Bay Street Little Changed On Mixed Reports

Bay Street Little Changed On Mixed Reports

Tuesday, February 8, 2005, 10:15 AM EST: (Thomson Financial Corporate Group): Toronto shares are slightly lower this morning, as investors digest the latest round of earnings and economic releases. Alcan's quarterly release is being met by selling pressure, while Intrawest is bounding higher. Meanwhile, housing starts fell by a larger-than-expected amount in January. Investors are also looking forward to U.S. tech titan Cisco's quarterly release, due out after the close.

* The S&P/Toronto Stock Exchange Composite Index is slipping 3.75 points,
or 0.04%.

* Yesterday, the S&P/Toronto Stock Exchange Composite Index rose 13.61
points, or 0.15%.

* On the economic front, housing starts tumbled 14% in January to an
annual rate of 203,700 from an adjusted 236,300 in December. Economists
were looking for a smaller decline to 225,000 in the January reading.

* In earnings headlines, Alcan swung to a fourth-quarter loss from
continuing operations of US$1.44 a share, reversing year-earlier income
from continuing operations of US$0.35 a share. Operating earnings
arrived at US$0.30 a share, versus US$0.37 a share in the corresponding
period a year ago. The mean Thomson First Call estimate was US$0.52 a
share. Still, revenues rose to US$6.52 billion, reflecting the Pechiney
acquisition, from US$3.57 billion.

* Meanwhile, Novelis said that its fourth-quarter results will be similar
to those from last year. As part of its spin-off from Alcan, the firm's
fourth-quarter results will include a provision for withholding taxes of
about US$21 million.

* Oil prices continue to slide, as concerns subside regarding an impending
cut in production by OPEC and milder weather inhabits the Northeast U.S.
Elsewhere, gold shares are showing further weakness this morning, as the
U.S. dollar edges up against the euro.

* Turning to cyclical earnings, Intrawest swung to a second-quarter loss
of US$0.17 a share, after posting net income of a penny a share a year
ago. Net income before the after-tax cost of expensing the call premium
and unamortized costs on senior notes redeemed was US$0.34 a share,
versus US$0.22 a share a year earlier. Analysts expected US$0.29 a
share, on average, in a range from US$0.24 to US$0.37 a share, as
compiled by Thomson First Call.

* In research, UBS downgraded Shoppers Drug Mart to "neutral" from "buy,"
mostly due to the firm's valuation.

* In deal reports, ATI Technologies will acquire Terayon Communication
Systems cable modem silicon intellectual property for up to
US$14 million.

* South of the border, Electronic Data Systems posted a fourth-quarter
profit, reversing a restated year-earlier loss. Pro forma net income
arrived at US$0.25 a share in the most recent quarter, beating the mean
Thomson First Call estimate of US$0.22 a share. Sales slipped 5% to
US$5.25 billion from US$5.5 billion.

* Turning to the healthcare group, Lorus Therapeutics is rallying this
morning, after it announced a successful data safety monitoring board
review and pharmacokinetic results from the ongoing Virulizin phase III
clinical trial.

-- Linda.Shea@thomson.com; Thomson Financial Corporate Group



This is Thomson Financial Corporate Group's Canadian Commentary, which is updated twice daily. The information herein is believed to be true and accurate, we take no responsibility for inaccurate information and reserve the right to update our reports. For more financial information at your fingertips, please visit http://www.irchannel.com/. If you have any questions please e-mail James Sang at james.sang@tfn.com or call 646.822.6233. For more information about Thomson Financial visit us on-line at http://www.thomsonfinancial.com/.

PRNewswire -- Feb. 8


Source: Thomson Financial Corporate Group

Web site: http://www.thomsonfinancial.com/
http://www.irchannel.com/


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