bombardier

NOVA CHEMICALS CORP. $37 (Toronto symbol NCX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 82.6 million; Market cap: $3.1 billion; SI Rating: Extra risk) lost $9.46 a share (total $781 million) in the fourth quarter of 2006, mostly due to a $772 million after-tax restructuring charge (all amounts except share price in U.S. dollars). It lost $0.80 a share ($66 million) in the year-earlier quarter. Revenue rose 14.3%, to $1.6 billion from $1.4 billion. Nova is making good progress with its restructuring plan. It has already cut $127 million out of its annual costs, and should save $140 million a year by 2008. Nova Chemicals is a buy....

BOMBARDIER INC. (Toronto symbols BBD.A $3.91 and BBD.B $3.90; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Extra risk) is the world’s third-largest maker of commercial passenger aircraft behind Boeing and Airbus. The aerospace unit supplies roughly 55% of Bombardier’s revenue, and 60% of its profit. The remaining revenue and earnings come from Bombardier’s transportation division, which is the world’s largest maker of passenger railway cars. Overseas customers account for 95% of Bombardier’s total revenue. In its third fiscal quarter ended October 31, 2006, Bombardier earned $0.03 a share (total $53 million) from continuing operations (all amounts except share price in U.S. dollars). It lost nil per share ($1 million) in the year-earlier quarter, which included a $25 million pre-tax restructuring charge. Revenue rose 3.0%, to $3.4 billion from $3.3 billion....

RIOCAN REAL ESTATE INVESTMENT TRUST $25, has raised its monthly cash distribution 2.3%, from $0.1075 a unit to $0.11. The new annual rate of $1.32 yields 5.3%. Buy. LEGACY HOTELS REAL ESTATE INVESTMENT TRUST $9.40 has agreed to buy a 398-room hotel in Calgary for $53.5 million. It will also spend a further $4 million on renovations. To put that in context, Legacy earned $13.3 million or $0.15 a unit in the second quarter of 2006. But the Calgary market is growing fast, and this purchase should add to its future cash flow. Best Buy. HART STORES INC. $5.30, earned $0.14 a share in its second fiscal quarter ended July 29, 2006, up 27.3% from $0.11 a year earlier. Sales grew 12.6%, to $39.4 million from $35.0 million, thanks to the strong performance of its five new Ontario junior department stores. It plans to open three more stores in Ontario in the third quarter. That would give Hart a total of 76 stores, including 10 in Ontario. Buy....

ROYAL BANK OF CANADA $47 (Toronto symbol RY; SI Rating: Above average) is the first of Canada’s five big banks to sell car and property insurance policies over the Internet; it already offers life and travel policies online. In the past, Royal could only provide rate quotes; prospective clients had to contact Royal’s insurance operations separately to buy. The bank hopes Ottawa will soon let banks sell insurance through branches. That would cut Royal’s costs and boost profits. Royal Bank is a buy....

BOMBARDIER INC. $3.02 continues to win new railcar contracts. It has just agreed to supply French National Railways with $343 million U.S. worth of trains. That’s equal to about 2% of Bombardier’s annual revenue. However, demand for the company’s planes, particularly regional jets, remains soft. Hold. ARBOR MEMORIAL SERVICES INC. $22 earned $0.45 a share before unusual items in its fourth fiscal quarter ended October 31, 2005, down 10% from $0.50 a year earlier. Revenue fell 5.9%, to $50.9 million from $54.1 million. The recent acquisition of an Ottawa area funeral home should help earnings in 2006. Buy. FORDING CANADIAN COAL TRUST $42 paid a fourth quarter cash distribution of $1.60 a unit, down 11% from $1.80 in the third quarter. Customers are delaying new orders for coal until they use up their excess inventories. A shortage of tires for big mining trucks will also hurt production at its Elk Valley coal mine. However, these are temporary setbacks, and the new implied annual rate of $6.40 a unit still yields 15.2%. Buy....

BOMBARDIER INC. (Toronto symbols BBD.MV.A $2.43 and BBD.SV.B $2.42; SI Rating: Extra risk) lost $9 million in its third fiscal quarter ended October 31, 2005, compared with a profit of $10 million a year earlier (all amounts except share price in U.S. dollars). On a per-share basis, the company lost $0.01 compared with nil. The latest results included $25 million to restructure Bombardier’s railcar division; the year-earlier period includes $43 million in one-time charges. Bombardier delivered 74 aircraft in the latest quarter, up from 69 a year earlier. But revenue fell 8.3%, to $3.3 billion from $3.6 billion. That’s because it’s selling more business jets, which cost less than its larger regional planes. Revenue at the rail unit fell 21%, but orders more than doubled. The company is still deciding whether to develop a new, larger regional jet. That would cost about $2 billion, and help Bombardier compete with Brazil’s Embraer, its chief rival. However, demand for the new plane could be soft, as rising fuel and other costs have forced many airlines to cancel or postpone orders for new aircraft....