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Reuters Canada Business Summary

28/08/08

Royal Bank of Canada profit slips on writedowns

TORONTO (Reuters) - Royal Bank of Canada said on Thursday its third-quarter profit fell 10 percent as results were hurt by capital markets charges and higher loan-loss provisions, largely in its U.S. banking operations. Canada's largest bank said net income was C$1.26 billion ($1.2 billion), or 92 Canadian cents per share, in the three months ended July 31. That compared with a profit of C$1.39 billion, or C$1.06 per share, in the same 2007 period.

TD Bank profit falls, but raises dividend

TORONTO (Reuters) - Toronto-Dominion Bank said third-quarter net income fell 10 percent as a difficult capital markets environment reduced profit in its wholesale business, but the bank raised its dividend. TD, Canada's second-largest bank, said it earned C$997 million ($949 million), or C$1.21 a share, in the three months ended July 31. That was down from C$1.1 billion, or C$1.51 a share, a year earlier.

Toronto stocks set for higher open with banks in focus

TORONTO (Reuters) - The Toronto Stock Exchange's main index was set for a higher open on Thursday, buoyed by strength in commodity-related stocks and as investors digest quarterly results from the country's banks including Royal Bank of Canada which delivered stronger-than-expected results. RBC said early on Thursday its third-quarter profit fell 10 percent, as it took capital markets charges and higher loan-loss provisions, largely in its U.S. banking operations. For details, see

Linamar to layoff another 400 workers

TORONTO (Reuters) - Linamar Corp , which makes precision automotive components for engines and transmissions, said it will announce about 400 layoffs later on Thursday. The layoffs will be spread out across Linamar's 38 plants worldwide, 22 of which are in Guelph, Ontario, and come on top of slightly under 400 workers already on layoff, a company spokeswoman said.

National Bank of Canada profit up 18 percent

TORONTO (Reuters) - National Bank of Canada said on Thursday that third-quarter profit rose 18 percent on better results in its financial markets and retail banking units, as well as a gain on the merger of Canada's derivatives and stock-exchange operators. Net income rose to C$286 million ($272 million), or C$1.73 per share, compared with C$243 million, or C$1.48 per share, in the same period the year before.

Toyota cuts sales forecast

TOKYO (Reuters) - Toyota Motor Corp cut its 2009 vehicle sales forecast by nearly 7 percent as high fuel prices hammer demand for large cars and pickup trucks, and said it will speed up the rollout of hybrid and electric cars as their popularity grows. The weaker outlook from the world's most profitable carmaker weighed on shares of European rivals and highlighted an increasingly difficult environment, where orders in the United States and Western Europe for high-margin, gas-thirsty vehicles is slumping.

U.S. crude futures up more than $2 on storm worry

NEW YORK (Reuters) - U.S. crude oil futures rose more than $2 on Wednesday, rising above $120 a barrel, as Tropical Storm Gustav was expected to keep moving toward the Gulf of Mexico, where it would threaten energy operations. On the New York Mercantile Exchange at 9:12 a.m. EDT, October crude was up $2.10, or 1.7 percent, at $120.25 per barrel, trading from $118.05 to $120.50.

CIBC stock jumps after bank ekes out slim profit

TORONTO (Reuters) - Canadian Imperial Bank of Commerce reported lower than expected charges on structured-credit investments as it booked its first profit in three quarters on Wednesday, giving its shares a hefty lift. Canada's fifth-biggest bank reported a 91 percent drop in third-quarter profit, as it was stung by further losses on structured credit investments and hedges related to the U.S. residential mortgage market.

Swift Canada high court decision sought on ABCP

OTTAWA (Reuters) - Both sides involved in a dispute over a restructuring plan for asset-based commercial paper (ABCP) asked the Supreme Court of Canada on Wednesday to expedite any hearings it might hold on the matter. "We're seeking a hearing by the end of September," said Howard Shapray, a lawyer for Ivanhoe Mines , which is opposing the plan to restructure the market, which was worth C$32 billion ($30 billion) before trading stalled last summer.

Canadian dollar firms as oil prices rise

TORONTO (Reuters) - The Canadian dollar edged higher against the U.S. dollar on Wednesday, helped by firming oil prices as Tropical Storm Gustav looked as though it might strengthen as it heads toward key oil installations in the Gulf of Mexico. Domestic bond prices rose on the short end, as traders bet the sell off in recent weeks had gone far enough, bringing yields back into line with interest rate expectations.

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