November 11, 2008 / 8:48 PM / 10 years ago

UPDATE 1-Power Corp profit slips on weak subsidiary results

* Subsidiary’s lower profits weigh on results (Adds details, background)

TORONTO, Nov 11 (Reuters) - Power Corp of Canada (POW.TO) said on Tuesday its quarterly profit fell 6 percent as its key operating subsidiaries posted slightly weaker results.

The Montreal-based holding company said net income was C$332 million ($277 million), or 70 Canadian cents a diluted share, in the three months ended Sept. 30. That compared with C$354 million, or 75 Canadian cents a diluted share, a year earlier.

Power Corp, controlled by Montreal’s Desmarais family, said that operating earnings were C$334 million, or 71 Canadian cents a share, down from C$392 million, or 84 Canadian cents a share, in the same 2007 period.

The company owns 66 percent of Power Financial Corp (PWF.TO), which in turn controls insurance company Great-West Lifeco (GWO.TO) and mutual fund company IGM Financial (IGM.TO). The latter two companies reported lower quarterly profits on Oct. 30.

Earlier on Tuesday, Power Financial its net income for the quarter was unchanged and that it raised its quarterly dividend by 4.5 percent to 35 Canadian cents a share.

Power Corp said its subsidiaries contributed C$293 million to its operating earnings, down from C$338 million last year. Also weighing on its results were lower earnings from its qualified foreign institutional investor, or QFII, operations in China.

Power Corp also owns Gesca Ltee, which publishes magazines, books and newspapers, including the Montreal daily newspaper La Presse.

$1=$1.20 Canadian Reporting by Frank Pingue; Editing by Peter Galloway

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