Company News

CAE temporarily closes three training centers on coronavirus turmoil, shares drop

MONTREAL, March 23 (Reuters) - Canadian pilot training specialist CAE has temporarily closed three training centers and is laying off 465 manufacturing workers, amid aviation sector turmoil because of the coronavirus outbreak, the company’s chief executive said on Monday.

CEO Marc Parent, who is taking a 50% salary cut along with other executives, told analysts and investors that he is nevertheless seeing some “positive signs” from Asia, including two recent orders in for simulators in China and one from Singapore.

CAE shares extended their losses to hit the day’s low of C$14.93, down 12% on the day, by Monday afternoon. (Reporting By Allison Lampert Editing by Denny Thomas and Franklin Paul)