Flight simulator maker CAE Inc. of Montreal announced Wednesday a series of military contracts worth more than $100 million.

The contracts will see it provide a variety of services to such defence industry heavyweights as Eurocopter, Airbus Military and L-3 Communications.

CAE Inc. flight simulators at the Aviation Training Centre in Toronto. The company announced Wednesday it had signed contracts worth $100 million with a variety of defence industry heavyweights. (Aaron Harris/Canadian Press)

Specific financial details of the contracts were not disclosed.

Among other jobs, CAE said it will upgrade 40 CH-53 helicopters for the German army in the Eurocopter deal, and the pact with Airbus will see it provide transport training devices to the United Arab Emirates and the Royal Saudi Air Force.

The L-3 Communications deal consists of a one-year contract to provide avionics software upgrades, integrated logistics support and data management services for Canadian Forces CF-18 aircraft.

CAE has moved to bolster its military presence in a bid to diversify its operations. With civil aviation hurt by the economic slowdown and global financial crunch, the military side of the business has gained prominence in terms of revenues and profit.

In the first fiscal quarter of 2010, military revenues increased to 48.3 per cent of CAE's total sales, up from 43.6 per cent for all of fiscal 2009.

Additional contracts expected

CAE is widely expected to win additional military contracts in coming months involving such programs as maritime patrol and search-and-rescue, along with a contract with Boeing for 15 Chinook heavy-lift helicopters that could be worth about $300 million to CAE.

The climate for military orders in Canada is also strengthened by political interest in the Far North.

"When you see every leader of every political party head into the North talking about sovereignty, they've got to put something up there," CIBC World Markets analyst Chris Murray said in reference to the heightened military presence.

"One of our strategic priorities has been to establish close relationships with major defence prime contractors and original equipment manufacturers," Martin Gagne, president of CAE's simulation products group, said in a statement.

3-month stock chart for CAE Inc. (CBC)

"Contracts with Eurocopter on major upgrades to the German CH-53 training systems and Airbus Military on two A330 tanker programs are perfect examples of CAE working closely with prime contractors to support military forces around the world."

CAE employs more than 6,500 people at more than 90 sites and training locations in 20 countries. The company has revenue in excess of $1.6 billion annually.

With files from The Canadian Press