November 12, 2010 / 4:49 PM / 7 years ago

UPDATE 2-Power Financial profit falls due to charge

* Operating EPS C$0.62 vs est C$0.60

* Net profit falls on C$144 mln charge

* Power Corp operating EPS C$0.58 vs C$0.53 (Adds Power Corp earnings)

TORONTO, Nov 12 (Reuters) - Power Financial Corp (PWF.TO), a unit of Montreal’s Power Corp (POW.TO) empire, said on Friday its net profit fell 29 percent due to a litigation charge at its insurance subsidiary.

Power Financial, which controls Great-West Lifeco (GWO.TO) and mutual fund company IGM Financial (IGM.TO), earned a net C$323 million ($320 million), or 42 Canadian cents a share, in the quarter ended Sept. 30.

That was down from a profit of C$452 million, or 61 Canadian cents a share a year earlier.

Stripping out a C$144 million charge related to a litigation provision taken by subsidiary Great-West, operating profit was C$467 million, or 62 Canadian cents per share.

Analysts polled by Thomson Reuters I/B/E/S/ had expected, on average, a profit of 60 Canadian cents a share.

“The increase in operating earnings reflects primarily the increase in the contribution from the corporation’s subsidiaries,” Power Financial said in a statement.

At the holding company level, Power Corp of Canada said later in the day that its third-quarter profit also fell 29 percent, hit by a C$96 million charge.

Power Corp, controlled by the Desmarais family, said net earnings for the quarter were C$178 million or C$0.37 per share. That compared with C$250 million or C$0.52 per share in the corresponding period of 2009.

The company said operating earnings were C$274 million or C$0.58 per share, compared with C$252 million or C$0.53 per share in the third quarter of 2009.

Power Financial shares were down 31 Canadian cents at C$30.02. Power Corp shares were down 16 Canadian cents at C$27.59 in Toronto.

$1=$1.01 Canadian Reporting by Cameron French; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below