[ Sign up for our Health IQ newsletter for the latest coronavirus updates ]The company’s health care unit found that academic institutions and nursing schools, which make up the bulk of the division’s clients, came under lockdown protocols that hampered its ability to conclude contracts and deliver on existing orders, the company said.Total revenues dropped by a third and net income fell by 275 per cent as a result of the disruptions.
In response, the Montreal-based company announced a $100-million restructuring program that will start to yield $50 million in annual savings next year.CAE is maintaining its forecast of negative free cash flow in the first half of its fiscal year and anticipates it will turn positive in the second half.