06/16/2009 (10:45 am)

The week ahead

Filed under: money |

TODAY

CanWest Global: Deadline for an agreement in principle with its bondholders on a restructuring plan.

StatsCan: Releases manufacturing sales for April.

Bank of Canada: Releases June issue of the Financial System Review.

TUESDAY

StatsCan: Releases first-quarter labour productivity report.

WEDNESDAY

StatsCan: Releases wholesale trade for April and leading indicators for May cash loan till in one hour.

THURSDAY

Earnings: Research In Motion reports first-quarter results.

StatsCan: Releases consumer price index for May and April travel between Canada and other countries..

FRIDAY

AGM: HudBay Minerals

StatsCan: Releases retail sales for April.

Source

06/15/2009 (4:18 pm)

CAE wins $115 million worth of new contracts

Filed under: legal |

LE BOURGET, France – Pilot trainer and aviation technology provider CAE Inc. says it has won a series of contracts from U.S. defence contractor Lockheed Martin and an undisclosed customer to design and manufacture four C-130 simulators and several training devices for military customers around the world.

The contracts were signed over the last three months and are worth more than C$115 million in total, CAE (TSX: CAE ) said in a release from the Paris Air Show on Monday.

Of that total, more than C$60 million will be applied to CAE’s 2010 fiscal year.

Under the deals, Bombardier will:

– Build C-130 simulators and training devices for the Indian Air Force, U.S. Air Force, including Air Force Special Operations Command, and an undisclosed customer.

– Provide comprehensive C-130H aircrew training for the undisclosed customer low cost car insurance.

"Over the past two decades, CAE has delivered more training systems for the C-130 than any company so we’re pleased to continue building on this experience and look forward to furthering our relationship with Lockheed Martin and our other customers in providing training systems to global militaries flying the C-130," said Martin Gagne, CAE’s group president of military products, training and services.

CAE is a world leader in providing simulation and modelling technologies and integrated training for the civil aviation industry and defence forces. The Montreal-based company employs 6,500 people and has annual revenues of more than C$1.6 billion.

Source

06/14/2009 (11:00 pm)

Consumer sentiment sours as prices rise

Filed under: term |

Consumer attitude toward the economy may be ebbing as prices start to rise.

Confidence among U.S. consumers rose for a fourth straight month in June, reinforcing signs of an impending end to the recession but failed to meet economists’ expectations.

The Reuters/University of Michigan preliminary index of consumer sentiment increased to 69, from 68.7 in May. The confidence index was forecast to rise to 69.5, according to the median of 62 economists surveyed by Bloomberg News.

While the overall index rose, an index of consumer expectations for six months from now, which more closely projects the direction of consumer spending, fell to 65.4 in June from 69.4 the prior month.

"Consumers are acknowledging some improvement is under way, but they’re not seeing a tremendous potential for upside in the economy," said Stephen Gallagher, chief U fast cash.S. economist at Societe Generale in New York.

Meanwhile, a Labor Department report on Friday said prices of imported goods jumped in May as oil costs climbed. The import-price index rose 1.3 percent in May, the most since July and in line with forecasts, a Labor Department report showed in Washington. The reemergence of commodity-price inflation threatens to stunt the economic recovery and constrain corporate-profit growth.

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06/13/2009 (3:33 pm)

Chrysler to restart production

Filed under: online |

The Grand Caravans, 300s and Chargers could be rolling off the assembly lines at Chrysler Canada plants within three weeks as the company’s parent pulls away from bankruptcy protection with a new partner following a two-month shutdown.

Although Chrysler would not confirm dates, the Canadian Auto Workers union said yesterday that company officials have suggested privately they want to reopen the minivan plant in Windsor, a car operation in Brampton and an engine casting factory in Etobicoke by June 29.

"There’s no official notification yet, but we are optimistic the plants will be up and running by the end of the month," said Jerry Dias, a senior CAW official. "The company hopes to start by then."

About 8,700 workers at Chrysler Canada Inc.’s operations have been off the job since the end of April, when the parent company gained court protection from creditors in the United States. Thousands of other workers at scores of parts makers that supply the assembly plants have also been idled.

Chrysler had wanted to build autos during a 30- to 60-day bankruptcy period but uncertainty over the process and payments prompted some edgy suppliers to stop deliveries. It disrupted operations here and in the U.S., where about 27,000 more workers are on layoff.

Chrysler spokespersons said yesterday they did not know when plants in Canada or the U.S. would reopen.

Dias, assistant to CAW president Ken Lewenza, said Chrysler wants to start building vehicles as soon as possible to improve consumer confidence.

Chrysler sales crashed in Canada and the U.S. last month partly because of uncertainty over the company’s future, according to industry watchers how to get a free credit report.

Dias said Chrysler has already recalled some staff to ease the transition to work practices set by Italian automaker Fiat SpA, Chrysler’s new owner.

"We’ve already incorporated a lot of the lean manufacturing techniques so it shouldn’t be too difficult," he added.

Parent company Chrysler LLC emerged from court protection yesterday after Fiat took ownership of most of its assets, including the Canadian operations.

Chrysler announced Fiat chief executive officer Sergio Marchionne, who grew up in Toronto, would also head the company.

Marchionne spoke to senior staff at Chrysler’s headquarters in Auburn Hills, Mich., about the company’s push to implement Fiat’s fuel-efficient technologies in smaller cars in North America and develop a new corporate culture.

"He told us bureaucracy doesn’t build cars," said Lewenza who heard Marchionne’s speech. "He really emphasized the need for fewer managers and the need for everyone to help change the culture."

The company announced several management changes – including the appointment of president Jim Press as deputy chief executive – and individual presidents for the Chrysler, Dodge and Jeep brands. Reid Bigland, Chrysler Canada’s CEO, will stay in his current post.

Chrysler LLC CEO Bob Nardelli informed staff of his departure while Stephen Landry, executive vice-president of North American sales and a former CEO of Chrysler Canada, confirmed his retirement.

Source

06/11/2009 (12:36 pm)

Ousted Chrysler dealer files suit

Filed under: legal |

A Wentzville auto dealer filed a lawsuit Wednesday alleging that several of Chrysler’s executives and employees conspired to "drive the dealership out of business."

Century Motor Corp., which sold new Dodge, Chrysler and Jeep vehicles, claims the group worked to make sure the dealership was among hundreds of dealers nationwide that were cut by the automaker, according to the suit filed in St. Charles County Circuit Court.

Last month, Chrysler announced it would eliminate 789 dealers, including Century, from its operations. The action was approved by a bankruptcy judge this week.

Century claims there was no business rationale for including it on the termination list. The action was a retaliation for previous legal battles with the automaker, according to the dealership.

"We’ve been profitable. We’ve been a five-star dealer since the start of the program," said Kevin Mock, Century’s sales manager.

The lawsuit does not name Chrysler as a defendant, but it does name former Chief Executive Bob Nardelli, former President Tom LaSorda, sales chief Steven Landry and nine other employees. One of those is Jim Press, who is now deputy chief executive of the restructured Chrysler Group LLC.

Century Motor seeks punitive and compensatory damages. "There has to be some accountability," said Century’s lawyer, Chet Pleban of Pleban & Associates LLC in Richmond Heights.

Mike Palese, a Chrysler spokesman for legal matters, said he couldn’t comment on behalf of the individuals cash till payday advance. Katie Hepler, another company representative, said the executives were "not doing interviews on any issue."

In Wednesday’s filing, Century outlined its two previous lawsuits against Chrysler. The first was in 2004, after the automaker "arbitrarily" doubled Century’s minimum monthly sales quota and then threatened the dealership when it could not meet those goals. Century and Chrysler reached a settlement.

Century said it filed another suit in 2006 for a price discounting program but then dismissed its claims last year because the program was discontinued.

Century claims in its latest lawsuit that based on the previous legal skirmishes, Chrysler executives and employees encouraged the automaker to add another dealership in O’Fallon, Mo., in October 2007 as a way to put Century out of business. Eventually, the executives and employees placed the dealership on the termination list, according to the suit. The dealership’s last day as a Chrysler Dodge Jeep franchise was Tuesday.

Mock said Century would stay open as a used-vehicle center that also offers repair and maintenance.

Without reading the case, University of Michigan law professor John Pottow said it would be tough for Century to win.

"What is the motive for individual executives to put a dealer in Missouri out of business?" said Pottow, an expert in bankruptcy and commercial law.

Source

06/10/2009 (4:21 am)

Heritage Oil agrees to $3-billion merger

Filed under: term |

CALGARY – A Heritage Oil Ltd. (TSX: HOC) executive says a $3-billion combination with Turkey's Genel Enerji A.S. would give the new company a top position in Northern Iraq's burgeoning oilfields.

"It will be the leading oil and gas company in Kurdistan. It will have a unique position and that unique position comes from its first mover advantage," said Paul Atherton, chief financial officer of the U.K-headquartered firm, which has offices in Canada and trades on both London and Toronto stock exchanges.

Heritage and Genel announced Tuesday that they had reached a tentative reverse-takeover deal, which would create a regional exploration giant with core operations in Kurdistan and Uganda.

Genel was awarded a license to develop Kurdistan's Taq Taq field in 2002 "way before anyone else," Atherton told an analyst conference call.

"In terms of Kurdistan we were one of the first in. The first in was Ganel," he said.

Heritage has operated in the autonomous and relatively peaceful Iraqi region since 2004.

Under the terms of the agreement, Heritage would double its current share capital by issuing 260 million new shares, receiving all of Genel's shares in return.

Based on Monday's closing price of Heritage shares on the Toronto Stock Exchange, which ended the day at $11.62, the deal is valued at about $3.02 billion.

In early TSX trading Tuesday, Heritage shares rose 63 cents to $12.25, a gain of 5.4 per cent.

Genel is a private, independent oil explorer and producer in Turkey, with interests in producing oilfields in Iraq and other properties.

Heritage has a producing property in Russia and other exploration projects in Kurdistan, Uganda, the Democratic Republic of Congo, Malta, Pakistan, Tanzania and Mali.

Last week, Heritage requested a suspension of its shares on the London Stock Exchange after confirming it was in reverse-takeover talks with an unnamed third party health insurance plans. The suspension will be lifted on Tuesday.

Heritage said the expanded company will have proved and probable reserves of about 300 million barrels and potential for millions more.

The takeover, which is subject to shareholder and regulatory approval, is slated to close during the third quarter of 2009.

"The potential combination of our two companies brings together a long held ambition to develop the assets in our core areas," Heritage CEO Tony Buckingham, who will serve as executive chairman of the new company, said in a statement.

Genel CEO Mehmet Sepil will be CEO of the combined entity.

"The combination of Heritage with its worldwide experience and Genel's Turkish nationality together with its significant long experience and track record in the Kurdistan Region would help to develop our assets in an efficient and timely manner and would deliver excellent value to all stakeholders including the people of Iraq," he stated.

The new company will be called HeritaGE, incorporating Genel's name by capitalizing the final two letters.

In May, Heritage said it had made a major oil discovery in Kurdistan, with an oil-in-place estimate of between 2.3 billion to 4.2 billion barrels and a recovery factor expected between 50 and 70 per cent.

Addax Petroleum Corp., (TSX: AXC) another Canadian-listed company with headquarters overseas, has been active in Iraq, with licenses in the Taq Taq and Sangaw North fields in Kurdistan.

The Geneva-based firm acknowledged Monday that it is in “preliminary discussions" with another company about a "potential transaction."

There has been speculation in Chinese media reports that one of that country's state-owned oil firms could be interested in buying Addax.

Source

06/09/2009 (3:51 pm)

Tackling offbeat employment for off-season Argos

Filed under: management |

Working at an off-season job is hardly unusual for Canadian Football League players.

Risking your life in an off-season job certainly is.

But that’s what Toronto Argonauts defensive end and special teams player Raymond Fontaine did over the winter as he took a different route and worked as a roughneck in the Alberta oil fields.

"You have to constantly be aware of the hazards because there are many, many dangerous things out there," says the 28-year-old Ottawa native as he prepares to open camp with the team this morning. "You could sprain an ankle and you could kill yourself."

Most members of the Toronto Argonauts went the traditional route and exchanged football jerseys for suits after last season ended.

Defensive tackle Adriano Belli worked in the family meat business. Offensive lineman Jeff Keeping worked in his family’s sign business.

Running back Jeff Johnson sold real estate while fellow ball carrier Andre Durie continued his jobs working with intellectually challenged people and foster children.

But Fontaine was the only who exchanged his jersey for a fire-retardant suit and steel-toed boots rated for 100-degree temperatures.

The high salaries paid to oil workers – roughnecks are paid about $25 an hour – were certainly part of the lure for Fontaine. But the main attraction was his hope that this winter in the wilds of northern Alberta might lead to a post-football career in the oil business.

"This was much more hands-on than what my degree (agricultural economics) prepared me for, but it gave me a great insight into the business," he says.

That it did. He woke up every morning at 4:45 and toiled 12 to 15 hours a day for Nabors Industries, hauling 180-kilogram pipes and servicing oil wells outside the town of Fox Creek, Alta.

"It was very physically demanding and when you’re working that long you have to have your head in it, too," says Fontaine, who worked 21 days straight before getting seven off. "The best part of working out there was being outdoors and seeing that sunrise and sunset every day."

The Alberta winter did make working outdoors a challenge.

"I’d never been in minus-40 weather, having your safety glasses fog up and frost on your beard," he says. "I thought that only happened to people going up Mount Everest."

While the job had its dangers, Fontaine says he never felt threatened because there was such an emphasis on safety.

Every day began with a review of the company’s safety rules.

And although his previous off-season jobs were in offices, he didn’t feel out of place. Two of his fellow workers were also athletes; a retired pro hockey player and a former martial arts fighter one hour cash loan.

But that didn’t save Fontaine from the usual rookie hazing.

"They’d send me on little missions, to get the pipe stretcher and the bucket of steam," he says with a laugh. "It was good fun and made it like being part of a football team."

And while 15-hour days aren’t conducive to preparing for football, Fontaine says he’s in excellent shape because of the job. He used his off weeks to train, but says trudging through snow and hoisting pipes provided a great workout.

Other Argos spent the winter in less physical pursuits.

Durie has several incentives for pursuing his off-field careers, which involve providing support for clients in all aspects of life from overseeing diet to helping with job applications to taking foster children on outings.

His mother worked with the mentally challenged and his 7-year-old son has an intellectual disability.

"It was kind of like a way to help him from inside the organization," says Durie, who studied sociology at York University before working for Community Living Mississauga and the Children’s Aid Society.

While the added income helps augment the traditionally low CFL salaries – and he continues both jobs part-time through the playing season – Durie says the jobs have other rewards.

"I’ve been through a lot of injuries, but you get a different outlook on life when you work with them," he says. "It’s not the same struggle they’re going through, but you learn a lot from them.

"The strength of some of these people is pretty impressive."

Johnson has worked as a personal trainer throughout most of his nine-year career, mainly because an off-season job is a necessity.

"You have to prepare yourself for life after football because it can end any day," he says. "I count every year as a blessing."

He decided to switch off-season careers after seeing a better future in sales. After getting his licence, he went to work with his stepfather, uncle and cousin at Century 21 Brown in Etobicoke. His timing may have seemed off considering the economy, but Johnson says it’s all working out well.

"I think it was the best time to get in," says the Toronto native. "A lot of people had it land in their laps, but I had to lay the foundation properly and pursue different angles to make the business grow.

"You get out of it what you put into it, just like in football."

Source

06/08/2009 (5:18 pm)

Markets head for weaker open

Filed under: term |

North American markets appear poised for a lower open Monday following declines in Europe, as investors show an inclination to take a pause in a three-month rally.

With little Canadian or U.S. economic data due out early in the week, investors could book some gains and try to determine if the recent surge has been overdone.

Markets have skyrocketed since March amid hopes the recession might be moderating, with Toronto's major index climbing nearly 40 per cent.

Despite some signs of improvement, concerns linger about the global economy.

Interest rates on U.S. government bonds are edging higher, unemployment continues to rise and oil prices are near six-month highs.

That has left investors concerned about the sustainability and size of a potential recovery.

On Friday, the Toronto stock market racked up a solid gain as investor enthusiasm about higher commodity and tech stocks offset concerns about a grim Canadian employment report.

But New York markets were weak as investors had a muted reaction to U.S. employment data that showed the pace of layoffs slowed radically in May.

Toronto's S&P/TSX composite index was 92.05 points higher to 10,569.29, while the Dow Jones industrial average closed up 12.89 points to 8,763 custom business cards.13.

Earlier Friday, Statistics Canada reported 41,800 jobs were lost in May, with most of the job losses coming in the manufacturing heartland of Ontario. The country's unemployment rate ran up to an 11-year high of 8.4 per cent, from eight per cent in April.

Ahead of Monday's market open, Dow futures fell 77, or 0.9 per cent, to 8,685. Standard & Poor's 500 index futures declined 9.10, or one per cent, to 931.4, while Nasdaq 100 index futures fell 15.5, or one per cent, to 1,479.50.

The Canadian dollar opened at 88.82 cents US, down 0.45 of a cent from Friday's close.

Light, sweet crude for July delivery was down 85 cents to fetch US$67.59 a barrel by noon in European electronic trading on the New York Mercantile Exchange.

Overseas, major European markets all fell by more than one per cent. In afternoon trading, Britain's FTSE 100 fell 1.4 per cent, Germany's DAX index declined 1.7 per cent, and France's CAC-40 dropped 1.7 per cent.

Japan's Nikkei stock average rose one per cent while Hong Kong's Hang Seng index slipped 2.3 per cent.

Source

06/04/2009 (11:27 pm)

A lot is riding on the Palm Pre

Filed under: online |

NEW YORK — When Palm Inc.’s and Sprint Nextel Corp.’s latest smart phone, the Pre, arrives Saturday, it will be entering an increasingly crowded market backed by parents that have a lot riding on its success.

The Pre — which costs $200 with a two-year service plan and rebate — might be most important to Palm, of Sunnyvale, Calif., the very company that helped usher in the handheld computing era with the original Palm Pilot in 1996. These days, Palm needs a resurgence in a market largely dominated by Apple Inc.’s iPhone and Research In Motion Ltd.’s BlackBerry devices.

For Sprint, of Overland Park, Kan., which has been bleeding subscribers to other wireless carriers, the Pre represents a chance to snare new customers while getting current ones to "trade up" from a regular cell phone to the Pre and its pricier service packages, which start at $70 per month.

The Palm Pre has a touch screen like the iPhone but also has a slide-out keyboard and runs on Palm’s new webOS software, which can run several applications at once. The iPhone’s software allows only certain programs to run concurrently.
The original Palm Pilot was all about organizing the user’s personal information, and the Pre will take that idea further by synchronizing contacts from Facebook, Gmail and Outlook into a single list — something else the iPhone can’t do paydayloans. The Pre will connect with Apple’s iTunes software and download music and photos as an iPhone or iPod can.

But the Pre will face rough competition. The iPhone continues to be a big draw at AT&T Inc., the exclusive U.S. carrier. And Apple might unveil a new version Monday at its annual conference for software developers. Meanwhile, other Sprint competitors are adding new smart phones to their lineups from RIM, Samsung Electronics Co., Nokia Corp. and others.

By necessity, Palm is betting the company on the Pre, Gartner analyst Ken Dulaney said, because if the handset isn’t popular, the company won’t have enough momentum to approach the smart phone market "with any kind of clout whatsoever."

BlackBerrys commanded 55.3 percent of the smart phone market in the first quarter, while the iPhone accounted for 19.5 percent, according to research firm IDC. Palm, meanwhile, had just 3.9 percent.

Source

06/03/2009 (5:33 am)

Turkmenistan asked to revise gas deals

Filed under: term |

Gazprom, Russia’s gas export monopoly, has appealed to Turkmenistan to review the terms of its gas contracts because of plunging demand and prices in Europe, a senior Gazprom official was quoted as saying by national agencies yesterday.

Russia earlier had agreed to buy Turkmen natural gas at European prices but it can no longer sell the gas at those prices to anyone, Gazprom deputy chief executive Valery Golubyev said in the Urals town of Chelyabinsk, Interfax new agency reported saving account payday loan.

"Either we revise the prices or the volumes," he said. Turkmenistan, which has the second-largest gas reserves in the former Soviet region after Russia, sells most of its gas to Gazprom for onward sale in Ukraine and Europe. But the Central Asian producer has shown interest in diversifying its exports to China and the West.

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