Canaccord Genuity Suspends Dividend, Announces Staff Reductionsby
Quarterly loss surges on charge, missing analyst estimates
Daviau sees `significant progress' in slimming business
Canaccord Genuity Group Inc.suspended its quarterly dividend and said it’s cutting 125 jobs, or 7 percent of its workforce, as it announced a third-quarter loss hampered by a C$321 million ($231 million) impairment charge in its capital-markets business.
The net loss in the period ended Dec. 31 widened to C$346.4 million, or C$3.91 a share, from C$21.5 million, or 27 cents, a year earlier, the Toronto-based firm said Thursday in a statement. Canaccord said the loss excluding some items was 25 cents a share, compared with the break-even estimate of five analysts surveyed by Bloomberg.
Chief Executive Officer Dan Daviau, who took over the top job at Canada’s largest non-bank brokerage in October, said on Nov. 5 that he has a “strong appetite" to cut costs. He has already pared jobs in sales, trading and research amid a U.S. reorganization, realigned the Canadian capital markets business and parted ways with longtime executives.
“We are making significant progress to reposition our business, with a strategy that is centered around improving our operational efficiencies and better aligning our core strengths, so that we can return to profitability,” Daviau said in the statement.
Canaccord shares fell 6.2 percent in Toronto trading to C$3.77, a seven-year low. The stock has fallen 26 percent this year.