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CAE Inc.’s CAE-T share price surged after the company reported strong civil and defence performance in its second quarter results. The Montreal-based builder of flight and health simulators saw its share price increase 18.17 per cent to $28.42 on the TSX at midday trading. CAE says net income attributable to equity holders was $44.5-million, or 14 cents per share for the quarter ended Sept. 30, up from $14.0-million or 4 cents per share in the same quarter last year. CAE attributes a strong consolidated-level performance in the second quarter to double-digit growth in the civil segment, better results in defence and renewed profitability in healthcare. The company reaffirmed its outlook for the fiscal year after reducing the compound growth rate to mid-20 per cent last quarter. On an adjusted basis, it earned 19 cents per share and $993.2-million in revenue, compared to an average analyst expectation of 17 cents per share and $949-million, according to estimates compiled by financial...

Toronto Pearson International Airport saw passenger volumes rise by 135 per cent in the three months ending on Sept. 30, as the operator of Canada’s busiest airport rode a tumultuous return to travel. Toronto Pearson’s operator, the Greater Toronto Airports Authority, made a profit of $73-million in the third quarter, reversing a loss of $58-million in the same period a year ago. Revenue rose by 72 per cent to $422-million. The financial results released on Thursday underscore the size of the wave of pentup demand for travel unleashed by the easing of pandemic and related restrictions. The GTAA said the number of travellers rose by 6.5 million to 11.2 million, compared with the year-earlier quarter. This lags the prepandemic third quarter of 2019, when 14.2 million passengers travelled through Toronto Pearson. Toronto Pearson, other Canadian airports and airlines were ill-prepared for the wave of 2022, as travellers faced delays, congestion and lineups due to a lack of workers in air...

The Canada Pension Plan Investment Board eked out a gain of 0.2 per cent in a fiscal second quarter that was tough for investors, adding $1-billion to the fund’s assets in spite of broad weakness in public and private equities as well as fixed income markets. CPPIB’s investment returns outperformed The S&P Global LargeMidCap index, a measure of stocks CPPIB uses as 85 per cent of its benchmark reference portfolio, which fell 1.46 per cent in the quarter in Canadian-dollar terms. But CPPIB narrowly trailed the performance of Canadian defined-benefit pension plans in the quarter, in which assets were up 0.5 per cent, according to Royal Bank of Canada’s RBC I&TS All Plan Universe. In the first nine months of the year, those pension plans have lost 13.7 per cent. Gains in U.S. dollar-denominated investments, which were boosted by foreign exchange rates, and positive returns from energy and infrastructure investments helped keep returns positive after CPPIB lost $23-billion in the...

Emera Inc. EMA-T is putting capital spending on clean energy projects in Nova Scotia on hold as it works through the consequences of the Nova Scotia government’s imposed rate cap on the parent company of Nova Scotia Power. In a conference call to discuss the power utility’s latest financial results, Emera chief executive Scott Balfour said Friday that while the company will continue to make investments in safety and reliability of its network, it won’t be able to spend on other projects in the province due to the cap. “The last capital plan included $500-million in planned investment in the Eastern Clean Energy Initiative, including the Atlantic Loop, to fund new wind generation, transmission, infrastructure upgrades and battery storage to help facilitate the transition away from coal-fired generation,” he said. “Given the restrictions imposed by Bill 212, these cleaner energy investments have been forced to be put on hold as our capital investments at Nova Scotia Power are now requi...

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

Algonquin Power & Utilities Corp. AQN-T reported a $195.2-million loss in its latest quarter and cut its financial guidance for the year. The power utility, which keeps its books in U.S. dollars, says it lost 29 cents per share for the quarter ended Sept. 30 compared with a loss of US$27.9-million or five cents per share in the same quarter last year. Revenue totalled US$666.7-million, up from US$528.6-million a year earlier. On an adjusted basis, Algonquin says it earned 11 cents per share in its latest quarter compared with an adjusted profit of 15 cents per share in its third quarter of 2021. In its outlook, the company says it now expects adjusted net earnings per share for 2022 in a range of 66 cents to 69 cents compared with earlier expectations for between 72 cents and 77 cents. Algonquin says it updated its guidance due to higher interest rates and inflation, delays in the construction and completion of some of its renewable energy projects, and anticipated delays in conn...

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...

Oil tanks at the Volodarskaya LPDS production facility, in the village of Konstantinovo, Russia, on June 8. MAXIM SHEMETOV/Reuters Russian oil output is set to fall 1.4 million barrels per day (bpd) next year after a European Union ban on seaborne exports of Russian crude comes into effect, the International Energy Agency said on Tuesday. The move to deprive Moscow of revenue will create more uncertainty for oil markets and add to pressure on prices, including diesel, the Paris-based energy agency said in its monthly oil report. “The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets,” the IEA said. “A proposed oil price cap may help alleviate tensions, yet a myriad of uncertainties and logistical challenges remain … the range of uncertainty has never been so large.” The EU will ban Russian crude imports from Dec. 5 and Russ...

Pedestrians are reflected on the wall of a shopping mall in Tokyo, on Nov. 15. KIM KYUNG-HOON/Reuters Japan’s economy unexpectedly shrank for the first time in a year in the third quarter, stoking further uncertainty about the outlook as global recession risks, a weak yen and higher import costs taking a toll on household consumption and businesses. The world’s third-biggest economy has struggled to motor on despite the recent lifting of COVID-19 curbs, and has faced intensifying pressure from red-hot global inflation, sweeping interest rate increases worldwide and the Ukraine war. Gross domestic product fell an annualized 1.2 per cent in July-September, official data showed, compared with economists’ median estimate for a 1.1-per-cent expansion and a revised 4.6-per-cent rise in the second quarter. It translated into a quarterly decline of 0.3 per cent, versus a forecast of 0.3-per-cent growth. Japan has also been dealing with the challenge of the yen’s slide to 32-year lows against...

A Home Depot location in Mexico City, on Jan. 15. LUIS CORTES/Reuters Home Depot Inc HD-N on Tuesday left its annual forecasts unchanged even as quarterly results topped Wall Street expectations, raising concerns about demand heading into the holiday season amid a slowing housing market. Shares in the largest U.S. home improvement chain slipped in early trade, with the number of transactions falling in the quarter as surging inflation deterred do-it-yourself customers. Mortgage rates have more than doubled since the start of 2022, cooling the housing market that boomed in the pandemic. Home Depot reiterated its full-year outlook, which Jefferies analysts said implied its fourth-quarter earnings would come in below Wall Street. Although demand from contractors, builders and other professional customers remained strong, DIY customers who had splurged on paint, tools and gardening equipment last year cut back on spending in the third quarter of this year. “Home Depot is not immune to a ...

Stelco Holdings Inc. says its net earnings for the third quarter ended Sept. 30 were down by almost 74 per cent year-over-year to $158-million, or $2.33 per diluted share. The Hamilton-based steelmaker says challenging market conditions in the third quarter, which are expected to continue, included lower steel prices and inflationary pressure. The company’s revenue was $217-million for the quarter, down 38 per cent from last year and down 18 per cent from the second quarter. The company says its revenue decrease was primarily due to a 36 per cent decline in average selling price per net ton, as well as lower shipping volumes and lower non-steel sales, all compared to last year. However, executive chairman and chief executive Alan Kestenbaum says despite inflation and downward steel pricing trends, the company saw shipping volumes increase over last quarter. The company reiterated its fourth-quarter guidance that lower prices and shorter lead times will continue to affect results thro...

An autonomous driving vehicle prepares to drive without a human driver behind the steering wheel from the Loblaw office to a Superstore in Brampton, Ont., on Oct. 4. Christopher Katsarov/Tausi Insider Two Canadian grocers reported growth in sales and profits in their latest quarters, as the sector continues to face scrutiny over food inflation and its impact on people’s ability to afford basic necessities. On Wednesday, Canada’s largest grocer, Loblaw Cos. Ltd. L-T said its profits spiked by 29 per cent in the third quarter, which the company attributed primarily to growth in sales at its drugstores. Montreal-based Metro Inc. MRU-T reported that adjusted net earnings grew by 9.4 per cent in its fourth quarter. Canadian grocery store operators have faced increasing public pressure as food prices have risen at a pace not seen in decades. On Wednesday, Statistics Canada reported that food prices jumped 10.1 per cent in October, a rate that slowed only slightly from 10.3-per-cent food in...

An autonomous driving vehicle prepares to drive without a human driver behind the steering wheel from the Loblaw office to a Superstore in Brampton, Ont., on Oct. 4. Christopher Katsarov/Tausi Insider Two Canadian grocers reported growth in sales and profits in their latest quarters, as the sector continues to face scrutiny over food inflation and its impact on people’s ability to afford basic necessities. On Wednesday, Canada’s largest grocer, Loblaw Cos. Ltd. L-T said its profits spiked by 29 per cent in the third quarter, which the company attributed primarily to growth in sales at its drugstores. Montreal-based Metro Inc. MRU-T reported that adjusted net earnings grew by 9.4 per cent in its fourth quarter. Canadian grocery store operators have faced increasing public pressure as food prices have risen at a pace not seen in decades. On Wednesday, Statistics Canada reported that food prices jumped 10.1 per cent in October, a rate that slowed only slightly from 10.3-per-cent food in...

Airbnb Inc ABNB-Q said on Wednesday it had recorded a “disproportionate” 31 per cent rise in single-room listings on its platform in the third quarter, as more people sought extra income in the face of a cost-of-living crisis. The company said property listings rose across regions, without disclosing specific numbers, and to aid the growth, it unveiled an app update on Wednesday to make the process easier. “We have seen a lot of people being more interested than even before in hosting to defray their cost of living,” Airbnb Chief Executive Brian Chesky said, as high inflation due to the Ukraine war puts fragile household budgets under pressure. About 46 per cent of hosts on Airbnb said they used the extra money from renting out properties to pay for food and other items, while one in 10 said it helped them avoid eviction or foreclosure, the company said, citing a survey. Some popular tourist destinations have, however, blamed the company for aggravating housing shortages, as landlord...

U.S. retail sales increased more than expected in October as households stepped up purchases of motor vehicles and a range of other goods, suggesting consumer spending picked up early in the fourth quarter, which could help to support the economy. The solid retail sales reported by the Commerce Department on Wednesday and signs of a slowdown in inflation raised cautious optimism the economy could avoid an anticipated recession next year or just experience a mild downturn. “We might be in for a soft landing after all,” said Paul Ashworth, chief North America economist at Capital Economics in Toronto. Retail sales rose 1.3 per cent last month after being unchanged in September. Economists polled by Reuters had forecast sales rising 1.0 per cent. Retail sales are mostly goods and are not adjusted for inflation. They increased 8.3 per cent year-on-year in October. One-time tax refunds in California, which saw some households receiving as much as $1,050 in stimulus checks, likely helped t...

NFI Group Inc. NFI-T reported a loss of US$42.6-million in its latest quarter compared with a loss of US$15.4-million in the same quarter last year as its revenue edged higher. NFI chief executive Paul Soubry says the results reflect the ongoing impacts of unreliable supplier performance, associated production inefficiencies and heightened inflation on input costs. The bus maker, which keeps its books in U.S. dollars, says the loss amounted to 56 cents per share for the company’s third quarter compared with a loss of 22 cents per share a year earlier. Revenue for the quarter totalled US$514.0-million, up from US$492.0 in its third quarter of 2021. On an adjusted basis, NFI says it lost 63 cents per share in its latest quarter compared with an adjusted loss of 16 cents per share in the same quarter last year. The company says it is in talks with Export Development Canada, the Manitoba government and other banking syndicate members regarding credit facility covenant relief and potentia...

Deal making activity slowed further in Canada during the third quarter, continuing a downtrend trend driven by rising interest rates and volatile market conditions, though experts are counting on a rebound in 2023. A total of 684 merger and acquisition transactions were announced between the start of July and the end of September, according to the latest Canadian M&A report from specialty investment bank Crosbie & Co. released Wednesday, representing the third straight quarterly decline. Transactions fell by one-third from the recent high achieved in the first quarter of 2021, when more than 1,000 deals were announced, although the latest decline in transactions was offset by several mega-deals worth more than $1-billion. Aggregate deal value increased to $63-billion in the third quarter, up 16 per cent from the second quarter, largely as a result of 14 mega-deals announced during the latest period. Fully one-third of that total came from just two transactions: refining giant...

The Cisco Systems headquarters in Issy-les-Moulineaux, France, on Aug. 6. SARAH MEYSSONNIER/Reuters Cisco Systems Inc CSCO-Q raised its full-year revenue and profit forecast amid easing supply chain hurdles and announced $600-million in severance and other charges related to a new restructuring, which could impact roughly 5 per cent of its work force. Shares of the company rose nearly 5 per cent in extended trading on Wednesday. The company said the restructuring plan will begin in the second quarter of fiscal year 2023. “This is not about reducing our work force – in fact we will have roughly the same number of employees at the end of this fiscal year as we had when we started,” Cisco said, adding it would focus its resources on its enterprise networking and security businesses. The restructuring comes at a time when most companies including Amazon.com Inc and Facebook’s parent Meta Platforms Inc are making deep cuts to their employee base to navigate a potential downturn in the ec...

Shoppers at the Toronto Eaton Centre, on July 18. Fred Lum/the Globe and Mail Retail sales fell 0.5 per cent to $61.1-billion in September led by a drop in sales at gas stations along with food and beverage stores, Statistics Canada said Tuesday. However, the agency said its initial estimate for October pointed to a gain of 1.5 per cent for the month, though it cautioned the figure would be revised. “Retail sales fell in September; though the drop was smaller in volume terms, real spending took a notable step back in the third quarter,” BMO economist Shelly Kaushik wrote in a report. “However, solid advance estimates for retail and manufacturing sales, as well as wholesale trade, point to a recovery in October.” For September, Statistics Canada said sales at gas stations fell 2.4 per cent as sales in volume terms at gas stations rose 4.2 per cent, but gas prices fell 7.4 per cent. Meanwhile, sales at motor vehicle and parts dealers were relatively unchanged as sales at used car deale...

Valuations and deal volumes and sizes hit their highest levels in years in 2021. Nathan Denette/The Canadian Press Venture capital investment in Canada has collapsed to its lowest quarterly level since the early days of the pandemic as economic conditions continue to deteriorate and companies seeking investment struggle to find a meeting point on prices with financiers. The Canadian Venture Capital and Private Equity Association of Canada, or CVCA, said Thursday that companies raised $896-million across 144 deals in the third quarter. That’s down 50 per cent by value and 25 per cent in deal volume from the second quarter – and off 78 per cent in deal value from the third quarter last year. This year will still rank as one of the biggest on record for VC financing in Canada, although many of those deals were actually reached last year and only announced in 2022. Valuations and deal volumes and sizes hit their highest levels in years in 2021, and global investors such as Tiger Global M...