Power Financial Corp. (PWF.TO: Quote) Friday reported a decline in profit for the second quarter, as contributions from IGM Financial unit and Great-West Lifeco dropped.
Power Financial's revenues for the second quarter grew to C$8.37 billion from C$7.78 billion last year. Analysts estimated revenues of $7.94 billion for the quarter.
Winnipeg, Manitoba-based Power Financial's net earnings dropped to C$433 million or C$0.61 per share from C$507 million or C$0.71 per share last year..
Profit for the quarter included non-cash income tax charge recorded by IGM Financial Inc. of $15 million.
Excluding the special item, operating earnings for the quarter were C$448 million or C$0.63 per share. On average, seven analysts polled by Thomson Reuters expected earnings of C$0.60 per share for the quarter. Analysts' estimates typically exclude special items.
Power Financial is a holding company with stake in companies in the financial services sector in Canada as well as in Europe. The company owns majority stakes in asset manager IGM Financial (IGM.TO) and insurer Great-West Lifeco (GWO.TO). The company also holds a stake in Netherlands-based Parjointco N.V., which in turn holds a 56.5 percent interest in Pargesa, a holding company.
IGM profits dropped to C$179 million or C$0.70 per share, down from C$213 million or C$0.82 per share in the prior year. Its contribution to Power Financial's operating earnings was C$104 million, compared with C$125 million for the corresponding period in 2011.
Great-West Lifeco for the quarter reported earnings of C$491 million, or C$0.517 per share, compared to $526 million or $0.553 per share last year. Its contribution to Power Financial's operating earnings was C$336 million, up from C$360 million a year earlier.
Pargesa's contribution to Power Financial's operating earnings for the quarter was C$56 million, compared to C$63 million last year.
PWF.TO is currently trading at C$24.91, up C$0.35 or 1.43%, on a volume of 0.1 million shares.
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by RTT Staff Writer
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