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Reuters Canada Business Summary

28/08/08

RBC profit falls, but better than expected

TORONTO (Reuters) - Royal Bank of Canada , Canada's biggest bank, reported quarterly earnings that beat market forecasts and it took lower charges than many analysts had expected, helping to boost its shares 4.2 percent. Third-quarter net profit fell 10 percent after C$498 million in writedowns, to C$1.26 billion ($1.2 billion).

Toronto stocks higher on strength in financials

TORONTO (Reuters) - The Toronto Stock Exchange's main index shot higher on Thursday, buoyed by strength in the hefty financial services sector with Royal Bank of Canada , Canada's biggest bank, delivering stronger-than-expected results. Financials raced 2.5 percent higher with RBC up 5 percent at C$47.53. Early on Thursday, Canada's biggest bank said third-quarter profit fell 10 percent after taking C$498 million in write-downs, but the charges were lower than many had feared and underlying profit beat market expectations.

Canada current account surplus grows on energy boom

OTTAWA (Reuters) - High prices for energy exports boosted Canada's current account surplus in the second quarter, but the gain fell short of expectations and cements the view that quarterly economic growth will be tepid at best. The surplus rose to C$6.76 billion ($6.44 billion) from a downwardly revised second-quarter surplus of C$4.46 billion, Statistics Canada said on Thursday.

TD Bank profit falls, but bank hikes dividend

TORONTO (Reuters) - Toronto-Dominion Bank said third-quarter net income fell 10 percent as a difficult capital markets environment slashed wholesale banking profit. Although earnings were slightly below market expectations, TD was the only Canadian bank to boost its dividend this quarter and its shares rose 2 percent in early trading.

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.

Canadian dollar inches higher as oil prices firm

TORONTO (Reuters) - The Canadian dollar was slightly higher against the U.S. dollar on Thursday, as the price of oil briefly rose above $120 a barrel and remained well bid on fears that Tropical Storm Gustav would damage oil and gas platforms in the U.S. Gulf. Domestic bond prices fell along with the larger U.S. market after data was released showing U.S. economic growth for the second quarter was revised sharply higher.

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.

Oil near $120 as Gustav threatens U.S. Gulf

LONDON (Reuters) - Oil briefly touched $120 a barrel on Thursday, its fourth day of gains, boosted by the threat of damage to U.S. oil installations from Tropical Storm Gustav. The storm is forecast to reach hurricane status as it approaches the Gulf of Mexico, home to a quarter of U.S. crude oil production and 15 percent of its natural gas output.

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.

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