BUSINESS

Power Corp. reports $282M second-quarter profit, down from $356M a year ago

08/03/2012 12:05 EDT | Updated 10/03/2012 05:12 EDT
WINNIPEG - Power Corp. (TSX:POW) reported Friday a second-quarter profit of $282 million, down from $356 million, as results at its subsidiaries — including Power Financial Corp. (TSX:PWF) — slipped.

The Montreal-based conglomerate earned 62 cents per share for the quarter ended June 30, down from 77 cents per share a year ago.

Revenue totalled $8.52 billion, up from $7.95 billion.

In addition to its stake in Power Financial, Power Corp. owns Square Victoria Communications Group, which holds interests in La Presse publisher Gesca and Square Victoria Digital Properties.

Power Financial, which has stakes in the Mackenzie, Investors Group and other mutual fund operators as well as Great-West Life, earned $433 million or 61 cents per diluted share for the quarter.

That compared with a profit of $507 million or 71 cents per diluted share a year ago.

Revenue totalled $8.37 billion, up from $7.78 billion.

Power Financial said the results for the quarter were hurt by its share of a non-cash income tax charge recorded by IGM Financial Inc. and goodwill impairment and restructuring charges recorded by Lafarge SA (Lafarge).

For the quarter, Great-West Lifeco Inc. reported operating earnings attributable to common shareholders of $491 million or 51.7 cents per share, down from $526 million or 55.3 cents per share a year ago. Its contribution to Power Financial's operating earnings totalled $336 million for the quarter, compared with $360 million in the same period in 2011.

IGM Financial Inc., which owns Investors Group and Mackenzie, earned operating earnings available to common shareholders of $179 million or 70 cents per share, compared with $213 million or 82 cents per share a year ago. Its contribution to Power Financial's operating earnings amounted to $104 million, compared with $125 million.

Power Financial also holds a 50 per cent interest in Parjointco N.V., which in turn holds a 56.5 per cent equity interest in Pargesa, a holding company with significant positions in several European industrial companies including Lafarge.

Pargesa's contribution to Power Financial's operating earnings was $56 million for the quarter, down from $63 million.