Tuesday, May 2, 2006, 4:15 PM EDT (Thomson Corporate Group): Shares
edged higher on oil prices that rose to flirt with last month's record high
as the Iran nuclear stalemate fuelled supply fears. In corporate news,
Alcan posted stronger first-quarter results. Meanwhile, the loonie hit a
28-year high versus the U.S. dollar.
* The S&P/Toronto Stock Exchange Composite Index advanced 39.90, or
0.33%.
* The Canadian dollar vaulted over US$0.90 for the first time in more
than 28 years on high gold and energy prices, and some observers are
convinced that the federal budget could send it even higher.
* In corporate headlines, aluminum giant Alcan Inc. saw its
first-quarter profits more than double on rising revenues, a one-time gain
from the Enron bankruptcy in the U.S., high metals prices and improved
efficiency. The company earned US$45 million, or US$1.20 a share, for the
first quarter, up from net earnings of US$218 million, or US$0.58 a share,
for the same 2005 period. Quarterly revenues at the multinational company
rose to US$5.6 billion from US$5.2 billion.
* Gold futures climbed more than 1% to close at a 25-year high above
US$667 an ounce, as a weak U.S. dollar, strong energy prices and Iran's
nuclear ambitions stoked demand for the precious metal.
* Imperial Oil Ltd. is warning that costs are rising for its C$7.5
billion natural-gas pipeline in the Mackenzie Valley and could close the
project. Tim Hearn, chairman, president and CEO of Imperial, said new
estimates of the pipeline's cost are being calculated, and that they will
almost certainly go higher. Meanwhile, the firm posted stronger
first-quarter earnings of US$1.78 a share, up from US$1.12 a share a year
ago.
* Technology shares bounced higher on the day. ATI Technologies surged
on word it acquired Bitboys Oy, a mobile graphics firm based in Finland,
for approximately US$44 million.
* Denver-based brewer Molson Coors reported net sales of US$1.15
billion in the 13 weeks ended March 26, compared with US$1.05 billion a
year earlier. Sales volume from continuing operations was 8.6 million
barrels, or 10.1 million hectolitres, up 2% from a year ago. The net loss
of US$30.2 million, US$0.35 per share, compared with a year-ago loss of
US$34.2 million, US$0.54 per share.
* In U.S. corporate reports, within the automotive sector, General
Motors Corp. shares rose as investors took heart from a 2% rise in truck
sales in April, adjusted for one less selling day than in the year-ago
month. Car sales, however, tumbled 18%. The carmaker also raised its
second-quarter production outlook.
-- Michael.O'Brien@contractor.thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services 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
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SOURCE Thomson Financial Corporate Group
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