CAE simulator sales expected to take off with sale of five units for $65 million

Summary
A global manufacturer has just sold another five aircraft simulators for $65 million dollars. The five CAE 7000 Series Level D full-flight simulators were sold to Qantas Airways, Shanghai Eastern Flight Training Centre, and to an unknown customer in India lifting its sale number to 22 for this fiscal year that ends in March 31. It is said in this article that the sale of aircraft simulators is going to take off in the coming year or so. The sale of aircraft simulators is a support of the statement that suggests air traffic is growing. Each simulator sold increases $13 million dollars to the revenue, which is about half a cent per share in net earnings. Industry analysts believe that CAE is heading in the right direction of selling over 25, their anticipated number, simulators this year. Cameron Doerksen of National Bank Financial believes that in the next cycle peak, CAE can exceed its last full flight simulator order peak of 37 in a fiscal period of 2008. CAE is also currently, a world leader in providing simulation and training services to the civilian and defense forces around the world. They earn revenues exceeding $1.5 billion a year, employing more than 7500 people at more than 100 sites and training locations in more than 20 countries.

Connection
This article connects to chapter three because of the gross profit and the earnings per share. Because their revenue is so high, in my opinion, it is the company’s major source of income; it is enough to cover the others costs to operate the business. As I have stated in the summary, their income of $13 million dollars per simulator increases about half a cent per share. To calculate the earnings per share, you need to divide the income by the number of common shares prominent during the period. If the number of common shares that show up changes, a weighted average number of shares must be used. The earnings per share figure expresses the amount of income earned during the period in relation to the number of common shares held by the owner.

Reflection
I am glad that airliners are buying new simulators. This gives me a sense of relief when I am on an airplane because I will know that pilots are training with up-to-date equipment. In the future, I think I would feel secure if I invested in this company because of its continuous development of aircraft stimulators such as helicopters, commercial airlines and etc. Although CAE is making a lot of money from the simulators, then again, they are doing a good deed by producing advanced aircraft simulators for pilots in training.