Power Corporation of Canada Reports 2012 Third Quarter Financial Results and Dividends

Power Corporation of Canada Reports 2012 Third Quarter Financial Results and 
Dividends 
Readers are referred to the sections entitled "Forward-Looking Statements" and 
"Non-IFRS Financial Measures" at the end of thisrelease. 
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 $911million 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 $62million in the nine-month 
period ended September 30, 2012, compared with a net contribution of 
$71million 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 $9million 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 ($30million) and the disposal of 
its interest in Arkema ($28 million), as previously disclosed. These gains 
were partially offset by an impairment charge of $36million on the 
Corporation's investment in CITIC Pacific Limited (CITIC Pacific) recorded in 
the third quarter. 
Other items for the nine-month period ended September30,2011 represented a 
net charge of $150million 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 ($87million) 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 $48million in the quarter ended 
September 30, 2012, compared with a net contribution of $64million in the 
corresponding period in 2011. 
Other items represented a charge of $36 million in the three-month period 
ended September30, 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 $204million 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 
$1,280million 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 $68million 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 ($46million) 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 ($17million), 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 
$1,348million or $1.90 per share, compared with $1,189 million or $1.68 per 
share in the corresponding period in2011. 
For the quarter ended September 30, 2012, Power Financial reported operating 
earnings attributable to common shareholders of $460million or $0.65 per 
share, compared with $428million 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 $312million 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|RECORD DATE      |PAYMENT DATE    |AMOUNT            |
|SYMBOL        |                 |                |                  |
|______________|_________________|________________|__________________|
|              |                 |                |At a floating rate|
|              |                 |                |equal to one      |
|              |                 |                |quarter of 70% of |
|              |                 |                |the average prime |
|              |                 |                |rate of two major |
|1986 Series - |                 |                |Canadian chartered|
|POW.PR.F      |December 21, 2012|January 15, 2013|banks( [1])       |
|______________|_________________|________________|__________________|
|Series A -    |December 21, 2012|January 15, 2013|35¢               |
|POW.PR.A      |                 |                |                  |
|______________|_________________|________________|__________________|
|Series B -    |December 21, 2012|January 15, 2013|33.4375¢          |
|POW.PR.B      |                 |                |                  |
|______________|_________________|________________|__________________|
|Series C -    |December 21, 2012|January 15, 2013|36.25¢            |
|POW.PR.C      |                 |                |                  |
|______________|_________________|________________|__________________|
|Series D -    |December 21, 2012|January 15, 2013|31.25¢            |
|POW.PR.D      |                 |                |                  |
|______________|_________________|________________|__________________|
|Series G -    |December 21, 2012|January 15, 2013|35¢               |
|POW.PR.G      |                 |                |                  |
|______________|_________________|________________|__________________| 
([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   September                  
                        30,         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            28         159            (19)              93
  investments                                            

  Operating and        (90)        (88)            (29)            (29)
  other expenses                                         

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          1.61        1.98            0.52            0.73
  earnings                                               

  - non-operating      0.02      (0.32)          (0.08)          (0.32)
  earnings                                               

  - 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   September   September 30,
                     30,         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        (36)                                        (72)
  charge on
  CITIC
  Pacific                       (72)            (36)  
                       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.



Mr. Stéphane Lemay Vice-President, General Counsel and Secretary 514-286-7400

SOURCE: Power Corporation of Canada

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/14/c7765.html

CO: Power Corporation of Canada
ST: Quebec
NI: FIN ERN DIV 

-0- Nov/14/2012 21:34 GMT