Tuesday, August 4, 2015

Unlike In So Many Every Other Countries, Canadian Non-Financial Companies Audited Earnings Have Seriously Deteriorated Subsequent to the 2008-9 Financial Meltdown ..... TPP Would Help Reverse This Course

From a very thorough review of US SEC filings, the Google Finance Website and other Internet sources, I found 50 Companies headquartered in Canada with Stock Market Capitalizations now of at least C$5 bil and which filed 2014 financial statements with the US SEC.

Of these 50 Canadian Companies, an amazingly high 27 of them prepared all of their audited financial statements in US$ ..... the other 23 in C$s.

Of the 27 Canadian Companies preparing their financial statements in US$s with the US SEC, 4 of them are financial companies and their earnings have been exceptionally strong since the 2008-9 worldwide financial meltdown, as you can see in the following chart:

2014 2013 2012 2011 2010 2009 2008


Most Audited Audited Audited Audited Audited Audited Audited
Recent Net Net Net Net Net Net Net
Canadian Companies City 2014 Income Income Income Income Income Income Income
Filing With US SEC in US$s HQs FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)

mil US$s mil US$s mil US$s mil US$s mil US$s mil US$s mil US$s
Financial








Brookfield Asset Management Toronto Dec          5,209          3,844          2,755          3,682          3,195              454              649
Sun Life Financial Toronto Dec          1,762          1,696          1,374           (370)          1,583              534              785
Fairfax Financial Holdings Ltd Toronto Dec          1,665           (565)              541                48              471              991          1,689
Brookfield Property Partners LP Toronto Dec          4,420          1,763          2,640          3,745          2,109           (734)










Total all 4

       13,056          6,738          7,310          7,105          7,358          1,245          3,123










Earnings Growth:








….. 2014 Over 2013

94%





….. 2014 Over 2008

318%





….. 2 Years 2013-14 Over 2008-9
353%






On the other hand, the 23 Canadian Non-Financial Companies preparing their financial statements in US$s had just horrendous audited earnings results since the 2008-9 worldwide financial meltdown, summarized as follows:
  • 2014 Total Audited Earnings were US$ 6.885 bil, down a massive 70%, or down US$ 15.940 bil, from 2008 Total Audited Earnings of US$ 22.825 bil.
  • Two Year 2013-14 Total Audited Losses were US$ 6.714 bil, an Earnings Deterioration of an even more massive US$ 31.204 bil from the Total Audited Earnings in 2008-9 of US$ 24.490 bil.
  • And Three Year 2012-14 Total Audited Earnings were a paltry US$ 0.146 bil, an Earnings Deterioration of an even more massive US$ 42.621 bil from the Total Audited Earnings in 2008-10 of US$ 42.767 bil.
Below here are the reported US GAAP,  Canadian GAAP or IFRS GAAP Audited Net Income (Losses) of each of  these 23 Non-Financial Companies reporting in US$s for all of their fiscal years reported from 2008 through 2014, presented by Market Cap:

2014 2013 2012 2011 2010 2009 2008


Most Audited Audited Audited Audited Audited Audited Audited


Recent Net Net Net Net Net Net Net
Canadian Non-Financial Cos City 2014 Income Income Income Income Income Income Income
Filing With US SEC in US$s HQs FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)



mil US$s mil US$s mil US$s mil US$s mil US$s mil US$s mil US$s










Valeant Pharmaceuticals Intl Laval Dec                         912                      (864)                        (116)                         160                      (208)                         176                        200
Thomson Reuters New York Dec                     1,959                         175                    2,040                   (1,396)                        844                        844                     1,320
PotashCorp Saskatoon Dec                     1,536                     1,785                    2,079                     3,081                     1,775                         981                    3,466
Magna International Aurora Dec                     1,880                     1,545                     1,426                      1,015                     1,003                      (453)                           71
Agrium Calgary Dec                        798                     1,080                     1,498                     1,508                         731                        366                     1,322
Cenovus Energy Calgary Dec                        744                        662                        995                     1,478                      1,081                         818                    2,526
Goldcorp Vancouver Dec                   (2,168)                  (2,657)                     1,749                      1,881                      1,381                        244                      1,481
Constellation Software Toronto Dec                         103                          93                          93



lululemon athletica Vancouver Jan 15                        239                        280                         271                         185                         122                          58                           41
Restaurant Brands Intl Inc Oakville Dec                      (277)                        234                          118                          88                         187

Barrick Gold Corp Toronto Dec                  (2,959)                 (10,097)                      (677)                    4,537                     3,176                  (4,365)                         901
Gildan Activewear Montreal Sep                        360                        320                         148                        234                         198                          95                         146
Talisman Energy Calgary Dec                        (911)                    (1,175)                         132                        776                        945                      (708)                     3,122
Brookfield Infrastructure Partners LP Toronto Dec                        237                        293                          112                         129                        403                        (59)                      (253)
Turquoise Hill Resources Ltd Vancouver Dec                           (7)                        (77)                       (581)                      (606)                      (285)                      (302)                      (223)
Encana Calgary Dec                    3,426                        236                  (2,794)                             5                    2,343                     1,830                    6,499
Franco Nevada Corp Toronto Dec                         107                           12                         103                           (7)                          63

Open Text Waterloo Jun                         218                         149                         125                         123                          89                          57                          54
Silver Wheaton Corp Vancouver Dec                        200                        375                        586                        550                        290                          118                           17
Agnico Eagle Mines Ltd Toronto Dec                          83                      (687)                          311                      (569)                        332                          87                          73
Brookfield Renewable Energy Partners LP Toronto Dec                        203                         215                        (95)                       (451)                        294                      (580)
BlackBerry Ltd Waterloo Feb 15                      (304)                  (5,873)                      (628)                       1,171                      3,411                    2,457                     1,893
Methanex Corporation Vancouver Dec                        506                        377                        (35)                        228                         102                              1                         169










Total all 23

                   6,885                 (13,599)                    6,860                    14,120                   18,277                     1,665                  22,825










Earnings Deterioration:








….. 2014 vs 2008

                (15,940)





….. 2 Year 2013-14 vs 2008-9

                (31,204)





….. 3 Year 2012-14 vs 2008-10

                (42,621)






Of the 23 Canadian Companies preparing their financial statements in C$s with the US SEC, 6 of them are very large financial companies and their earnings have been just so consistently fine since the 2008-9 worldwide financial meltdown, as you can see in the below chart:

2014 2013 2012 2011 2010 2009 2008


Most Audited Audited Audited Audited Audited Audited Audited

Recent Net Net Net Net Net Net Net
Canadian Companies City 2014 Income Income Income Income Income Income Income
Filing With US SEC in C$s HQs FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)

mil C$s mil C$s mil C$s mil C$s mil C$s mil C$s mil C$s
Financial Companies








Royal Bank of Canada Toronto Oct          9,004          8,342          7,558          6,650          5,732          5,681          4,555
Toronto Domunion Bank Toronto Oct          7,883          6,640          6,460          5,889          4,644          3,120          3,833
Bank of Nova Scotia Toronto Oct          7,298          6,610          6,390          5,330          4,339          3,547          3,140
Bank of Montreal Toronto Oct          4,333          4,195          4,156          3,266          2,810          1,787          1,978
Manulife Financial Group Toronto Dec          3,593          3,166          1,692              245           (312)          1,420              497
Canadian Imperial Bank of Commerce Toronto Oct          3,215          3,350          3,303          3,089          2,479          1,195        (2,042)










Total all 6

       35,326        32,303        29,559        24,469        19,692        16,750        11,961










Earnings Growth:








….. 2014 Over 2008

195%





….. 2 Years 2013-14 Over 2008-9
136%





….. 3 Years 2012-14 Over 2008-10
101%





….. 2014 Over 2013

9%







On the other hand, the 17 Canadian Non-Financial Companies preparing their financial statements in CS$s had very modest audited earnings growth since the 2008-9 worldwide financial meltdown, as you can see below:

2014 2013 2012 2011 2010 2009 2008


Most Audited Audited Audited Audited Audited Audited Audited

Recent Net Net Net Net Net Net Net
Canadian Non-Financial Cos City 2014 Income Income Income Income Income Income Income
Filing With US SEC in C$s HQs FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)

mil C$s mil C$s mil C$s mil C$s mil C$s mil C$s mil C$s









Canadian National Railway Co Montreal Dec                     3,167                     2,612                    2,680                    2,467                     2,104                     1,854                     1,895
Suncor Energy Inc Calgary Dec                    2,699                      3,911                    2,740                    4,304                    3,829                      1,146                     2,137
Enbridge Inc Calgary Dec                     1,562                        490                      1,015                     1,060                        980                     1,599                     1,328
BCE Inc Verdun Dec                     2,718                    2,388                    3,053                    2,574                     2,190                     1,749                     1,033
Imperial Oil Limited Calgary Dec                    3,785                    2,828                    3,766                     3,371                     2,210                     1,579                    3,878
TransCanada Corporation Calgary Dec                     1,993                       1,911                     1,472                       1,711                     1,387                     1,476                     1,470
Canadian Natural Resources Ltd Calgary Dec                    3,929                    2,270                     1,892                    2,643                     1,673                     1,580                    4,985
TELUS Corp Burnaby Dec                     1,425                     1,294                      1,318                      1,215                     1,038                     1,002                      1,128
Rogers Communications Toronto Dec                      1,341                     1,669                     1,732                     1,590                     1,528                     1,478                     1,002
Husky Energy Inc Calgary Dec                     1,258                     1,829                    2,022                    2,224                      1,173                      1,416                     3,751
CGI Group Inc Montreal Sep                        859                        456                         132                        438                        362                         316                        299
Shaw Communications Inc Calgary Aug                        887                        784                         761                        559                        533                        536                        673
Pembina Pipeline Corp Calgary Dec                        383                         351                        225                         166


Crescent Point Energy Corp Calgary Dec                        509                         145                          191                         201


Cameco Corp Saskatoon Dec                          56                        232                        450                        439                        506                         717                        366
Arc Resources Ltd Calgary Dec                         381                         241                         139                        287                         261                        225                        540
Teck Resources Ltd Vancouver Dec                        382                      1,010                        870                    2,768                     1,975                      1,819                        750










Total all 17
                 27,334                   24,421                  24,458                   28,017                   21,749                   18,492                  25,235










2014 Earnings Growth Over 2008

8%





2 Year 2013-14 Earnings Growth Over 2008-9
18%





3 Year 2012-14 Earnings Growth Over 2008-10
16%












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