Business
Power Corporation of Canada Reports 2011 Financial Results and Dividends
Readers are referred to the sections entitled "Forward-looking Statements" and "Non-IFRS Fi...
About this update from Power Corporation Of Canada
[{"type":"text","content":"\n\n\n\n\n\nReaders are referred to the sections entitled \"Forward-looking\n Statements\" and \"Non-IFRS Financial Measures\" at the end of\n this release. The Corporation's financial results are reported\n under International Financial Reporting Standards (IFRS) and all\n comparative figures have been restated accordingly.\n\n\nMONTREAL, March 14, 2012 /CNW Telbec/ - Power Corporation of Canada\n (TSX: POW) today reported operating earnings attributable to\n participating shareholders for the year ended December 31, 2011 of\n $1,152 million or $2.50 per share, compared with $957 million or $2.09\n per share in 2010. This represents an increase of 19.9% on a per share\n basis.\n\n\nThe increase in operating earnings reflects a higher contribution from\n Power Financial Corporation (Power Financial), a subsidiary of the\n Corporation, and an increase in income from investments.\n\n\nSubsidiaries contributed $1,150 million to Power Corporation's operating\n earnings for the year ended December 31, 2011, compared with $1,097\n million in 2010. Results from corporate activities were a contribution\n of $43 million for the year ended December 31, 2011, compared with a\n net charge of $99 million in 2010. This increase is mainly due to\n income from investments generated by the Corporation's interest in the\n Sagard 1 fund in Europe which is managed by Sagard SAS, a wholly owned\n subsidiary of the Corporation, and income from other investment funds.\n\n\nOther items, not included in operating earnings, represented a charge of\n $77 million for the year ended December 31, 2011, compared with a\n charge of $230 million in 2010.\n\n\nOther items in 2011 include the Corporation's share of non-operating\n earnings of Power Financial's subsidiaries Great-West Lifeco Inc.\n (Lifeco) for an amount of $58 million and IGM Financial Inc. (IGM) for\n an amount of $23 million, as follows:\n\n\nIn the fourth quarter of 2011, Lifeco re-evaluated and reduced a\n litigation provision established in the third quarter of 2010. The\n re-evaluation positively impacted common shareholders' net earnings of\n Lifeco by $223 million. Additionally, Lifeco established a $99 million\n after-tax provision in respect of the settlement of litigation relating\n to its ownership in a U.S.-based private equity firm. The net impact to\n ...