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Hydro One Ltd. H-T reported a third-quarter profit of $307-million, up from $300-million in the same quarter last year. The power utility says the profit amounted to 51 cents per diluted share for the quarter ended Sept. 30. The result compared with a profit of 50 cents per diluted share in the third quarter of 2021. Revenue for the quarter totalled $2.03-billion, up from $1.91-billion in the same quarter last year. Revenue, net of purchased power, was $1.07-billion, up from $980-million a year ago. Hydro One is Ontario’s largest electricity transmission and distribution provider. https://www.tausiinsider.com/hydro-one-reports-307-million-third-quarter-profit-up-from-300-million-a-year-ago/?feed_id=427565&_unique_id=649b208e0dec3

Turquoise Hill Resources Ltd. TRQ-T says if Rio Tinto’s RIO-N proposal to take the company private does not go ahead its immediate priority will be to address the company’s liquidity concerns. The company says it will implement all elements of its binding funding heads of agreement with Rio Tinto, which holds a majority stake in the company, to provide it with the needed liquidity and resources to meet its obligations as it works to expand its Oyu Tolgoi copper and gold mine in Mongolia. Turquoise Hill, which keeps its books in U.S. dollars, made the comments as it reported a profit of US$40-million or 23 cents per diluted share for the quarter ended Sept. 30 compared with a profit of US$54.4-million or 28 cents per diluted share in the same quarter last year. Revenue for the quarter totalled US$391.1-million, down from US$662.1-million a year earlier. In its outlook, the company maintained its copper production guidance within a range of 110,000 to 150,000 tonnes, while it raised it...

BP BP-N is paying more tax as it is making more profit, its U.K. head Louise Kingham told the Reuters Energy Transition Europe 2022 event on Wednesday. “It’s right that (the government) should think about how they protect the most vulnerable and taxation is not for companies to determine,” Kingham said. “I think when companies make more profits, they expect to pay more taxes, and that’s exactly what we are doing,” she added. British finance minister Jeremy Hunt is considering increasing a windfall tax on oil and gas firms and extending it to power generation firms as he tries to find ways to repair the country’s public finances, sources said on Saturday. Hunt is due to announce his new budget plan on Thursday “Taxes that we will pay here in the U.K. will be about two and a half billion dollars, all told, with the (existing) additional levy,” Kingham added, referring to the 25 per cent windfall tax, or Energy Profits Levy, approved by British lawmakers for oil and gas producers in the...

For all the talk of corporate “greedflation,” profit margins for non-financial companies are offering yet another sign high inflation and rising interest rates are hammering the Canadian economy. New figures released by Statistics Canada this week show corporate profits in the third quarter fell for the first time on a seasonally-adjusted basis since the start of 2020, when Statscan began reporting corporate financial performance in that way. Net income before taxes declined 8.1 per cent to $137-billion compared with the previous quarter. The earnings drop is putting a crunch on corporate profit margins, which had remained largely in line with prepandemic levels, despite companies in many sectors reporting record profits on surging revenues over the past two years. Though analysts have been warnings for months about a slowdown in corporate profits, now that margins are being squeezed it could have a nasty knock-on effect for the rest of the economy and will likely heighten recession...

Bank of Nova Scotia BNS-T reported a lower fourth-quarter profit on Tuesday, as a lull in its investment banking division dented income from its capital markets unit and compelled the lender to set aside higher provisions. Net income, excluding one-off items, came in at $2.62 billion, or $2.06 a share, in the three months ended Oct. 31, compared with $2.72 billion, or $2.10, a year earlier. Analysts on average had expected $2 a share, according to Refinitiv data. Canada’s third-largest lender reported overall net profit of $2.09 billion, or $1.63 a share, compared with $2.56 billion, or $1.97 a share, last year. https://www.tausiinsider.com/scotiabank-profit-falls-on-capital-market-slump-provisions/?feed_id=332134&_unique_id=645b38ed26a87

BRP Inc. DOO-T reported its third-quarter profit and revenue rose compared with a year ago and raised guidance for its full year. The Ski-Doo and Sea-Doo maker says it earned $141.6-million or $1.76 per diluted share for the quarter ended Oct. 31, up from $127.7-million or $1.53 per diluted share in the same quarter last year. Revenue for the quarter totalled $2.71-billion, up from $1.59-billion a year earlier. On a normalized basis, BRP said it earned $3.64 per diluted share in its latest quarter, up from a normalized profit of $1.48 per diluted share in the same quarter last year. In its outlook, BRP said it expected revenue for its full year to rise 27 to 32 per cent compared with earlier guidance for growth between 26 and 31 per cent. Normalized earnings per share for the full year are now expected to be between $11.65 and $12, up from its previous forecast for between $11.30 and $11.65. “BRP delivered record fiscal 2023 third-quarter results, well ahead of expectations, driven b...

Canadian Imperial Bank of Commerce CM-T reported an 18-per-cent drop in fiscal fourth-quarter profit and raised its dividend as the bank was hit by higher expenses and loan loss provisions. The Toronto-based bank is the fourth major lender to report earnings for the quarter that ended Oct. 31, and the second to fall short of analysts’ profits estimate, along with National Bank of Canada. Royal Bank of Canada and Bank of Nova Scotia both reported earnings that were ahead of expectations. CIBC earned $1.19-billion, or $1.26 per share, in the fourth quarter. That compared with $1.44-billion, or $1.54 per share, a year earlier. The bank’s results included several special charges, including a $91-million increase in legal provisions, a $37-million charge from consolidating its real estate portfolio, and $12-million of costs related to the bank’s acquisition of the credit card portfolio of retailer Costco in Canada. Adjusted to exclude those items, CIBC said it earned $1.39 per share. That...

Canada’s biggest banks reported their fourth-quarter earnings this week, covering the three months ending Oct. 31, as analysts gauge the strength of the banking sector before heading into an expected slowdown (and possible recession) next year. Bank of Nova Scotia, Royal Bank of Canada and Toronto-Dominion Bank topped analysts’ forecasts. Meanwhile, National Bank, Canadian Imperial Bank of Commerce and Bank of Montreal fell short of analysts’ expectations. As central banks raise interest rates to slow inflation, economic fears have held bank stocks back compared with the overall market. Markets are watching these earnings closely for signs of how they will be affected in future quarters by decades-high inflation and central banks’ rapid rate hikes. Here’s a breakdown of the Big Six banks’ fourth-quarter earnings. Bank of Nova Scotia The Bank of Nova Scotia building, in Toronto, on Aug. 22, 2017. Nathan Denette/The Canadian Press Earnings Q4 2022 : $2.1 billion ($1.63 per share) Earni...

CWB Financial Group CWB-T raised its dividend and reported its fourth-quarter profit fell compared with year ago as its provision for credit losses rose. The bank says it upped its quarterly dividend by a penny to 32 cents per share. The increased payment to shareholders came as CWB reported common shareholders’ net income of $67.7-million or 72 cents per share for the quarter ended Oct. 31, down from $90.0-million or $1.01 per diluted share a year earlier. Revenue totalled $279.8-million, up from $260.6-million in the same quarter last year. CWB said its provision for credit losses amounted to $12.2-million in its latest quarter compared with a $10.2-million recovery of credit losses in its fourth quarter last year. On an adjusted basis, CWB said it earned 88 cents per share, down from an adjusted profit of $1.03 per share a year ago. Analysts on average had expected a profit of 87 cents per share, according to estimates compiled by financial markets data firm Refinitiv. “Our perfor...

Passengers queue for the check in desk at Heathrow airport, in London, on June 1. HANNAH MCKAY/Reuters Global airlines are predicting their first industry-wide profit since 2019 next year as air travel rebounds from COVID-19 restrictions, while a new war of words erupted with airports on Tuesday over rising air fares and ground charges. Airlines lost tens of billions of dollars in 2020 and 2021 due to the pandemic, but air travel has partially recovered and some airports have struggled to cope. The International Air Transport Association (IATA) now expects a net profit of $4.7-billion for the industry next year, with more than 4 billion passengers set to fly. It had previously said only that profits were “within reach” in 2023. For 2022, IATA narrowed its forecast for industry-wide losses to $6.9-billion from $9.7-billion. “That is a great achievement considering the scale of the financial and economic damage caused by government-imposed pandemic restrictions,” IATA Director General ...

The Goldman Sachs company logo on the floor of the New York Stock Exchange, on July 13, 2021. Brendan McDermid/Reuters Goldman Sachs GS-N began laying off staff on Wednesday in a sweeping cost-cutting drive, with around a third of those affected coming from the investment banking and global markets division, a source familiar with the matter said. The long-expected jobs cull at the Wall Street titan is expected to represent the biggest contraction in headcount since the financial crisis. It is likely to affect most of the bank’s major divisions, with its investment banking arm facing the deepest cuts, a source told Reuters this month. Just over 3,000 employees will be let go, the source, who could not be named, said on Monday. A separate source confirmed on Wednesday that cuts had started. The cuts are part of broader reductions across the banking industry as a possible global recession looms. At least 5,000 people are in the process of being cut from various banks. In addition to th...

American Airlines planes sit on the tarmac at LaGuardia airport, in New York, on Jan. 11. ED JONES/AFP/Getty Images American Airlines Group Inc AAL-Q on Thursday forecast a higher fourth-quarter profit on strong demand for travel during the key holiday season, sending its shares up more than 5 per cent in premarket trading. The upbeat forecast comes at a time when a worsening economic outlook coupled with high inflation has sparked concerns about consumer demand. Shares of other airlines including Delta Air Lines Inc DAL-N, Southwest Airlines Co LUV-N and United Airlines Holdings Inc UAL-Q were also up between 1 per cent and 3 per cent premarket. The fourth quarter was difficult for several U.S. carriers as an industry-wide pilot shortage made it tougher for carriers to ramp up capacity and capitalize on a booming travel demand. During the fourth quarter, American Airlines’ capacity was down 6.1 per cent versus the fourth quarter of 2019, and near the midpoint of its prior guidance o...

Corus Entertainment Inc. CJR-B-T reported its first-quarter profit fell compared with a year ago as its revenue also moved lower. The television and radio company says it earned $31.4-million in net income attributable to shareholders or 16 cents per diluted share for the three months ended Nov. 30. The result compared with a profit of $76.2-million or 36 cents per diluted share in the same quarter a year earlier. Revenue totalled $431.2-million, down from $463.9-million a year earlier. The decline in revenue came as Corus reported its television revenue fell to $401.5-million compared with $434.7-million. Radio revenue was $29.7-million, up from $29.1-million a year earlier. https://www.tausiinsider.com/corus-entertainment-reports-first-quarter-profit-and-revenue-down-from-year-ago/?feed_id=324726&_unique_id=63f03c63b2782

JPMorgan's corporate headquarters, in New York, on May 20, 2015. Mike Segar/Reuters JPMorgan Chase & Co JPM-N said on Friday it set aside $1.4-billion in anticipation of a mild recession, even as it reported a better-than-expected quarterly profit on the back of strong performance at its trading unit. Shares of the biggest U.S. bank fell about 3 per cent in premarket trading as it kicked off quarterly earnings for corporate America that are expected to fall for the first time since the third quarter of 2020. While Chief Executive Jamie Dimon said consumers were still spending excess cash and businesses remained healthy, he listed a number of uncertainties facing the economy. “We still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation... and the unprecedented quantitative tightening.” The bank flagged a modest deterioration in its macroeconomic ...

Wells Fargo & Co WFC-N on Friday reported a 50 per cent decline in profit for the fourth quarter, missing analysts’ estimates, as the bank racked up more than $3-billion in costs related to a fake accounts scandal and boosted loan loss reserves for a potential economic slowdown. The bank’s shares were down nearly 4 per cent in premarket trade. The fourth-largest U.S. lender reported a profit of 67 cents per share for the quarter ended Dec. 31, compared with $1.38 per share a year earlier. On an adjusted basis, the bank earned 61 cents per share, compared with analysts’ estimates of 66 cents per share, according to Refinitiv IBES data. Provision for credit losses was $957-million in the quarter, compared with a $452-million release a year earlier. Provision for credit losses in the quarter included a $397-million increase in the allowance for credit losses primarily reflecting loan growth, as well as a less favorable economic environment, the bank said. Though Wells Fargo’s operat...

Bank of America Corp BAC-N reported a bigger-than-expected fourth-quarter profit on Friday, helped by a surge in net interest income as the U.S. Federal Reserve raised rates through most of last year. The ‘higher-for-longer’ rate environment to battle decades-high inflation has underpinned profits at consumer banks, with analysts expecting those gains to peak in 2023 and help offset sluggish deal making as well as bigger loan loss provisions. Bank of America’s net interest income (NII), which reflects how much money the bank makes from charging interest to customers, jumped 29 per cent to $14.7-billion in the quarter. Its profit applicable to common shareholders rose 2 per cent to $6.9-billion, or 85 cents per share. Analysts, on average, had estimated a profit of 77 cents per share, according to Refinitiv IBES data. Though four-decade-high inflation rates are testing U.S. consumers, spending trends have still largely been positive, bolstering Bank of America’s profit in its key cons...

Cogeco Communications Inc. CCA-T reported its first-quarter profit and revenue rose compared with a year ago, but the company trimmed its guidance for its full financial year. The cable company says it now expects revenue for its 2023 financial year to grow in a range of 0.5 per cent to 2 per cent on a constant currency basis compared with earlier expectations for growth between 2 per cent and 4 per cent. Cogeco Communications also says its adjusted earnings before interest, taxes, depreciation and amortization is now expected to grow between 0.5 per cent and 2 per cent on a constant currency basis compared with earlier guidance for growth between 1.5 per cent and 3.5 per cent for its full year. The revised guidance came as the company reported its profit attributable to owners of the corporation totalled $111.5-million for the quarter ended Nov. 30, up from $106.8-million a year earlier. The profit amounted to $2.44 per diluted share for the quarter, up from $2.27 per diluted share ...

The exterior of the Microsoft office in Toronto on Jan. 1. Tijana Martin/Tausi Insider Microsoft Canada MSFT-Q became owned by an Irish affiliate in its 2021 fiscal year, according to documents that offer a rare glimpse at how its multinational parent company has taken advantage of Ireland as a tax haven. Such a structure could drive down the taxes that the Outlook, Word and Excel software giant pays on any profit it generates in Canada, experts say, by letting Microsoft Canada transfer profits to the lower-tax country with techniques such as royalty payments to the Irish parent company. Many jurisdictions, including Canada, put little pressure on large multinationals to disclose the finances of their local subsidiaries. But financial statements recently published by Ireland’s corporate registration office show that a Microsoft Corp. branch called Microsoft Round Island One UC became tax resident there as of Jan. 1, 2021. Inside Amazon’s strategy to shield its profits from Canadian t...