The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following article by Reporter Tara Perkins published in the April
30, 2005 edition
By Tara
Perkins
The Canadian Press
TORONTO (Apr 30, 2005)
Brascan Corp. profits rose by 14 per
cent in the first quarter as the giant asset management conglomerate enjoyed a
healthy performance by its power properties.
The company with holdings focused
primarily in real estate and power generation, is looking to exit volatile
sectors, chief executive Bruce Flatt told shareholders at Brascan's annual
general meeting yesterday.
But Flatt said the current bid by
Brascan's restructuring fund to refinance Stelco Inc. certainly doesn't fit the
strategy.
When it comes to low-volatility
companies, "Stelco would not be it," the CEO said in an interview
after the meeting.
"And that's why it's a little bit
different ... but small amounts of capital allow us to be very supportive of
them."
Cyrus Madon, managing partner of
Brascan's Tricap Restructuring Fund, said it has operational expertise that can
help turn Stelco around and is capable of recapitalizing the Hamilton
steelmaker's entire balance sheet.
"We think we are actually uniquely
positioned ... to assist Stelco in that we have the full support of the union
and without the union no restructuring plan will go ahead."
Toronto-based Brascan earned $165
million US in the three months ending March 31, compared to $145 million US in
the comparable period a year ago.
That profit of 59 cents US per diluted
share, up from 53 cents, was on total revenues of $992 million US, up from $768
million.
The company manages $27 billion in
assets -- a figure it expects to grow to $40 billion shortly.
When the merger between Noranda Inc.
and Falconbridge is complete, Brascan will have a 19 per cent interest in the
company, which it has no intention of cashing in in the near future, Flatt
said.
He told shareholders he's comfortable
with that $1-billion-plus US investment, because it looks like commodity prices
will hold strong.
After the meeting, Flatt told reporters
that China Minmetals -- a major Chinese metal trading and mining company which
was formerly negotiating with Brascan for its stake in Noranda -- has been
talking to Noranda about "a number of things that could be very positive
to the future" of that company.
"They're working on a number of
things," he said, ranging from a capital investment to developing new
mines.
"There are no transactions
negotiated, but having a relationship between a major importer of commodities
into China ... and a company who produces basic materials ... that relationship
could be very positive, and something possibly that no other western world
company has," Flatt said.
Brascan said its core portfolio of 70
office properties also performed well during the first quarter. Operating
income from property grew to $228 million US from $214 million in the
comparable period during 2004.
Shares in the firm rose $1.23 yesterday
to close at $45.48 on The Toronto Stock Exchange.