Markets

Sector Update: Industrials; CAE Reports Earnings, Air Canada Won't Replace Embraer Jets with Bombardier's CSeries

Industrial stocks were declining in afternoon trading, with the S&P/TSX Industrials index tumbling 1.5%.

Bombardier (BBD-B.TO): -4.8%

Air Canada (AC-B.TO): -2.2%

Canadian Pacific Railway (CP.TO): -1.6%

CAE Inc. (CAE.TO): +1.9%

Aecon Group (ARE.TO): -1.6%

SNC-Lavalin (SNC.TO): -1.4%

In corporate news, Air Canada reported Q1 2014 net loss of $341 million, or $1.20 per diluted share, compared to a net loss of $260 million, or $0.95 per diluted share, in the same period last year. On an adjusted basis, net loss was 132 million, or $0.46 per diluted share, compared to a net loss of $143 million, or $0.52 per diluted share, last year. The Capital IQ consensus is for adjusted loss of $0.45 per diluted share.

Consequently, the carrier reportedly decided to not replace its 25 Embraer jets with Bombardier's CSeries jets to avoid additional capital expenditures and debt.

Also, SNC-Lavalin said Thursday its joint venture with AECON Construction Group Inc. received a contract worth $64.8 million to build a 12-storey housing and training facility at the Canadian Forces Base in Halifax.

SNC didn't elaborate financial details of the order, which was awarded by the Government of Canada.

Lastly, CAE Thursday reported net income attributable to equity holders was $60.0 million ($0.23 per share) in the fourth quarter, compared to $43.1 million ($0.17 per share) in the fourth quarter last year. According to Capital IQ, the average forecast of 12 analysts was for EPS of C$0.20. Revenue for the quarter was $583.4 million, compared to $565.6 million in the fourth quarter last year. The Capital IQ forecast was $571 million.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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