Business News
May 9, 2008TORONTO - The Toronto stock market was little changed late Friday morning as energy stocks stepped back despite higher oil prices while the market found buoyancy from the financial sector despite more jarring news from the U.S. insurer American International Group Inc.
Investors took in numbers that showed continued job creation during April.
LONGUEUIL, Que - Only hours after confirming his decision to block a controversial foreign takeover of part of MacDonald Dettwiler and Associates Ltd. (TSX:MDA), federal Industry Minister Jim Prentice announced a major contract Friday between the company and the Canadian Space Agency.
In a speech at the space agency in the Montreal area, Prentice said the government has awarded a four-year $109 million contract extension for the Vancouver company, also known as MDA.
VANCOUVER - Ottawa's confirmation it will block the $1.3-billion sale of MacDonald Dettwiler and Associates Ltd.'s (TSX:MDA) space division, coupled with a slowdown in the real estate sector where the company concentrates its other business, spells tough times ahead for the Vancouver-based firm, analysts say.
Some have slapped a "sell" rating on the stock, believing MDA's future has dimmed, while others said the company has a strong balance sheet and will simply have to tread water until it can update its business plan.
OTTAWA - The Canadian economic engine is showing signs of sputtering in the face of stiffening headwinds from the U.S. slump and ongoing tight credit conditions.
Two key economic indicators Friday - unemployment and merchandise trade - painted a picture of a somewhat resilient economy that is mostly succeeding in avoiding the outright contraction occurring in the United States, but just barely.
NEW YORK - Oil rose above US$126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member.
Gasoline prices, meanwhile, rose above an average $3.67 a gallon - or 96.6 cents US a litre - at the pump, following oil's recent path higher.
TORONTO - GMP Capital Trust (TSX:GMP.UN) should be well-positioned for growth in future quarters, given its strong balance sheet, CEO Kevin Sullivan told unitholders Friday after the investment house reported an 18 per cent drop in first-quarter revenue in "challenging market conditions."
While the GMP team was disappointed with the quarter, especially considering the record income it generated in the same period last year, Sullivan told the company's annual meeting "we are relatively pleased with this quarter... given the difficult market environment experienced by all investment dealers."
CALGARY - Canadian Pacific Railway Ltd. (TSX:CP) is taking steps to make sure grain and other high-demand commodities flow more smoothly across the continent, the company's chief executive said Friday.
Fred Green said the railway "took away some learnings" from the past few quarters, which were beset by weather delays and other operational challenges.
CALGARY - Enerplus Resources Fund (TSX:ERF.UN), a Calgary-based oil and gas trust, reports its first quarter profits rose to $121.4 million from $107.9 million on higher output and impact of Focus Energy Trust acquisition.
The company also said it has decided to sell its stake in the Joslyn oilsands project in Northern Alberta, a development controlled and operated by French oil and gas giaant Total.
MONTREAL - Aeroplan Income Fund (TSX:AER) plans to reorganize from an income trust into a "growth-oriented, dividend-paying" public corporation, the loyalty program operator announced Friday.
Aeroplan said it expects its dividend will initially be 12.5 cents per share quarterly, 50 cents annually, compared with its current annualized payout of 84 cents per unit.
TORONTO - The chief executive of Agnico-Eagle Mines Ltd. (TSX:AEM) says the mid-tier miner is poised for strong growth this year as more projects come on stream alongside an anticipated return to climbing gold prices.
Sean Boyd told shareholders Friday that the company is on track with its plan to increase production and reserves as four of its mines begin production. The company poured its first gold at the Goldex mine this week, a mine he says "is going to be a big money-maker."
MONTREAL - Power Corporation of Canada (TSX:POW) is raising its quarterly dividend by 20 per cent, the holding company announced Friday along with its first-quarter financial report, which included higher net income despite lower investment gains
The dividend to be paid on Power Corp.'s participating preferred and subordinate voting shares will rise by 4.875 cents per share to 29 cents per share per quarter, or $1.16 on an annualized basis.
MONTREAL - Gaz Metro Limited Partnership (TSX:GZM.UN), Quebec's largest natural gas distributor, reported higher net profits in the latest quarter as the company generated higher revenues and one-time gains.
Gaz Metro said Friday it earned $120.1 million, or $1 per unit for the fiscal 2008 second quarter ended March 31. That compared with earnings of $104.3 million or 86 cents a unit for the same 2007 period.
TORONTO - Canadians need to become more involved in global issues and make their voices heard, RIM (TSX:RIM) co-chief executive Jim Balsillie said Thursday night.
Balsillie, who is himself quite active in social issues, says the world is willing to listen to Canada if it were to make itself heard.
WASHINGTON - U.S. Democrats' plans to help hundreds of thousands of homeowners struggling with rising subprime mortgage rates and plummeting house values could be sidetracked by President Bush's threatened veto and the opposition of many congressional Republicans.
Opponents of the plan say more prudent homebuyers and renters shouldn't be called upon to bail out borrowers who gambled on ever-rising housing prices and lost.
HALIFAX - Canadians should expect to pay more for food given the increase in commodity and fuel costs worldwide, the CEO of fish processor High Liner Foods Inc. (TSX:HLF) said Friday.
"Frankly, Canada has been in a bubble from all this stuff," said Henry Demone as the seafood company released its 2007 results and 2008 first-quarter figures in advance of the annual shareholders' meeting.
TORONTO - Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG) is continuing its wealth-management expansion with a deal to take over National Financial Corp., whose operations include Aegon Dealer Services Canada, Money Concepts (Canada) and National Financial Insurance Agency.
Industrial Alliance did not disclose the terms of the transaction with the Canadian unit of Dutch insurer Aegon Group. The deal announced Friday is the 13th takeover in the Quebec City-headquartered company's drive into the wealth-management business in recent years.
CALGARY - Crescent Point Energy Trust (TSX:CPG.UN) posted a first-quarter loss of $41.5 million on Friday, reversing year-ago profit of $157.5 million.
The Calgary-based trust's funds from operations were $155.7 million, up from $72.9 million.
OTTAWA - Canada's merchandise trade surplus with the world expanded for the third straight month in March as exports grew and imports declined.
The trade surplus jumped to $5.5 billion, its highest level since May 2007.
