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Power Corporation of Canada Reports 2013 Second Quarter and Six-Month Financial Results and Dividends


Power Corporation of Canada Reports 2013 Second Quarter and Six-Month Financial Results and Dividends

Readers are referred to the sections entitled "Non-IFRS Financial Measures" and "Forward-Looking Statements" at the end of this release.

WINNIPEG, Aug. 2, 2013 /CNW Telbec/ - Power Corporation of Canada (TSX: POW) today reported earnings results for the second quarter and six months ended June 30, 2013.

SECOND QUARTER RESULTS

Operating earnings attributable to participating shareholders, a non-IFRS financial measure, for the quarter ended June 30, 2013 were $260 million or $0.56 per share, compared with $287 million or $0.62 per share in the corresponding period in 2012.

Subsidiaries contributed $289 million to Power Corporation's operating earnings, compared with $291 million in the same period in 2012. Results from corporate activities were a net charge of $16 million, compared with a contribution of $9 million in the corresponding period in 2012.

Other items, not included in operating earnings, represented a net charge of $14 million. Power Corporation's share of other items at Power Financial Corporation (Power Financial), a subsidiary, was a contribution of $7 million. Other items also included an impairment charge of $21 million on the Corporation's investment in CITIC Pacific. In the corresponding quarter of 2012, other items represented a charge of $10 million. Additional details on other items can be found in the sections entitled "Results of Power Financial" and "Earnings Summary" below.

Net earnings attributable to participating shareholders were $246 million or $0.53 per share, compared with $277 million or $0.60 per share in the corresponding period in 2012.

SIX-MONTH RESULTS

Operating earnings attributable to participating shareholders for the six months ended June 30, 2013 were $507 million or $1.10 per share, compared with $492 million or $1.07 per share in the corresponding period in 2012, an increase of 2.9% on a per share basis.

Other items, not included in operating earnings, resulted in a net charge of $36 million, compared with a contribution of $45 million in the corresponding period in 2012.

Net earnings attributable to participating shareholders were $471 million or $1.02 per share, compared with $537 million or $1.17 per share for the same period in 2012.

RESULTS OF POWER FINANCIAL

Power Financial reported operating earnings attributable to common shareholders for the quarter ended June 30, 2013 of $464 million or $0.65 per share, compared with $444 million or $0.63 per share in the corresponding period in 2012.

For the six months ended June 30, 2013, Power Financial reported operating earnings attributable to common shareholders of $871 million or $1.22 per share, compared with $815 million or $1.15 per share in the corresponding period in 2012.

Other items, not included in operating earnings, in the second quarter of 2013 resulted in a contribution of $11 million and were mainly composed of Power Financial's share of the gain recorded by Pargesa Holding SA in connection with its subsidiary Groupe Bruxelles Lambert's partial disposal of its interest in GDF Suez. For the quarter ended June 30, 2012, other items at Power Financial were a net charge of $15 million. Other items in the six-month period ended June 30, 2013 were a net charge of $2 million, compared with a contribution of $68 million in the corresponding period in 2012.

Net earnings attributable to common shareholders for the quarter ended June 30, 2013 were $475 million or $0.67 per share, compared with $429 million or $0.61 per share in the corresponding quarter of 2012.

For the six months ended June 30, 2013, net earnings attributable to common shareholders were $869 million or $1.22 per share, compared with $883 million or $1.25 per share for the same period in 2012.

At June 30, 2013, Power Corporation held a 65.8% economic interest in Power Financial. Power Financial's contribution to Power Corporation's operating earnings was $305 million for the quarter ended June 30, 2013, compared with $293 million in the same period in 2012. For the six months ended June 30, 2013, Power Financial contributed $573 million to Power Corporation's operating earnings, compared with $538 million for the same period in 2012.

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 | | | | | | |1986 Series - |September 24, 2013|October 15, 2013|70% of the average| |POW.PR.F | | |prime rate of two | | | | | | | | | |major Canadian | | | | |chartered banks( | | | | |[1]) | |______________|__________________|________________|__________________| |Series A - |September 24, 2013|October 15, 2013|35¢ | |POW.PR.A | | | | |______________|__________________|________________|__________________| |Series B - |September 24, 2013|October 15, 2013|33.4375¢ | |POW.PR.B | | | | |______________|__________________|________________|__________________| |Series C - |September 24, 2013|October 15, 2013|36.25¢ | |POW.PR.C | | | | |______________|__________________|________________|__________________| |Series D - |September 24, 2013|October 15, 2013|31.25¢ | |POW.PR.D | | | | |______________|__________________|________________|__________________| |Series G - |September 24, 2013|October 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 quarterly dividend of 29 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable September 30, 2013 to shareholders of record on September 9, 2013.

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.

ABOUT POWER CORPORATION

Power Corporation of Canada is a diversified international management and holding company with interests in companies in the financial services, communications and other business sectors in North America, Europe and Asia. To learn more, visit www.powercorporation.com.


                                         EARNINGS SUMMARY

(unaudited)            Six months ended        Three months ended  
                    June 30,   June 30,       June 30,   June 30,
                        2013       2012 ((1))     2013       2012 ((1))

Contribution to                                         
operating earnings
from subsidiaries (
(2))                     548        531            289        291  

Results from                                            
corporate
activities                                                         

  Income from                                           
  investments             45         47             14         39  

  Operating and                                         
  other expenses        (60)       (61)           (30)       (30)  

Dividends on                                            
non-participating
shares                  (26)       (25)           (13)       (13)  

Operating earnings                                      
attributable to
participating
shareholders             507        492            260        287  

Other items (see                                        
below)                  (36)         45           (14)       (10)  

Net earnings                                            
attributable to
participating
shareholders             471        537            246        277  

Earnings per share                                      
(attributable to
participating
shareholders)                                                      

  - operating                                           
  earnings              1.10       1.07           0.56       0.62  

  - non-operating                                       
  earnings            (0.08)       0.10         (0.03)     (0.02)  

  - net earnings        1.02       1.17           0.53       0.60  
                                                OTHER ITEMS

(unaudited)            Six months ended        Three months ended  
                    June 30,   June 30,       June 30,   June 30,
                        2013       2012           2013       2012  

Power Corporation's                                     
share of Power
Financial's other
items:                                                             

  IGM                               (3)                       (3)  

  Pargesa                (2)         48              7        (7)  
                         (2)         45              7       (10)  

Impairment charge                                       
on CITIC Pacific        (21)                      (21)             

Charges recorded by                                     
Square Victoria
Communications
Group                   (13)                                       
                        (36)         45           (14)       (10)

(1) Effective January 1, 2013, the Corporation adopted revised IAS 19
    (IAS 19R), Employee Benefits. In accordance with the required
    transitional provisions, the Corporation retrospectively applied
    the revised standard. The 2012 comparative financial information in
    this news release has been restated accordingly.

(2) Includes Power Financial and other subsidiaries of the Corporation.

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 classified 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
        and jointly controlled corporations and associates.

However, management uses these financial measures 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.

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 previous 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.

 

 

SOURCE Power Corporation of Canada

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

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2013/02/c3211.html

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

-0- Aug/02/2013 17:56 GMT

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