TORONTO — Canadian corporate profits have declined in five of the past six quarters and are now 16% below their post-recession peak in late 2011, according to a study released Tuesday by TD Bank.
“This decline is not as bad as during the last recession, but it is approaching the performance Canadian firms saw during the U.S. downturn in 2000-2001,” TD economist Leslie Preston writes.
Key export-driven sectors like manufacturing and resources have seen the most weakness.
While Ottawa agreed in Budget 2013 to extend tax breaks for manufacturers for two years, a request by developers of liquefied natural gas terminals on Canada’s West Coast to receive similar tax savings fell on deaf ears.
Before they start crying foul that the West’s energy industry is being shortchanged relative to the Eastern-based manufacturing sector, developers of the new projects should be reminded that their ask showed poor judgment in the first place.
The business of salvaging distressed companies itself is in desperate need of rescue.
Consider that insolvency practitioners — lawyers, accountants, consultants and the like — in Canada, the U.S. and the U.K. have pocketed $837-million in professional fees and disbursements since Nortel Networks Corp. filed for court protection from creditors in January, 2009. And the tab is still running.
MONTREAL – Sometimes compared with legendary U.S. investor Warren Buffett because of the similarities between their publicly traded investment firms, Paul Desmarais Sr. began to play the corporate takeover game long before the leveraged buyouts and hostile raids became commonplace in the 1980s. Unlike the messy and sometimes very public fights of his contemporaries, his acquisitions were done quietly and diplomatically — a style he carried until his last days.
OTTAWA • Even before the federal government delivers its 2013 budget, the writing is already on the wall: Limited economic growth, slower household spending and the same old rock-bottom interest rates.
West Fraser Timber (WFTBF.PK)
Q3 2012 Earnings Call
October 30, 2012 11:30 am ET
Henry H. Ketcham - Chairman and Chief Executive Officer
Larry S. Hughes - Chief Financial Officer and Vice President of Finance
Peter A. Rippon - Vice-President of Pulp and Energy
Christopher D. McIver - Vice-President of Lumber Sales and Corporate Development
Edward R. Seraphim - President and Chief Operating Officer
The news about the timely death of what's-his-face has dominated American TV, so you may be excused for failing to notice that Canada had a big national election yesterday, and that the results of that election provided further proof that, when it comes to trade and tax policy, Canada is putting its southern neighbor to shame:
Kurt Wulff (McDep Associates) submits: Canada offers some of the world’s most accessible, large scale resource opportunities that investors can capture in two pure play buy recommendations – Encana (ECA) in natural gas and Canadian Oil Sands Trust (