Guardian Capital Group Ltd. is reporting weak results for its latest quarter. Net earnings were $447,000 or 2¢ per share fully diluted in the first quarter of 2001 compared with $1,926,000 or 10¢ per share in the first quarter of 2000. Cash flow from operations this quarter was $3.2 million, 9.4% higher than the same quarter in 2000.

The company says the drop in net earnings is primarily due “to declining mutual fund redemptions, resulting in a short-term negative effect on earnings. The difference between realized gains on the sale of securities in the first quarter of 2000 and the realized losses in the current quarter equates to an earnings effect of 6¢ per share.”

Client assets under management amounted to $9.5 billion at March 31, 2001, compared with $10.3 billion as at March 31, 2000. Gross revenue decreased by 11.6% for the  quarter. The decrease in gross revenue was mainly due to lower income from investments and lower redemption fees. Operating expenses for the quarter were more or less flat at $9.4 million.