Power Corporation of Canada (TSX:POW) has reported a drop in first-quarter net earnings, reflecting among other things lower contributions from corporate activities and restructuring and other charges.
Power Corp. says net earnings attributable to participating shareholders for the quarter ended March 31 were $225 million or 49 cents per share, down from $260 million or 57 cents per share in the same 2012 period.
Operating earnings were $247 million or 54 cents per share, compared with $205 million or 45 cents per share, an increase of 20.2 per cent on a per share basis.
Subsidiaries of the management and holding company contributed $259 million to operating earnings, up from $240 million, but the contribution from corporate activities fell to just $1 million from $23 million.
Other items such as restructuring and other charges in the quarter and not included in operating earnings, represented a net charge of $22 million, versus a net contribution of $55 million in the year-earlier period.
The contribution to earnings from Power Financial (TSX:PWF) — 65.8 per cent owned by Power Corporation of Canada — was $268 million, up from $245 million in the 2012 period.
Power Financial, parent of Great-West Lifeco. (TSX:GWO) and IGM Financial (TSX:IGM), two of Canada’s largest non-bank financial services companies, reported its earnings Tuesday.
Among its other holdings, Power Corporation of Canada has media interests that include a stake in The Canadian Press news agency through its Gesca subsidiary.