Business
Mixed start to week
Mixed start to week
About this update from Precision Drilling Corporation
[{"type":"text","content":"\nMixed start to week\n\nN.Y. recovers\n Feb. 9, 2009 (Baystreet.ca) -- 11:18 am EST\nMarkets in North America were mixed Monday morning, amid reports more layoffs could be distributed throughout the economy. New York stocks came around by mid-morning Monday, after slipping a bit as investors considered the ongoing U.S. economic stimulus debate and a delay in the announcement of the bank bailout plan.The S&P TSX Composite Index surged 118.73 points mid-morning to 9,126.75More Canadian companies are expected to dole out pink slips this week as earnings season heats up and weaker results could cause corporate Canada to pare costs to deal with a worsening recession.Dismal earnings reports often run hand-in-hand with job cuts, and economists say times will be rough for some domestic companies, as their partners and customers in the United States suffer.South of the border, the layoffs have been drastic and deep in recent weeks, when U.S. giants such as heavy equipment maker Caterpillar Inc., software firm Microsoft Corp., aluminum company Alcoa Inc. and chip maker Intel used their first-quarter reports to reveal tens of thousands of job cuts.The prediction is that many Canadian companies will either post significant profit drops or widen their losses for the final months of 2008 - and workers will be on the chopping block because of it.On the earnings schedule this week are key companies like Calgary-based fertilizer producer Agrium Inc. and Caterpillar dealer Toromont Industries Ltd. Both could become victims of downturns across their own industries.Other companies reporting include energy giants EnCana, Enbridge and Precision Drilling, beer maker Molson Coors, pilot trainer CAE Inc. and discount airline WestJet. Agrium has already laid off 380 workers, but has also said it will write down the value of its operations by $115 million U.S. in its fourth-quarter report and shut down production at its Fort Saskatchewan nitrogen facility.Toromont Industries Ltd. could also take a hit from a downturn at Caterpillar, which is cutting 20,000 jobs, or about 18% of its workforce on weaker sales.Finning International Inc. has already laid off 700 people, about 5% of its workforce, but so far Toromont hasn't announced any staff reductions,The Canadian dollar jumped 0.33 cents to $81.95 cents U.S.BAYSTREET\n \nOf the 13 TSX sub-groups, 11 w...