Business News

Late day gain in financial, gold stocks takes stock markets higher
TORONTO - The Toronto stock market closed slightly higher Thursday thanks to a late-day gain in financial and gold stocks that sent the S&P/TSX composite index up 18.64 points to 11,979.7. The TSX financial sector gained 0.38 per cent after the CEO of U.S. banking giant Citigroup, Vikram Pandit, said the bank was on a path toward "sustained profitability" as it sells off risky assets. The bank has been one of the hardest hit by the financial crisis so the upbeat assessment helped boost expectations about the economy. On the TSX, TD Bank (TSX:TD) rose 39 cents to $71.40.
      

Transat stock hammered after Q1 loss turns out to be deeper than expected
MONTREAL - Transat A.T. Inc. said it's model as one of Canada's largest vacation companies isn't broken even though poor results and the prospect of a loss for the key winter travel period caused its shares to plunge Thursday. Transat's class B shares (TSX:TRZ.B) fell $5.80 to close at $13.70 on the Toronto Stock Exchange, a decline of nearly 30 per cent.
      

Positive trade, housing data suggest economic recovery taking hold
TORONTO - There are more signs that the Canadian economy is getting healthier and stronger, with housing and trade data adding to recent reports that suggest a recovery is indeed taking hold. Statistics Canada reported Thursday that the country posted a trade surplus with the world of $799 million in January, compared with a surplus of $75 million in December. In separate report, the agency said the Canadian housing market remains hot and activity is expected to pick up this spring as buyers rush to the market before new mortgage rules and the HST set in.
      

Ballard en route to growth as interest in fuel cell technology heats up
Ballard Power Systems is in a strong position for growth this year as the international community becomes increasingly interested in the role fuel cells play in a clean-energy future, company officials said Thursday. President and CEO John Sheridan said the company is uniquely positioned to capitalize on the recent interest in clean energy because Ballard (TSX:BLD; Nasdaq:BLDP)offers a wide range of market applications from backup to motive power.
      

Energy industry awaits changes to Alberta's oil and gas royalty regime
CALGARY - The Alberta government is poised to make changes to the royalties it collects from oil and gas companies in the province, amendments a major U.S. energy producer says will probably shake out well for its business in Canada. Alberta Premier Ed Stelmach and Energy Minister Ron Liepert will announce the changes Thursday afternoon to the energy-rich province's royalties, the government's take from resources extracted from its land.
      

Com Dev reports Q1 profit down from year ago mark, revenue creeps up
CAMBRIDGE, Ont. - Com Dev International Ltd. (TSX:CDV) said Thursday it earned $2.2 million, down sharply from $4.4 million a year ago, as revenue crept higher. "In the first quarter we maintained revenue levels from last year despite currency headwinds, but a number of additional factors contributed to suppressing our margins and profitability," chief executive John Keating said.
      

550 employees at Siemens plant in Hamilton set to lose their jobs
TORONTO - About 550 employees at the Siemens Energy gas turbine plant in Hamilton are set to lose their jobs over the next year as the German industrial conglomerate relocates the facility to North Carolina. The jobs will be eliminated over the next 12 to 18 months, with the plant slated to close completely by July 2011, the company announced Thursday.
      

Imax reports $4 million profit in fourth quarter, revenue up helped by ’Avatar’
TORONTO - Massive-screen movie company Imax Corp. rose to profitability in the fourth quarter with help from Hollywood mega-blockbuster "Avatar." The Toronto-based company, which operates theatres around the world, reported a profit of $4 million, or six cents per diluted share for the quarter ended Dec. 31.
      

Crude prices settle little changed as traders weigh demand concerns
NEW YORK - Oil prices stayed put, just above US$82 on Thursday, as investors mulled demand uncertainties and a government report that showed America's huge natural gas reserves shrank a little last week. Benchmark crude for April delivery rose two cents to settle at $82.11 a barrel on the New York Mercantile Exchange. Earlier, prices slid as low as $81.33 after the U.S. Labour Department said workers filing for jobless benefits for the first time fell slightly less than expected. The news raised concerns that continuing high unemployment will crimp oil and gas demand with fewer commuters on the road.
      

N.S. premier defends Daewoo deal against Opposition risky business claims
HALIFAX, N.S. - There is no guarantee Nova Scotia taxpayers' stake in a wind turbine plant will result in any potential profits flowing into provincial coffers, Premier Darrell Dexter said Thursday. The decision on what happens to any profits in the government's joint venture with South Korean manufacturing giant Daewoo Shipbuilding and Marine Engineering Inc. at the former TrentonWorks railcar factory will be made by the new company's board of directors, Dexter said outside a cabinet meeting.
      

Power Financial Corp. posts $340M Q4 profit; reverses year-ago loss
MONTREAL - Power Financial Corp., whose subsidiaries include Great-West Lifeco Inc. (TSX:GWO) and IGM Financial Inc. (TSX:IGM), reported a big improvement in fourth-quarter earnings Thursday despite an overall decline in revenue. The Montreal-based holding company (TSX:PWF) said net profits were $340 million or 45 cents a share for the three months ended Dec. 31. That compared with a net loss of $773 million or $1.12 per share for the same 2008 period.
      

Americans' net worth grows at end of last year but still well below pre-recession peak
WASHINGTON - Americans regained more of their shrunken wealth last quarter, mainly because the healing U.S. economy boosted stock portfolios. But the gain was less than in the previous two quarters. The U.S. Federal Reserve reported Thursday that household net worth rose 1.3 per cent in the fourth quarter to US$54.2 trillion. It marked the third straight quarter of gains. Net worth had risen by a stronger 4.5 per cent in the second quarter of 2009 and by an even faster 5.5 per cent in the third quarter.
      

TD Bank chief economist Don Drummond to retire in June
TORONTO - TD Bank chief economist Don Drummond plans to retire at the end of June. The prominent economic forecaster will be succeeded by TD's deputy chief economist, Craig Alexander, and Drummond will continue to work as an adviser to TD Bank (TSX:TD).
      

January US trade deficit shrinks to $37.3B as imports fall more than exports
WASHINGTON - The U.S. trade deficit unexpectedly shrank in January, reflecting a big drop in imports of oil and foreign cars. American exports also fell, a potential blow to hopes that the economic recovery will be aided this year by U.S. sales abroad. The Commerce Department said that the trade deficit declined to US$37.3 billion in January, a drop of 6.6 per cent from a revised December deficit of $39.9 billion. Economists had been expected the deficit to widen to $41 billion.
      

Crescent Point posts fourth-quarter loss on hedging losses
CALGARY - Crescent Point Energy Corp. (TSX:CPG), an oil and gas producer, reported a fourth-quarter loss of $4 million compared to a profit of $361 million in the same quarter of 2008, its results affected by losses this year and gains in the last due to its hedging program. The loss amounted to two cents per share, compared to a profit of $2.84, in the same 2008 period.
      

Cominar REIT's Q4 rise 36.5 per cent to $8.4 million
QUEBEC - The largest commercial property owner in Quebec, Cominar Real Estate Investment Trust (TSX:CUF.UN), had a $8.4-million profit in the fourth quarter. The net income for the three months ended Dec. 31 amounted to 15 cents per unit - up from 13 cents or $6.1 million a year earlier.
      

Lawmakers to probe government safety agency's handling of Toyota recalls, auto industry
WASHINGTON - The U.S. government may require automakers to include brake systems that can override the gas pedal in response to Toyota's massive recalls, auto safety officials told Congress on Thursday. David Strickland, the administrator of the U.S. National Highway Traffic Safety Administration, said in prepared remarks to a House panel that his agency may require the brake override systems, a fix intended to prevent the type of runaway car incidents that some Toyota drivers have described.
      

Devon Energy to partner with BP in Alberta oilsands, sell US$7 billion of assets elsewhere to BP
LONDON - BP PLC is partnering with Devon Energy Corp. to develop an Alberta oilsands project as part of a much larger deal in which BP will pay US$7 billion to buy exploration rights in several countries from the Amerian company. BP, which has not been a major player in the Alberta oilsands, said Thursday it will sell a 50 per cent stake in its Kirby leases for US$500 million to Oklahoma-based Devon, which already has an oilsands project in the same area.
      

Kinross takeover offer values Underworld Resources at $139.2 million
TORONTO - Kinross Gold Corp. (TSX:K) is offering to pay a premium to buy the rest of Underworld Resources Inc. (TSXV:UW) in a stock-and-cash deal that values the junior mining company at $139.2 million. Kinross, which is one of Canada's largest gold producers, already owns 8.5 per cent of Underworld's common shares and is offering to buy the rest in exchange for a fraction of a Kinross share plus a penny cash.
      

Trade surplus grows as exports up, imports down in January: StatsCan
OTTAWA - Canada's merchandise exports grew 0.5 per cent in January, while imports declined 1.7 per cent. As a result, Statistics Canada reports the country posted a trade surplus with the world of $799 million in January compared with a surplus of $75 million in December.