Stock Name: POW
Amount: CAD 0.29
Announcement Date: 14/11/2012
Record Date: 06/12/2012
Dividend Detail:
Readers are referred to the sections entitled "Forward-Looking
Statements" and "Non-IFRS Financial Measures" at the end of
this��release.
TORONTO, Nov. 14, 2012 /CNW Telbec/ - Power Corporation of Canada (TSX:
POW) today reported operating earnings attributable to participating
shareholders for the nine-month period ended September 30, 2012 of $741
million or $1.61 per share, compared with $911��million or $1.98 per
share in the corresponding period in 2011.
Subsidiaries contributed $840 million to Power Corporation's operating
earnings for the nine-month period ended September 30, 2012, compared
with $871 million in the same period in 2011, a decrease of 3.6%.
Results from corporate activities were a net charge of $62��million in
the nine-month period ended September 30, 2012, compared with a net
contribution of $71��million in the corresponding period in 2011. The
variation in the results from corporate activities is due to higher
income from investments in 2011.
For the nine-month period ended September 30, 2012, other items
represented a contribution of $9��million mainly composed of the
Corporation's share of the gains realized by Groupe Bruxelles Lambert
in the first quarter on the partial disposal of its interest in Pernod
Ricard ($30��million) and the disposal of its interest in Arkema ($28
million), as previously disclosed. These gains were partially offset by
an impairment charge of $36��million on the Corporation's investment in
CITIC Pacific Limited (CITIC Pacific) recorded in the third quarter.
Other items for the nine-month period ended September��30,��2011
represented a net charge of $150��million and included a previous
write-down of the Corporation's investment in CITIC Pacific for an
amount of $72 million and the Corporation's share ($87��million) of
Pargesa Holding SA's (Pargesa) impairment charge recorded in the third
quarter on its indirect investment in Lafarge SA (Lafarge).
Taking into account these other items, net earnings attributable to
participating shareholders for the nine-month period ended September
30, 2012 were $750 million or $1.63 per share, compared with $761
million or $1.66 per share in the corresponding period in 2011.
THIRD QUARTER RESULTS
For the quarter ended September 30, 2012, operating earnings
attributable to participating shareholders were $240 million or $0.52
per share, compared with $337 million or $0.73 per share in the
corresponding period in 2011.
Power Corporation's share of operating earnings from its subsidiaries
was $300 million for the three-month period ended September 30, 2012,
compared with $284 million for the same period in 2011, an increase of
5.6%. Corporate activities represented a net charge of $48��million in
the quarter ended September 30, 2012, compared with a net contribution
of $64��million in the corresponding period in 2011.
Other items represented a charge of $36 million in the three-month
period ended September��30, 2012, compared with a net charge of $148
million the corresponding period of 2011, as described above.
As a result, net earnings attributable to participating shareholders for
the quarter ended September 30, 2012 were $204��million or $0.44 per
share, compared with $189 million or $0.41 per share in the
corresponding period in 2011.
RESULTS OF POWER FINANCIAL CORPORATION
Power Financial Corporation reported operating earnings attributable to
common shareholders for the nine-month period ended September 30, 2012
of $1,280��million or $1.80 per share, compared with $1,307 million or
$1.84 per share in the corresponding period in 2011.
For the nine-month period ended September 30, 2012, other items
represented a net contribution of $68��million mainly composed of Power
Financial's share of the gains realized by Groupe Bruxelles Lambert in
the first quarter on the partial disposal of its interest in Pernod
Ricard ($46��million) and the disposal of its interest in Arkema ($43
million), as previously disclosed. These gains were partially offset in
the second quarter by Power Financial's share ($4 million) of a
non-cash income tax charge recorded by IGM Financial Inc. resulting
from increases in Ontario corporate income tax rates and Power
Financial's share of non-operating earnings of Pargesa ($17��million),
mainly composed of a charge for goodwill impairment and restructuring
charges recorded by Lafarge.
For the nine-month period ended September 30, 2011, other items
represented a net charge of $118 million and consisted mainly of Power
Financial's share ($133 million) of Pargesa's impairment charge
recorded in the third quarter on its indirect investment in Lafarge.
Consequently, net earnings attributable to common shareholders of Power
Financial for the nine-month period ended September 30, 2012 were
$1,348��million or $1.90 per share, compared with $1,189 million or
$1.68 per share in the corresponding period in��2011.
For the quarter ended September 30, 2012, Power Financial reported
operating earnings attributable to common shareholders of $460��million
or $0.65 per share, compared with $428��million or $0.60 per share in
the third quarter of 2011.
For the three-month period ended September 30, 2012, there were no other
items, compared with a net charge of $116 million in the corresponding
period in 2011.
As a result, net earnings attributable to common shareholders of Power
Financial for the quarter ended September 30, 2012 were $460 million or
$0.65 per share, compared with $312��million or $0.44 per share in the
corresponding period in 2011.
DIVIDENDS ON NON-PARTICIPATING PREFERRED SHARES
The Board of Directors today declared quarterly dividends on the
Corporation's preferred shares, as follows:
SERIES - STOCK SYMBOL | RECORD DATE | PAYMENT DATE | AMOUNT |
1986 Series - POW.PR.F | December 21, 2012 | January 15, 2013 | At a floating rate equal to one quarter of 70% of the average prime rate of two major Canadian chartered banks [1] |
Series A - POW.PR.A | December 21, 2012 | January 15, 2013 | 35�� |
Series B - POW.PR.B | December 21, 2012 | January 15, 2013 | 33.4375�� |
Series C - POW.PR.C | December 21, 2012 | January 15, 2013 | 36.25�� |
Series D - POW.PR.D | December 21, 2012 | January 15, 2013 | 31.25�� |
Series G - POW.PR.G | December 21, 2012 | January 15, 2013 | 35�� |
[1] In accordance with the articles of the Corporation |
�� |
DIVIDENDS ON PARTICIPATING SHARES
The Board of Directors also declared a dividend of 29 cents per share on
the Participating Preferred and Subordinate Voting Shares of the
Corporation, payable December 31, 2012 to shareholders of record
December 10, 2012.
For purposes of the Income Tax Act (Canada) and any similar provincial legislation, all of the above
dividends on the Corporation's preferred shares (including the
Participating Preferred Shares) and Subordinate Voting Shares are
eligible dividends.
SUPPLEMENTARY INFORMATION
EARNINGS SUMMARY - CONDENSED SUPPLEMENTARY STATEMENTS OF EARNINGS
The following table shows a reconciliation of non-IFRS[1] financial measures used herein for the periods indicated, with the
reported results in accordance with IFRS for net earnings attributable
to participating shareholders and earnings per share.
�� | �� | �� | �� | �� | �� | �� | �� | |
�� | Nine months ended | �� | Three months ended | |||||
�� | September 30, | �� | September 30, | �� | September 30, | �� | September 30, | |
�� | 2012 | �� | 2011 | �� | 2012 | �� | 2011 | |
Contribution to operating earnings from subsidiaries | 840 | �� | 871 | �� | 300 | �� | 284 | |
Results from corporate activities | �� | �� | �� | �� | �� | �� | �� | |
�� | Income from investments | 28 | �� | 159 | �� | (19) | �� | 93 |
�� | Operating and other expenses | (90) | �� | (88) | �� | (29) | �� | (29) |
Dividends on non-participating shares | (37) | �� | (31) | �� | (12) | �� | (11) | |
Operating earnings attributable to participating shareholders | 741 | �� | 911 | �� | 240 | �� | 337 | |
Other items | 9 | �� | (150) | �� | (36) | �� | (148) | |
Net earnings attributable to participating shareholders | 750 | �� | 761 | �� | 204 | �� | 189 | |
Earnings per share (attributable to participating shareholders) | �� | �� | �� | �� | �� | �� | �� | |
�� | - operating earnings | 1.61 | �� | 1.98 | �� | 0.52 | �� | 0.73 |
�� | - non-operating earnings | 0.02 | �� | (0.32) | �� | (0.08) | �� | (0.32) |
�� | - net earnings | 1.63 | �� | 1.66 | �� | 0.44 | �� | 0.41 |
OTHER ITEMS
The following table provides details on other items for the periods
indicated:
�� | �� | �� | �� | |||||
�� | Nine months ended | �� | Three months ended | |||||
�� | September 30, | �� | September 30, | �� | September 30, | �� | September 30, | |
�� | 2012 | �� | 2011 | �� | 2012 | �� | 2011 | |
Power Corporation's share of other items of | �� | �� | �� | �� | �� | �� | �� | |
�� | IGM | (3) | �� | 11 | �� | �� | �� | 11 |
�� | Pargesa | 48 | �� | (89) | �� | �� | �� | (87) |
Other | �� | �� | �� | �� | �� | �� | �� | |
�� | Impairment charge on CITIC Pacific | (36) | �� | (72) | �� | (36) | �� | (72) |
�� | 9 | �� | (150) | �� | (36) | �� | (148) | |
[1] IFRS refers to International Financial Reporting Standards. | ||||||||
Forward-Looking Statements
Certain statements in this News Release, other than statements of
historical fact, are forward-looking statements based on certain
assumptions and reflect the Corporation's current expectations, or with
respect to disclosure regarding the Corporation's public subsidiaries,
reflect such subsidiaries' disclosed current expectations.
Forward-looking statements are provided for the purposes of assisting
the reader in understanding the Corporation's financial performance,
financial position and cash flows as at and for the periods ended on
certain dates and to present information about management's current
expectations and plans relating to the future and the reader is
cautioned that such statements may not be appropriate for other
purposes. These statements may include, without limitation, statements
regarding the operations, business, financial condition, expected
financial results, performance, prospects, opportunities, priorities,
targets, goals, ongoing objectives, strategies and outlook of the
Corporation and its subsidiaries, as well as the outlook for North
American and international economies for the current fiscal year and
subsequent periods. Forward-looking statements include statements that
are predictive in nature, depend upon or refer to future events or
conditions, or include words such as "expects", "anticipates", "plans",
"believes", "estimates", "seeks", "intends", "targets", "projects",
"forecasts" or negative versions thereof and other similar expressions,
or future or conditional verbs such as "may", "will", "should", "would"
and "could".
By its nature, this information is subject to inherent risks and
uncertainties that may be general or specific and which give rise to
the possibility that expectations, forecasts, predictions, projections
or conclusions will not prove to be accurate, that assumptions may not
be correct and that objectives, strategic goals and priorities will not
be achieved. A variety of factors, many of which are beyond the
Corporation's and its subsidiaries' control, affect the operations,
performance and results of the Corporation and its subsidiaries and
their businesses, and could cause actual results to differ materially
from current expectations of estimated or anticipated events or
results. These factors include, but are not limited to: the impact or
unanticipated impact of general economic, political and market factors
in North America and internationally, interest and foreign exchange
rates, global equity and capital markets, management of market
liquidity and funding risks, changes in accounting policies and methods
used to report financial condition (including uncertainties associated
with critical accounting assumptions and estimates), the effect of
applying future accounting changes, business competition, operational
and reputational risks, technological change, changes in government
regulation and legislation, changes in tax laws, unexpected judicial or
regulatory proceedings, catastrophic events, the Corporation's and its
subsidiaries' ability to complete strategic transactions, integrate
acquisitions and implement other growth strategies, and the
Corporation's and its subsidiaries' success in anticipating and
managing the foregoing factors.
The reader is cautioned to consider these and other factors,
uncertainties and potential events carefully and not to put undue
reliance on forward-looking statements. Information contained in
forward-looking statements is based upon certain material assumptions
that were applied in drawing a conclusion or making a forecast or
projection, including management's perceptions of historical trends,
current conditions and expected future developments, as well as other
considerations that are believed to be appropriate in the
circumstances, including that the list of factors in the prior
paragraph, collectively, are not expected to have a material impact on
the Corporation and its subsidiaries. While the Corporation considers
these assumptions to be reasonable based on information currently
available to management, they may prove to be incorrect.
Other than as specifically required by applicable Canadian law, the
Corporation undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which
such statement is made, or to reflect the occurrence of unanticipated
events, whether as a result of new information, future events or
results, or otherwise.
Additional information about the risks and uncertainties of the
Corporation's business and material factors or assumptions on which
information contained in forward-looking statements is based is
provided in its disclosure materials, including its most recent
Management's Discussion and Analysis and Annual Information Form, filed
with the securities regulatory authorities in Canada and available at www.sedar.com.
Non-IFRS Financial Measures
In analyzing the financial results of the Corporation and consistent
with the presentation in previous years, net earnings attributable to
participating shareholders are subdivided into the following
components:
operating earnings attributable to participating shareholders; and
other items or non-operating earnings, which include the after-tax
impact of any item that management considers to be of a non-recurring
nature or that could make the period-over-period comparison of results
from operations less meaningful, and also include the Corporation's
share of any such item presented in a comparable manner by its
subsidiaries.
Management has used these financial measures for many years in its
presentation and analysis of the financial performance of Power
Corporation, and believes that they provide additional meaningful
information to readers in their analysis of the results of the
Corporation.
Operating earnings attributable to participating shareholders and
operating earnings per share are non-IFRS financial measures that do
not have a standard meaning and may not be comparable to similar
measures used by other entities.��
��
SOURCE: Power Corporation of Canada
For further information:
Mr. St��phane Lemay
Vice-President, General Counsel and Secretary
514-286-7400
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