street's expectations are relatively muted with respect to the upcoming quarter.
F2006 street estimates appear too aggressive and portend further earnings misses by the company. We continue to rate CAE shares a 3- Sector Underperform with a one-year price target of $4.00 per share.
Rating: 3-SU Risk: High Target: 1-Yr $4.00 2-Yr $4.75

From Scotia Wednesday Dec 8, 2004 CAE Inc. (CAE-T C$4.60)
We have lowered our F2005-F2007 EBIT margin forecasts for the Civil division, as well as reconfigured our estimates to exclude the contribution from Marine Controls, which was sold, in our F2005 estimate. Our one-year price target has declined to $4.00 per share from $4.75 previously. We maintain our 3-Sector Underperform rating.
Rating: -- 3-SU Risk: -- High Target: 1-Yr $4.00

Sunday Nov 7, 2004 ts
Discontinued unit cuts CAE`s quarterly profit
MONTREAL— Aviation training firm CAE Inc. says its second-quarter profit fell to $14 million from $15.1 million as income from the recently sold marine unit declined.

Friday Sep 10, 2004 MONTREAL: CAE LOSES APPEAL AGAINST BOMBARDIER The world's biggest manufacturer of aircraft simulators has lost an quasi-judicial appeal against one of Canada's biggest manufacturers. The Canadian International Trade Tribunal has ruled that CAE Inc. has no case against Bombardier Inc. CAE had complained that the Canadian defence department was wrong to have granted a contract to Bombardier and its U.S. partner, L-3 Communications of New York, for a contract to train pilots of CF-18 fighter planes worth as much as $270 million. CAE had complained that its bid was $44 million lower and that it would have provided Canadian technology, whereas the rival bid will be based on simulators manufactured by L-3 for the U.S. Navy. The Tribunal has not offered an explanation for its decision but says one will be forthcoming.

Wed 8/11/2004 cbc CAE SEES EARLY SIGNS OF RECOVERY IN CIVIL AVIATION
CAE Inc. reported Wednesday that its second-quarter earnings almost doubled, and said it plans to shift its head office to Montreal from Toronto.

Tuesday Aug 3, 2004 MONTREAL: CAE SIGNS FOUR CONTRACTS
The world's biggest manufacturer of aircraft has announced the signing of four new contracts worth $19 million. CAE Inc. of Montreal says one contract is with the United Arab Emirates to provided an integrated bridge systems for the country's military corvettes. The systems will be used to control and to navigate the vessels. CAE also says it has signed a contract with the German military to construct a land-based test facility for the navy's frigates.

Tuesday Apr 6, 2004 CAE Inc., the world's biggest maker of aircraft simulators, says it will lay off 300 employees because it lost a contract with the Canadian military. Two-hundred-and-fifty of the layoffs will be at CAE's facilities in Montreal. The company says it will be obliged to take an $8 million restructuring charge to cover the cost of the layoffs. The Canadian government elected to give a contract to train CF-18 pilots to Bombardier Inc. and a U.S. partner, L-3 Communications Corp. of New York. CAE's CEO, Derek Burney, says it's unfortunate that the Canadian government would act in such a way as to cause a loss of Canadian jobs in a domain whether the country has a high-technology expertise.

Thursday 11 Mar 2004 sm CAE Inc. (CAE - $5.92) Rating: 3-Sector Underperform Target: $6.25
CAE Appears to have Missed CF-18 Contract
Though no formal announcement has been made, it appears CAE has failed to win the estimated $220M CF-18 training upgrade contract with the Canadian government. In our opinion, the financial impact of a win would have been modest and any strength in the shares would have been a selling opportunity. The implications of a loss are more ominous as they pertain to a dwindling roster of medium-term military contract opportunities, as well as questions regarding CAE's positioning. We are not deeply worried, but feel a downward adjustment to our per annum gross military backlog add assumptions is warranted. We have reduced our F2005 earnings estimate to $0.33 per share from $0.34, our F2006 estimate to $0.41 from $0.42, and our F2007 estimate to $0.46 from $0.47. Our one-year target remains unchanged at $6.25 and we maintain our 3-Sector Underperform rating. –– James David The Research Analyst/Associate has visited material operations of the following issuer(s): Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities.

Thursday 11 Feb 2004 TORONTO: CAE CUTS 500 POSITIONS
CAE, the world's biggest maker of flight simulators, says it has had to cut 500 jobs in recent months, most of them in the Montreal area. However, its CEO, Derek Burney, says some of the layoffs may be temporary, depending on which contracts the company wins. Mr. Burney says CAE is hoping to with a $240-million contract with the Canadian government to supply equipment and training for a revamping of the military's CF-18 warplanes. He says the company is also hoping for an even more lucrative contract with the British government for armoured vehicle training. Mr. Burney also reports that CAE earned $21.4 million, or nine cents a share, in its third quarter ending on Dec. 31, a decline of almost one-third compared with the previous third quarter.

Thursday Jan 22, 2004 cbc
CAE LEADING BIDDER FOR BIG EUROPEAN TRAINING ORDER A joint venture in which aviation technology and training company CAE Inc. is one of two partners has been picked as the "preferred bidder" for a $650-million contract to train European crews on the NH90 helicopter.

Tuesday Nov 11, 2003 CAE Inc. (CAE - $5.60) Rating: 3-Sector Underperform Target: $5.25
Q3 Results - Missed Again
CAE reported fiscal Q2/04 earnings from continuing operations of $0.07 per share versus $0.11 for the same period a year ago. Revenues for Civil Simulation & Training were up 6% YOY while revenues for both Military Simulation & Training and Marine Controls declined. The profitability in all divisions declined due to lower volumes, the negative impacts of a rising Canadian dollar and higher pension costs. On a positive note CAE received orders for 11 civil flight simulators to date, equivalent to the total number of simulator sales in all of fiscal 2003. In view of the decline in margins we are lowering our fiscal 2004 earnings estimate to $0.33 per share from $0.39 per share and our fiscal 2005 earnings estimate to $0.39 per share from $0.41 per share. CAE has failed to meet earnings expectations in the past two quarters and remains one of the key reasons we are hesitant to take a more positive longer-term view on the shares at this time. We are maintaining our 3-Sector Underperform rating. Gus Papageorgiou Within the last 12 months, Scotia Capital Inc. has undertaken an underwriting liability with respect to equity securities of, or has provided advice for a fee with respect to, the following issuers.

Sunday Sep 28, 2003 cbc
CAE SHARES FALL ON LOSS OF $800 MILLION U.S. ARMY CONTRACT Flight simulator maker CAE saw its shares lose 15 per cent of their value Friday after it announced it was not the winner of a lucrative multi-year contract with the U.S. Army.

Friday Sep 12, 2003 cbc
CAE will issue almost 27 million more shares CAE TO RAISE $175 MILLION TO REDUCE DEBT Flight simulator company CAE
announced Thursday it would raise $175 million in an equity offering. The proceeds would be used to pay down debt.

Friday Aug 8, 2003 CAE Inc. (CAE - $5.29)
Rating: 3-Sector Underperform Target: $5.25
Q1 Results Disappoint
CAE reported Q1/04 earnings from continuing operations of $0.07 per share versus $0.17 for the same period the previous year and well below analysts' expectations. Foreign exchange negatively impacted earnings by $0.04 per share while operational issues lowered earnings by $0.06 per share. CAE's Civil Simulation & Training business saw a 19.5% drop in revenues as simulator revenues slid 50% while training revenues declined 20%. A continued deterioration in revenues is expected through the year for this business. Military Simulation & Training revenues slipped 6%. Maturing contracts relative to new order inflow should lead to further slippage through the balance of the year. As for the company's balance sheet, CAE remains comfortably within the confines of its debt covenants. Sale and leaseback activity has the potential to provide the company with an additional $400 million in liquidity. We have adjusted our 2004 EPS estimate to $0.40 per share from $0.42 per share. Our 2005 EPS estimate has been trimmed to $0.43 from $0.44 per share. We have also taken down our target price to $5.25 from $5.50 per share. We continue to rate the shares a 3-Sector Underperform and recommend investors avoid the shares. –– James David

Tuesday Aug 5, 2003 MONTREAL: CAE WINS BREAKTHROUGH CONTRACT
The Canadian firm that is the world biggest maker of flight simulators has won what it calls a "significant" contract with the European Airbus consortium. CAE says it has won a $10-million contract to supply simulators for two new Airbus models. They are the A400M military transport and the A380, which will be the world's biggest commercial airliner. The Canadian company says the contract is unusual because the engineering simulators will be designed to evaluate the aircraft in question before they are even built. CAE says it's interesting for a maker of simulators to be involved in the early stages of the conception of new aircraft. CAE is mainly known for its full flight simulation systems used to train pilots. The company is based in Toronto but does most of its production in Montreal.

Wednesday Jul 9, 2003 CAE Inc. (CAE - $6.23) Rating: 3-Sector Underperform Target: $5.50 Mbr> Transfer of Coverage
We are reinitiating coverage of CAE Inc. due to a transition of analyst coverage. As a result, the rating has changed from a 2-Sector Perform to a 3-Sector Underperform. Our belief is that consensus expectations for the company are too high. North American airline industry finances remain in a state of disarray and CAE's civil simulation and training backlog is shrinking as a result. CAE remains a leader in the commercial simulation market and is therefore well positioned for an eventual recovery in that market. New order activity is also light in the military segment compounding the effect of problems in the commercial segment. For the fiscal year ended March 31, 2004, we forecast the company will earn $0.42 per share, down from $0.60 per share earned in fiscal 2003. Looking out to fiscal 2005, we anticipate only a modest improvement in earnings to $0.44 per share. We believe the street's recent concern about liquidity is overblown, nonetheless, CAE does face the prospect of limited financial flexibility. The aerospace/simulation sector has traded at a price of 12 times forward earnings during the aerospace downcycle and averaged 15 times forward earnings through the a full business cycle. Applying these valuation metrics to our earnings forecast yields a one-year target price of $5.50. –– James David

Wednesday Jun 18, 2003 CAE (CAE : TSX : $5.37)
Net Change: 0.19, % Change: 3.67%, Volume: 1,559,700
From Paris with love. Shares continued to firm Tuesday as the company continued to announce deals from the Paris Air Show. First, the company’s Emirates-CAE division announced that it will add a Hawker 800/800XP simulator to its Dubai facility, and that it signed on three new airline customers. Second, Rotorsim, a consortium owned by CAE and Agusta S.p.A. announced plans to open a helicopter training centre in Italy. The centre will train military and civilian helicopter pilots on a simulator for the AgustaWestland A109 helicopter. The centre is expected to generate $125 million in revenue over 15 years starting in 2005. Raymond James raised their price target to $5.50 from $4.00.

Sunday Jun 1, 2003 CAE Inc. (CAE : TSX : $4.58)
Net Change: 0.35, % Change: 8.27%, Volume: 2,037,500
This is Ground Control to Major Tom. CAE shares took flight Wednesday, rallying on volume after the company announced a new flight-training contract. CAE won a 10-year, $70 million contract to provide flight training support services to all three branches of the Australian Defence Force. Griffiths McBurney initiated coverage on CAE with a HOLD rating and $4.40 target price.

Friday May 9, 2003 (CAE : TSX : $3.92)
Net Change: -0.22, % Change: -5.31%, Volume: 2,282,600
After rallying over the last few days, CAE shares slipped back after the news was released. Revenues for the March quarter fell 10.5% to $312.2 million, while net income from continuing operations fell 5.3% to $25.2 million, or $0.18 per share.

Wednesday May 7, 2003 CAE Inc. (CAE - $4.14) Rating: 3-Sector Underperformer Target: $4.30
Q4 Earnings Preview CAE is expected to report Q4/03 financial results today. For the quarter, we expect sales of $314 million and EPS of $0.18. Both figures represent declines from the same quarter last year when revenues when $349 million and EPS was $0.21. Foreign exchange could hurt the company's bottom line to the tune of $0.01 to $0.02 per share as roughly 35% of its sales are denominated in U.S. dollars. The focus remains on the company's near-term profitability and debt levels. Weakness in the global airline industry continues to plague the company's commercial simulator and flight training businesses. There has also been some delay in the awarding of military contracts by the U.S. We continue to believe the U.S. military represents a large under-penetrated market for CAE. AS of Q3/03, the company's backlog stood at $2.4 billion ($400 million for commercial simulation/training, $1.35 billion for military operations, and $700 million for the marine unit). Our full year EPS estimates stand at $0.60 for fiscal 2003 and $0.58 for fiscal 2004. The shares are rated as 3-Sector Underperform. –– Gus Papageorgiou

Thursday Apr 3, 2003 CAE Inc. (CAE : TSX : $3.70)
Net Change: 0.26, % Change: 7.56%, Volume: 3,060,200
THIRD UP DAY, CAE SHARES CONTINUE TO GAIN ALTITUDE. On Monday, CAE received a $17 million contract from South African Airways for a full Airbus 320 flight simulator. This was CAE's 11th simulator win in fiscal 2003. More importantly, RBC Capital Markets gave CAE the "thumbs-up" and upgraded shares to OUTPERFORM from SECTOR PREFORM, raising CAE's price target to $6.10 from $5.75 on Tuesday.

Tuesday Apr 1, 2003 CAE (CAE) was up on news it won a $17 million contract to provide a flight simulator to South African Airways.

Monday Mar 31, 2003 CAE (CAE : TSX : $2.88)
Net Change: -0.07, % Change: -2.37%, Volume: 2,173,600
Touches a nine-year low. The manufacturer of flight simulators and flight training software touched its lowest level since 1994 on Friday. Last week, Raymond James downgraded CAE to an UNDERPERFORM from MARKET PERFORM, slashing their 52-week target price to $3.00 from $6.00. Ray Jay also cut their 2004 full-year earnings estimate to 50 cents a share from 62 cents, after a report from consulting firm Air Inc. stated CAE’s training revenue in 2004 is not likely to meet expectations. Although the pilot-training market last year was reasonably robust, the report said a lack of new hirings and the return of pilots on furlough signals that training revenue could fall.

Saturday Mar 29, 2003 CAE (CAE : TSX : $2.95)
Net Change: -0.07, % Change: -2.32%, Volume: 3,345,600
CAE firmed after the company announced several new simulator orders. CAE won a $20 million contract along with Lockheed Martin (LMT) to provide a C-130J Fuselage trainer to the U.S. Air Force. CAE also received $35 million in orders for a Boeing (BA) B737-800 simulator for the U.S. Federal Aviation Administration and an Airbus A330-300 full flight simulator from Lufthansa. These orders brought CAE’s 2003 full flight simulator order total to ten, so far.

Tuesday Mar 25, 2003 CAE Inc. (CAE : TSX : $3.42)
Net Change: -0.26, % Change: -7.07%, Volume: 2,006,300
Raymond James says CAE doesn't fly at $6.00. Shares of CAE fell after broker Raymond James downgraded its rating on the stock to UNDERPERFORM from MARKET PERFORM and its price target to $3.00 from $6.00. Raymond James says CAE’s training revenue in 2004 will not meet expectations - demand for 777 and A340 aircraft-type simulators is declining.

Sunday Mar 23, 2003 CAE (CAE) rallied 12 percent after the world's biggest maker of gear used to train pilots withdrew a planned $100 million sale of convertible bonds, citing the potential dilution to CAE's share capital.

Saturday Mar 22, 2003 cbc CAE SHARES REBOUND AFTER DEBENTURE WITHDRAWN Shares of CAE traded higher on Thursday after the flight simulator company suddenly withdrew a proposed $100 million US convertible debenture offering late Wednesday that had been announced just hours previously.

Friday Mar 21, 2003 CAE Inc. (CAE - $3.26) Rating: 3-Sector Underperformer Target: $4.30
Pulls Convertible Deal
Yesterday, CAE announced plans for private placement of convertible debt to raise $125 million. The funds were expected to be used to pay down existing credit facilities. The dilution to the common shareholder would have been in the neighborhood of 11% to 14%. Late last evening, the company announced that it was withdrawing the deal as a result of market conditions. Proceeds for the issue were expected to be used to pay down existing credit facilities improving its financial flexibility. The company continues to face a challenging operating environment. Reduced airline passenger travel after September 11th, a sluggish U.S. economy, and geopolitical uncertainty have collectively acted to reduce business for the company. CAE is also experiencing delays in the awarding of new military contracts. Our fiscal 2003 (ended March 31, 2003) EPS estimate is $0.60 per share. We look for continued weakness in fiscal 2004 with earnings of $0.58 per share. In light of current market conditions and the company's balance sheet, the company remains ranked a 3-Sector Underperform. –– Gus Papageorgiou

11/Feb/2003 cbc
CAE Q3 PROFIT DROPS 21 PER CENT AMID 'UNCERTAIN' DEMAND
CAE made a $31.5 million third-quarter profit on slightly higher revenues, the flight simulator maker announced Wednesday.

7/Feb/2003 CAE Inc. (CAE - $4.95) Rating: 3-Sector Underperformer Target: $5.80
Q3 in Line; Tough Market
CAE reported fiscal Q3 results yesterday from continuing operations of $0.14 versus the street's expectations for earnings of $0.13 per share. The macro environment for remains weak. CAE continues to face a tough market fostered by a sluggish U.S. economy, geopolitical uncertainty, and reduced airline passenger travel. While U.S. defense spending is on the rise and presents a significant opportunity for CAE, the company has seen a delay in the awarding of military contracts. The company's debt level increased slightly to $913 million from $858 million in Q2. As of Q3, the company has a debt to EBITDA ratio of 3.3 times, below its debt covenant of 4.1times. The stock is trading at 8.4 times our forward 12-month earnings estimate. Given the challenges the company continues to face, with no near-term capital appreciation potential, we continue to rate the shares a 3-Underperform. Gus Papageorgiou

Jan 22, 2003 CAE (CAE : TSX : $5.76)
Net Change: 0.09, % Change: 1.59%, Volume: 1,078,800 Shares firmed back towards $6.00 on the news that the company received a $24 million contract to provide training devices and services for the C-130J Hercules aircraft to the U.S. Air Force.

2002

Friday Dec 20, 2002 OTTAWA:
SIMULATOR FIRM GETS FEDERAL BOOST FOR INTERNET PROJECT The world's biggest manufacturer of aircraft simulators, the Canadian firm CAE, has announced it has received a federal grant of $39 million to develop a new military project. The project involves creation of a system of connected simulators that would allow military teams using them to take part in a joint simulator exercise. The teams thousands of kilometres apart in space would be joined by Internet links. The device would allow Canadian units in different parts of the world to take part at the same time in computerized military exercises over the Internet. The project also is designed to be sold to foreign militaries. CAE says the system will cost $130 million to develop.

Friday Nov 8, 2002 CANADA-CHINA AVIATION
A major Canadian aircraft engine manufacturer has signed a contract with China's Aviation Industry Corporation. Pratt and Whitney says it will supply special engines to upgrade the Chinese company's helicopter program. The engines will be installed in new more powerful helicopters to be used in the expansion and development of the western region of China. The helicopters will also be used in search and rescue missions. The Chinese aviation company says it will initially purchase 400 engines for the 100 helicopters it expects to build. Earlier this week, a Canadian aviation company, CAE Incorporated, and China Southern Airlines formed a joint venture to provide pilot training for Asian carriers with flight simulators. CAE is a global leader in flight simulators and China Southern Airlines connects more than 80 cities in Asia and other centres worldwide.

Wednesday Nov 6, 2002 TORONTO: CANADA-CHINA AVIATION CONTRACT A Canadian company and a Chinese airline are joining forces to provide training for Asian carriers. The joint venture between Canadian Aviation Electronics, or C.A.E., and China Southern Airlines will concentrate on high-tech training, including the use of flight simulators. The Canadian company is known worldwide as a manufacturer of simulators that mimic most of the modern airliners that fly today. The joint venture is initially expected to generate about US$12 million annually.

Wednesday Oct 2, 2002 cbc
Peter Lougheed CAE LOWERS EARNINGS FORECAST Flight simulator company CAE issued a second-quarter and fiscal 2003 profit warning late Tuesday, blaming "turbulence in the airline industry" and a general economic downturn.

Wednesday Oct 2, 2002 CAE Inc. (CAE - $4.60) Recommendation: 3-Hold Target: $5.00
Profit Warning
Yesterday, CAE warned investors that it would not meet its previous revenue and earnings expectations. The company sited weak demand for flight simulator and pilot training as the primary reasons for its reduced guidance. CAE now expects to deliver between 10 and 12 simulators for the year, down from our previous estimate of 15. The company also expects to maintain pilot training revenues at the Q1 level of $65 million, which would lead to annual revenues of $260 million, down 13% from previous expectations of $300 million. The only area where the company continues to perform relatively well is on the military and marine side. The company plans to reduce its capital expenditures by up to $75 million from $300 million. Reduced capex plans and the sale and leaseback arrangement for flight simulators should allow the company to avoid triggering debt covenants. We are lowering our fiscal 2003 and 2004 EPS estimates to $$0.58 per share and $0.054 per share, respectively from $0.74 per share and $.80 per share. Our new one-year target price is $5.00 per share and our recommendation has been cut to 3-Hold from 2-Buy. Until the U.S. airline industry begins to recover, we do not believe that CAE will be able to materially improve its operating performance. –– Gus Papageorgiou

Tuesday Sep 17, 2002 CAE Inc. (CAE - $5.47) Recommendation: 2-Buy Target: $8.00
Lowering Target Price
We are lowering our target price on CAE to $8.00 per share from $10.00 per share. The adjustment reflects the generally weaker conditions in the aviation industry and the company's disappointing Q1 results. Our new target price represents a 10.8 times multiple on our 2003 earnings forecast of $0.74 per share. We believe there is downside risk in this year's earnings to $0.59 per share. Even under our forecast worst case scenario, the shares are trading at only 9.3 times. We are maintaining our 2-Buy recommendation for investors with a long-term investment horizon, recognizing it may be some time before industry conditions improve. –– Gus Papageorgiou

Friday Aug 16, 2002 CAE Inc. (CAE - $6.34) Recommendation: 2-Buy Target: $10.00
Downside Analysis
We believe the sell-off in the stock over the past week has been overdone. We have performed further analysis to determine the extent of potential downside risk. We believe in the very worst case, earnings could fall 15% in fiscal 2003 to $0.59 per share and to $0.55 per share from $0.80 per share in fiscal 2004. At these prices, the shares would be trading at roughly 10.8 times 2003 earnings. This is near the low-end of the historical range of 7.5 to 22.5 times. Based on our downside risk analysis, we do not believe that CAE would breach its debt covenants. CAE has embarked on an aggressive capital spending program over the next three years estimated at $500 million - largely to build pilot training centers. If the prospects for pilot training fail to emerge, we believe the company could easily relax some of this planned spending. Looking forward, Military contracts are lumpy and difficult to forecast, but there are significant long-term growth opportunities in this business. The current weakness in the U.S. airline industry will likely lead to fewer flight simulator orders and lower utilization rates at the company's flight training centers leading to pricing pressure. Improvements in this these two businesses will likely come after a period of restructuring for the U.S. airline industry and the development and delivery of new aircraft. We recommend the stock at these levels for investors with a longer-term time horizon. –– Gus Papageorgiou

Aug 8, MONTREAL:
CAE TEAMS UP WITH AIRBUS
CAE Inc., the world's biggest manufacturer of aircraft simulators, has announced an agreement to pool pilot aviation training resources with the Airbus aircraft manufacturer. CAE's CEO, Derek Burney, says his company will provide flight training simulators and facilities, while Airbus will contribute course materials and instructors. Mr. Burney says the co-operation agreement will increase the value of the simulators sold to the European consortium. Wednesday's development is the latest sign of CAE's increasing focus on flight training. Mr. Burney told participants at CAE's annual meeting that 40 per cent of the company's revenue this year will derive from that part of its business.

Aug 7, 2002 TORONTO:
SIMULATOR FIRM RECRUITS AMERICANS The world's biggest manufacturer of aircraft simulators, CAE, has recruit three retired American military men to help the firm obtain American military contracts. They include retired U.S. Army Lieutenant-General Ellis, who will be CAE's board of directors for U.S. sales. CAE also has recruited retired U.S. Air Force General Michael Ryan and retired Admiral Leighton Smith. In addition to making simulators for civilian airliners, CAE makes training units for military purposes. The Toronto firm now sells military equipment for export, the sales accounting for more than one-half of its yearly revenues.

Thursday May 9, 2002 CAE Inc. (CAE - $13.10) Recommendation: 2-Buy Target: $14.50 CAE reported fiscal Q4 EPS of $0.21 from operations compared with our estimate of $0.22 per share. Revenue from both military and commercial simulation businesses were higher with revenues from military simulation up 59.7% YOY and revenues from commercial simulation rising 45.2% YOY. SimuFlight (pilot training centres) revenue was recognized for the first time and helped boost sales of the commercial division. Pilot training revenue from both acquisitions and CAE's own internally generated pilot training centres generated roughly $100 million in revenues. Increases in pilot training should more than offset any decline in flight simulator revenue. We are expecting sales from the military division to rise 20% YOY to $700 million in fiscal 2003. The balance sheet improved in the quarter as net debt fell 20% from $976.9 million to $778.9 million. We are forecasting that earnings will increase to $0.85 per share in fiscal 2003 from $0.69 per share in 2002. We are maintaining our 2-Buy recommendation. –– Gus Papageorgiou

Monday Apr 1, 2002 CAE Inc. (CAE - $11.72) Recommendation: 2-Buy Target: $12.50 We had an opportunity to take a plant tour and meet with CAE's CEO and CFO on March 28. CAE's management team delivered a positive presentation outlining its main business initiatives. CAE is expecting to deliver 34 simulators over the next year for both external sale and for use in its flight training centres, allowing the company to maintain economies of scale in its plants. The company does not believe that it will alienate some of its customers through its pilot training initiative. The company continues with its efforts to refocus on its core simulator and flight training operations. On Thursday, March 28, 2002, CAE announced it had completed the sale of its fibre screening business for $162 million. We estimate that the asset sale will result in a one-time gain of $118 million. The company plans to use this cash to strengthen its balance sheet. We are now entering the company's 2003 fiscal year. We are forecasting that earnings will rise to $0.95 per share from $0.85 last year. –– Gus Papageorgiou

Mar 20, 2002 CAE signs $22 million in military service contracts

Friday Mar 1, 2002 CAE Inc. (CAE - $10.10) Recommendation: 2-Buy Target: $12.00 Asset Sale
As planned, CAE has disposed of a portion of its discontinued aqueous-based cleaning systems business. The assets were sold to the management of that unit. The transaction is for $38 million, roughly half of which is cash and the balance in 10-year subordinate notes. As of the last quarter, CAE had $256.1 million of discontinued assets on the balance sheet, of which roughly $190 million were for the forestry groups and $66.1 million for cleaning systems assets. The remaining $28.1 million in cleaning systems assets is expected to be divested during fiscal 2003, which begins April 1, 2002. The transaction has no impact on the company's earnings and only a small impact on the balance sheet. We continue to rate the shares of CAE as a 2-Buy. The stock is trading at a discount to its historical valuation. The sale of non-core assets will continue to help shore-up the company's balance sheet. The company's focus on military and civil simulation systems and development of flight training centers will help reduce the cyclicality of its operations. –– Gus Papageorgiou

Tuesday Feb 5, 2002 cbc
Like the airlines, CAE says business is down since September 11. Officials at the Montreal-based firm are blaming the slowdown in the aerospace industry since September 11.
They say demand for their flight simulators is down.
CAE has 7,000 workers in Canada.

Monday Feb 4, 2002 cbc
CAE TO CUT 500 JOBS AS AIRLINES DEFER JET PURCHASES
Flight simulator manufacturer CAE Inc. will cut 500 jobs in the next couple of months - about 7 per cent of its workforce - as the world's airlines defer new aircraft deliveries in the wake of Sept. 11.

Thursday, January 17, 2002 cbc
CAE Inc. has landed a $21-million contract to supply control systems for two patrol boats being built in Germany for the Royal Malaysian Navy.
CAE also said yesterday it expects to provide control systems for four more vessels of the same design being built by Blohm and Voss in Hamburg.
CAE's integrated platform management system - which the Canadian company describes as the leading digital control system for naval ships - monitors and controls a vessel's propulsion, electrical, damage-control and auxiliary systems, using advanced automation.

2001

Thursday Dec 20, 2001
CAE ACQUIRES JET-TRAINING COMPANY FOR $390 MILLION cbc
CAE is expanding its flight simulator holdings while selling off its forestry unit, the company said Tuesday.

Dec 19, 2001
CAE's Derek Burney opens his company's sixth training centre - its first in Canada - in Toronto last week.CAE Inc. yesterday announced two "pivotal" deals that will substantially alter the company. ..Best known for its flight simulators, CAE is acquiring Dallas-based SimuFlite Training International Inc., a business-jet training firm, from owner GE Capital Commercial Equipment Financing (GE Capital CEF) for $390 million ($247 million U.S.).

Dec 19, 2001 Analysts approved of moves by CAE Inc., in which the company is expanding its core business - flight simulators - and getting out of forestry-related businesses that had not been doing well.

9/Nov/2001 CAE Inc. (CAE - $8.99) Recommendation: 2-Buy Target: $12.00
We have raised our one-year share price target for CAE Inc to $12.00 from $10.50 and maintain our 2-Buy recommendation following the release of the company's second quarter financial results and continued strong financial momentum. The higher target reflects our confidence that a significant drop in orders is less likely. We have adjusted our earnings per share forecast to reflect weaker flight simulator revenues but stronger-than-expected pilot training revenues and annual cost cuts of $10 million. Our positive stance is based on the company's strong profit margins (gross margins improved to 44% from 41% and EBIT margins improved to 20.0% from 18.2%), solid $2.7 billion order backlog ($2.0 billion is military based) and attractive valuation. The shares are currently trading at 12.3x next 12 months earnings estimate, down from 18x in September. –– Gus Papageorgiou

Wednesday, November 07, 2001 CAE, the world's biggest manufacturer of flight simulators, saw its shares surge Wednesday after it reported higher second-quarter profits and a $100-million contract - its third contract announcement in as many days.

Wed 6/20/01 7:00 PM CAE ANNOUNCES EXPANSION, STOCK SPLIT AND HIGHER DIVIDEND CAE is expanding in the U.S. with its announcement that it will build a $75-million flight training centre in Denver.

8/Jun/2001 CAE Inc. (CAE - $27.50) Recommendation: 2-Buy Target: $30.00 We reiterate our 2-Buy recommendation and share price targets of $30.00 (one-year) and $33.00 (two-years) following yesterday's business development announcement. CAE announced that it will begin negotiations with ESS as the "Preferred Supplier" of visual systems for the Eurofighter EF2000 combat aircraft ASTA program. The contract is expected to extend until 2009. We view this announcement as slightly positive due to the its size of only $170 million and the moderate accretion to our forecast 2003 EPS of only $0.02. - G. Papageorgiou

Wed 5/16/01 6:59 AM CAE plant spreads its wings
By: SHEILA McGOVERN
CAE Inc.'s plant in St. Laurent is experiencing another of its regular growth spurts as the company, best known for its flight simulators, branches out into pilot training.
The company said yesterday a $73-million expansion is already under way and is expected to add 120,000 square feet to the plant by June. And the company has already begun hiring some of the 400 additional workers who will be added to its existing 4,000.

Wed 5/16/01 8:00 PM CAE

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