Power Corporation of Canada Reports Fourth Quarter and 2013 Financial Results and Dividends

 Power Corporation of Canada Reports Fourth Quarter and 2013 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.  MONTREAL, March 19, 2014 /CNW Telbec/ - Power Corporation of Canada (TSX: POW)  today reported earnings results for the fourth quarter and the year ended  December 31, 2013.  FOURTH QUARTER RESULTS  Operating earnings attributable to participating shareholders (a non-IFRS  financial measure) for the quarter ended December 31, 2013 were $218 million  or $0.47 per share, compared with $219 million or $0.48 per share in 2012.  Excluding the impact of acquisition and restructuring costs associated with  the Irish Life Group Limited (Irish Life) acquisition by Great-West Lifeco  Inc. (Lifeco), a subsidiary of Power Financial, and mark-to-market losses on  macro capital hedges, operating earnings attributable to participating  shareholders were $259 million or $0.56 per share, compared with $219 million  or $0.48 per share in 2012.  Other items, not included in operating earnings, represented a contribution of  $82 million. Other items included the Corporation's share of other items at  Power Financial as well as charges related to Square Victoria Communications  Group Inc., a subsidiary of the Corporation, for an amount of $43 million,  which comprised a one-time cash payment related to new terms and conditions of  the contract to print the La Presse newspaper. In 2012, other items  represented a net charge of $140 million. Additional details on other items  can be found in this news release and in the section entitled "Other Items"  below.  Net earnings attributable to participating shareholders were $300 million or  $0.65 per share, compared with $79 million or $0.18 per share in 2012.  2013 RESULTS  For the year ended December 31, 2013, operating earnings attributable to  participating shareholders were $959 million or $2.08 per share, compared with  $947 million or $2.06 per share in 2012.  Excluding the impact of acquisition and restructuring costs associated with  the Irish Life acquisition and mark-to-market losses on macro capital hedges,  operating earnings attributable to participating shareholders were $1,035  million or $2.24 per share.  Other items, not included in operating earnings, were a contribution of $18  million. In addition to the items discussed above, other items in 2013  included a restructuring provision and impairment charges recorded by Square  Victoria Communications Group Inc. Other items represented a net charge of  $131 million in 2012.  Net earnings attributable to participating shareholders were $977 million or  $2.12 per share, compared with $816 million or $1.78 per share in 2012.  RESULTS OF POWER FINANCIAL CORPORATION  FOURTH QUARTER RESULTS  Power Financial reported operating earnings attributable to common  shareholders for the quarter ended December 31, 2013 of $403 million or $0.57  per share, compared with $405 million or $0.57 per share in 2012.  Other items, not included in operating earnings, were a contribution of $190  million, and were mainly comprised of a litigation provision recovery reported  by Lifeco, and the share of Pargesa's gain recorded by Groupe Bruxelles  Lambert on the partial disposal of its investment in Total SA. In 2012, other  items were a net charge of $128 million.  Net earnings attributable to common shareholders were $593 million or $0.84  per share, compared with $277 million or $0.39 per share in 2012.  2013 RESULTS  Operating earnings attributable to common shareholders for the year ended  December 31, 2013 were $1,708 million or $2.40 per share, compared with $1,678  million or $2.37 per share in 2012.  Other items, not included in operating earnings, were a contribution of $188  million. Other items were a net charge of $60 million in 2012.  Net earnings attributable to common shareholders were $1,896 million or $2.67  per share, compared with $1,618 million or $2.29 per share in 2012.  At December 31, 2013, Power Corporation held a 65.8% economic interest in  Power Financial. Power Financial's contribution to Power Corporation's  operating earnings was $265 million for the quarter ended December 31, 2013,  compared with $268 million in 2012. For the year ended December 31, 2013,  Power Financial's contribution to Power Corporation's operating earnings was  $1,124 million, compared with $1,108 million in 2012.  DIVIDENDS ON NON-PARTICIPATING PREFERRED SHARES  On February 19, 2014, as previously disclosed, the Board of Directors declared  quarterly dividends on the Corporation's preferred shares, as follows:         ____________________________________________________________________     |SERIES - STOCK     |RECORD DATE   |  PAYMENT DATE|AMOUNT            |     |SYMBOL             |              |              |                  |     |___________________|______________|______________|__________________|     |1986 Series -      |March 25, 2014|April 15, 2014|At a floating rate|     |POW.PR.F           |              |              |equal to one      |     |                   |              |              |quarter of 70% of |     |                   |              |              |the average prime |     |                   |              |              |rate of two major |     |                   |              |              |Canadian chartered|     |                   |              |              |banks[1]          |     |___________________|______________|______________|__________________|     |Series A - POW.PR.A|March 25, 2014|April 15, 2014|35¢               |     |___________________|______________|______________|__________________|     |Series B - POW.PR.B|March 25, 2014|April 15, 2014|33.4375¢          |     |___________________|______________|______________|__________________|     |Series C - POW.PR.C|March 25, 2014|April 15, 2014|36.25¢            |     |___________________|______________|______________|__________________|     |Series D - POW.PR.D|March 25, 2014|April 15, 2014|31.25¢            |     |___________________|______________|______________|__________________|     |Series G - POW.PR.G|March 25, 2014|April 15, 2014|35¢               |     |___________________|______________|______________|__________________|     [1] In accordance with the articles of the Corporation  DIVIDENDS ON PARTICIPATING SHARES  On February 19, 2014, as previously disclosed, 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  March 31, 2014 to shareholders of record March 10, 2014.  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.                                           EARNINGS SUMMARY     (unaudited)       Twelve months ended            Three months ended                       December   December                                             31,        31,   December 31,   December 31,                           2013       2012           2013           2012     Contribution to                                            operating     earnings from:                                                            Power Financial    1,124      1,108            265            268       Other                                                      subsidiaries        (76)       (16)           (32)            (2)                          1,048      1,092            233            266     Results from                                               corporate     activities                                                                Income from                                                investments           88         27             32            (1)       Operating and                                              other expenses     (125)      (122)           (34)           (33)     Dividends on                                               non-participating     shares                (52)       (50)           (13)           (13)     Operating                                                  earnings     attributable to       participating     shareholders           959        947            218            219     Other items (see                                           below)                                                                    Power Financial      123       (39)            125           (84)       Other                                                      subsidiaries        (84)       (56)           (43)           (56)       Corporate                                                  activities of       Power       Corporation         (21)       (36)              -              -                             18      (131)             82          (140)     Net earnings                                               attributable to     participating     shareholders           977        816            300             79     Earnings per                                               share     (attributable to     participating     shareholders)                                                           - operating                                                  earnings            2.08       2.06           0.47           0.48     - non-operating                                              earnings            0.04     (0.28)           0.18         (0.30)     - net earnings        2.12       1.78           0.65           0.18                                                     OTHER ITEMS     (unaudited)       Twelve months ended          Three months ended                         December   December                                             31,        31,   December 31,   December 31,                           2013       2012           2013         2012       Power Financial:                                                          Lifeco                99       (62)             99           (62)       IGM                  (1)          4            (1)            7         Pargesa               25         19             27           (29)                            123       (39)            125           (84)     Other                                                      subsidiaries          (84)       (56)           (43)           (56)     Impairment charge                                          on CITIC Pacific     Limited               (21)       (36)              -              -                             18      (131)             82          (140)  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 as follows: • 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 its jointly  controlled corporations and associates. 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, as defined by the Corporation, helps  the reader to compare the current period's results to those of previous  periods as items of a non-recurring nature have been excluded from this  non-IFRS measure. The Corporation also uses the equity method to present and explain its  results, financial position and cash flows. This method is useful as it  isolates the corporate activities from those of operating subsidiaries and  shows their respective contributions separately. 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/March2014/19/c5930.html  CO: Power Corporation of Canada ST: Quebec NI: FIN ERN FIN