Archives for May 10, 2019

Canadian Tire Corp. reported its first-quarter profit fell compared with a year ago as revenue moved higher.

The retailer says it earned a profit attributable to shareholders of $69.7 million or $1.12 per share for the quarter ended March 30.

That compared with a profit of $78 million or $1.18 per share a year earlier.

Revenue totalled $2.89 billion, up from $2.81 billion in the first quarter of 2018.

The increase in revenue came as retail sales at its Canadian Tire stores increased 7.4 per cent and comparable sales gained 7.1 per cent.

Meanwhile, sales at its SportChek stores gained 2.8 per cent, while comparable sales rose 3.4 per cent. Mark’s sales grew 5.5 per cent, while comparable sales at the clothing chain increased 4.9 per cent.

The Hamilton Chamber of Commerce survey reports members unsatisfied with transportation infrastructure

Hamilton businesses are confident about their individual futures, but not so optimistic about the overall economic landscape in Ontario, a report suggests.

Growing client bases and increased demand for products and services are pushing up the confidence of business owners, but the high cost of living, provincial debt and prices for raw materials and electricity are pushing down confidence.

The results were published this week by the Hamilton Chamber of Commerce in its 2019 Hamilton Economic Report, which takes a snapshot of the outlook of local businesses.

According to the report, 56 per cent said the high cost of living is the one of the main reasons for their lack of confidence in the future of Ontario.

“The results demonstrate Hamilton businesses are extremely confident in their individual firm’s economic projections. This shared optimism accounts for 64 per cent of all respondents,” read the report. 

“Overwhelming evidence suggests Hamilton businesses have a high degree of confidence in the future. Firms project increases in both revenue and workforce size in the months ahead,” said Hamilton Chamber of Commerce president and CEO, Keanin Loomis.

Although businesses have a positive outlook, the study found that they aren’t satisfied with existing pubic transportation infrastructure.

One in four people rated it as “poor” in terms of its ability to meet organizational needs.

“However, with one in four businesses unsatisfied with the ability of existing public transportation infrastructure to meet their organizational needs, we clearly need to do better.”

Of the 1,000 members that employ 75,000 people in the area, 129 completed the survey that was conducted between the end of September to the beginning of November.

The purpose of the annual survey of business owners — all members of the chamber — is to capture the “mood” of Hamilton businesses, particularly as it relates to the economy, the report said.

The chamber says it looks forward to working with all levels of government to take advantage of opportunities that will increase economic growth for businesses across the city.

The head of Quebecor Inc. says he is exploring a possible acquisition of Montreal-based tour operator Transat A.T., but another prospective buyer is already a step ahead.

Chief executive Pierre Karl Peladeau said Thursday he has commissioned a financial analysis by an investment firm.

“I believe it’s a very good brand. I think Quebeckers like Transat,” he said Thursday after Quebecor’s annual shareholder meeting. “I will continue to fight for Quebec companies to stay here. I think that that could be an interesting…opportunity.”

Peladeau is not alone. Developer Vincent Chiara, who owns Groupe Mach, which bought the former CBC tower in Montreal in 2017, told The Canadian Press he has already submitted an offer following several months of talks.

“We had the idea of building a portfolio in the hospitality industry and they had a platform and projects in their plans to build exactly that,” said Chiara, referring to Transat’s $750-million plan to develop a hotel chain in Mexico’s Riviera Maya and the Caribbean.

He said Transat’s fleet of about 40 planes is particularly appealing.

“They have the means to move the passengers who go to the destination…They have an important capacity to fill rooms and with this capacity there, we eliminate a lot of risks for hotel development.”

“Of course, we want to privatize. Our proposal is to buy out all the shareholders,” he added.

Transat confirmed last week it had spoken with several parties about a possible sale of the company.

Quebecor more than doubled its dividend as it reported its first-quarter profit rose compared with a year ago.

The media and telecommunications company said Thursday it will now pay a quarterly dividend of 11.25 cents per share, up from 5.5 cents.

The increased payment to shareholders came as Quebecor says it earned $189.0 million or 74 cents per share in the first quarter of 2019, up from $57.1 million or 24 cents per share a year earlier.

Revenue totalled nearly $1.03 billion for the quarter ended March 31, compared with $1.00 billion in the first quarter of 2018.

Employees have until May 29 to enrol in program

The Globe and Mail has offered its employees a voluntary severance program in an effort to cut costs.

Globe employees were told Wednesday that the newspaper is looking to cut $10 million annually from its operating budget.

A Globe spokeswoman says employees have until May 29 to enrol in the voluntary program and the company will decide in July if involuntary layoffs are necessary.

The union that represents media workers at the Globe called it a “sad day” in a bulletin to staff on Wednesday.

“Less than a week after proudly celebrating its award-winning journalism at the National Newspaper Awards — quality journalism that is only made possible because of the talent and dedication of its reporters, editors, visual journalists, ad revenue staff and others — the employer has decided to drastically cut staff,” wrote the union’s unit chair Mason Wright.

At the industry awards ceremony held in Toronto last week, the Globe won 10 out of 21 categories.

4th round in recent years

This is the fourth time the newspaper has offered a voluntary buyout since 2009.

The Globe and Mail last offered voluntary severance to its employees in 2016. At the time, it offered voluntary buyouts to 40 of its approximately 650 staff in a bid to “right-size the business as it adjusts to market forces.”

The newspaper also offered a voluntary buyout in 2013, when 60 staff chose to leave.

Prior to that, the Globe and Mail in 2009 offered buyouts as part of a plan to cut about 10 per cent of its workforce, which amounted to 80 jobs at the time.

The Globe and Mail is wholly owned by the Woodbridge Company Ltd., a private holding company that acts as the primary investment vehicle for Toronto’s billionaire Thomson family.