06:00 PM EDT, 05/21/2024 (MT Newswires) -- CAE (CAE) late Tuesday said it will record a $568 million non-cash goodwill impairment charge in its fiscal Q4 results as part of a broader "re-baselining" of its defense business to reflect recent adjustments to eight fixed-price contracts.

The Montreal-based defense and aviation contractor will book a $90.3 million negative adjustment to its legacy contracts, in addition to a $35.7 million impairment charge for related technology and other non-financial assets.

CAE also appointed Nick Leontidis as chief operating officer. Leontidis had been group president of CAE's civil aviation business. He will now be responsible for both civil and defense businesses.

The company also provided preliminary fiscal Q4 2024 results, expecting adjusted net income of CA$0.37 per share, excluding the impact of the legacy defense contract, compared with CA$0.33 during the prior year. Capital IQ consensus is for CA$0.42.

Revenue declined to CA$1.13 billion in the quarter ended March 31 from CA$1.20 billion a year ago. Analysts expect CA$1.29 billion.

CAE will report its Q4 results on May 27. Shares were down over 6% in after-hours activity.

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