Russ McCutcheon

TORONTO – Corporate Canada will be in focus this week as the earnings season starts to move into high gear amid a light calendar for economic news.

Some of the countrys biggest resource companies will be unveiling results during the week, including forest products firm Canfor (TSX:CFP) on Tuesday, while Husky Energy (TSX:HSE), Precision Drilling (TSX:PD) and Teck Resources (TSX:TCK.B) hand in earnings Thursday.

Analysts say investors are likely in for a mixed earnings picture, depending on what commodities these companies produce.

We are going to get a bit of a mixed bag in terms of the numbers, said Pat McHugh, senior portfolio manager at Manulife Asset Management.

Energy is certainly up over the last three months but natural gas is off 40 per cent. Copper is up. Nickel is up. Zinc is up. Gold is mixed.

Strong stock gains by companies reporting could also be elusive since the resource-heavy Toronto stock market has been climbing fairly steadily since the recent lows at the end of the third quarter of 2011. The TSX had a particularly strong January, up more than four per cent.

In January for example, the materials were up 10 per cent, integrated oils up 12 per cent, paper and forest up 14 per cent, a huge, huge move, said McHugh.

So if there is something people don’t like, then they may be quick to take some profits.

Investors will particularly focus on the outlook offered by resource companies. Strength in the Chinese economy has been important for the sector since the rapidly expanding economy has had a huge appetite for oil and minerals.

China has had to slow its economy in order to rein in uncomfortably high inflation, particularly for housing and food, but recent data is raising confidence that the government has managed to slow the economy gradually.

They have been raising interest rates and tightening monetary conditions, said Gavin Graham, president Graham Investment Strategy.

Now they can start loosening monetary policy. And they have shown they are willing to do so.

Investors will also take in the first earnings reports from the big insurance companies as Great-West Lifeco (TSX:GWO) reports on Thursday.

Like other insurers, Great-West has had a tough time because of a combination of very low interest rates and weak stock market performance, which diminishes their returns and increases the value of liabilities that stretch far into the future.

But Graham thinks Great-West should do better than the competition as they, along with Industrial Alliance, have a reputation as the most conservative of the big four Canadian insurers.

He also thinks there is the potential for Great-West to do better this year if the stock market continues to improve and bond yields rise.

Unless you believe that we’re going to have permanent two per cent 10-year government bond yields for the next decade, and that the stock market will be no higher than it is now, in 10 years, then quite frankly these things are pretty cheap, he said.

And if you want the conservative way to play it, Great-West would be the one.

Meanwhile, stocks finished last week higher thanks in part to a stronger than expected American jobs report for January. A total of 243,000 jobs were created in the United States, far better than the 150,000 that economists expected.

A recovery in US employment levels is considered necessary to spur economic growth, which would be good for Americas trading partners, including Canada.

The TSX ended the week up 110.78 points or 0.88 per cent on top of a gain of more than four per cent for the month of January.

Despite the strong data, McHugh wasn’t so sure this would translate into the start of a fresh rally.

We’re cautioning people that the market from the lows of the third quarter is up about 20 per cent, he said.

So it is possible that we might see some pullback or at least some sideways movement in the market and that’s OK because we’ve had a nice move since the last quarter of 2011.

BY MITSURU OBE

TOKYOThe president of Tokyo Electric Power Co. on Friday indicated that the utility will go ahead with an electricity rate increase for corporate customers in April, emphasizing that the unpopular move is necessary to keep the company afloat and ensure stable power supply for the nations capital.

I believe we have obtained the understanding of the government-backed nuclear compensation body, Tepco president Toshio Nishizawa said after a meeting with the bodys executives Friday afternoon.

The …

Jones Lang LaSalle appointed financial services expert Mark Melas to its banking industry group in New York City. He assumed the role of account director after serving 16 years as a corporate real estate executive with HSBC. Melas will work with financial institutions looking to drive business growth, mitigate risk and reduce costs with their national real estate portfolios.

“We work with many of the largest banks in the world to help them leverage corporate real estate and workplace solutions to drive value for their shareholders and customers,” said Stuart Hicks, president of JLL’s banking industry group. “Mark joins our team at an especially critical time in the evolution of the financial services industry, and we know that our clients will benefit from his ability to understand the real estate nuances of this industry in particular. He’s got agility in that he can tackle global issues that banks face right now, like reducing real estate footprints on a large scale, so that they can focus more time on their customers.

Melas was in charge of HSBC’s corporate real estate across North America and also was responsible for its assets in South America. Prior to his work at the global bank, he served with NYNEX (now Verizon) in its corporate real estate division for 17 years. His practice area included business unit interface and alignment, strategic planning, portfolio optimization and master plan development and oversight of office and retail projects.

Sasfin Hires JSE’s Greenhill to Head Corporate Finance Team
February 06, 2012, 1:53 AM EST

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By Stephen Gunnion

(Updates with JSE Ltd. CEO comment in third paragraph.)

Feb. 5 (Bloomberg) — Sasfin Holdings Ltd. appointed Noah Greenhill, a senior general manager at the Johannesburg Stock Exchange, to head its corporate finance team, the Johannesburg- based financial services group said.

Greenhill, who helped to set up the Johannesburg bourse’s Alternative Exchange for small companies, will join Sasfin on Feb. 13, replacing Panico Theocharides, who resigned, the lender said in a statement today.

Greenhill’s responsibilities will be incorporated into a new role being created as part of a management restructuring, Nicky Newton-King, Chief Executive Officer of JSE Ltd., operator of the bourse, said in an interview today.

–Editors: Linda Shen, Susan Lerner

To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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READER DISCUSSION

Facebookfiled its S1 yesterday afternoonafter the markets closed, ending years of speculation about when the company would do so. Plenty of fodder remains for therumor mill, of course, as this was Facebooks first S1, and many of the details have yet to be revealed.

While Facebook hasnt chosen an exchange or set a range for its IPO stock price, it has revealed a wealth of information about its approach to corporate governance. In many ways, Facebook is following in the footsteps ofGroupon,Zyngaand the other internet companiesthat have gone public over the past year a sign corporate governance is not a priority for this sector. The use of Class B shares with disproportionate voting rights and founder control of the board, for example, will make it difficult forshareholders voicesto be heard.

In the end,Facebookwill be public, but it will remainMark Zuckerbergs company for as long as he sees fit. Lets take a look at the chiefcorporate governanceissues in Facebooks S1 filing:

1. One-man majority rule:Zuckerberg holds 28.2 percent of the voting power ahead of the IPO, and he controls another 30.6 percent. Thats the majority he needs, although there are some restrictions, including the ability to vote for an issuance of stock that is more than 20 percent of what is outstanding already. Some of the voting rights end with the sale of the stock by its owners, the death of Zuckerberg or his giving up active management of Facebook.

2. The back-up plan:even if Zuckerberg loses or surrenders some control of his majority, Facebook continues to be heavily influenced by all owners of Class B shares. As long as these shares represent 9.1 percent of all shares outstanding, this group will control a majority of the votes. According to the S1: lsquo;This concentrated control will limit your ability to influence corporate matters for the foreseeable future.

3. Board dependence:Facebook is taking the lsquo;controlled company exemption to corporate governance rules. As a controlled company, it wont have to maintain a majority of independent directors on its board, and it wont need to have a compensation committee or an independent nominating function. Zuckerbergs designees have voting control, and if director Peter Thiel gives up his board seat, the board itself will decide who should fill it, increasing Zuckerbergs control further.

4. Special situations:Facebook has taken specific measures to protect itself fromacquisition. A transaction that would lead to a change in control of the company requires a majority of Class B votes (with these shareholders voting as a separate class). If Class B shareholders lose their overall majority, some lsquo;certain amendments to our restated certificate of incorporation or bylaws will call for a two-thirds majority of Class A and Class B shares. Simply put, the Class B shareholders mostly founders and early employees will retain majority control in certain situations with only a third of the votes. Also, when Class B shareholders lose their majority voting rights, the board will fill its own vacancies.

5. Meeting lock-down:what else happens when Class B shareholders lose their majority? Well, shareholders will only be able to lsquo;take action at a meeting of shareholders, not by written consent. And only the CEO or a majority of the board can call a special meeting of shareholders so any change would have to come with Zuckerbergs consent.

While the corporate governance limitations at Facebook arenot as severe as those at the Carlyle Group, and the voting structure isnt as favorable to Zuckerbergas Zyngas, the net effect is straightforward: shareholders are surrendering themselves to Zuckerbergs genius.

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STRATFORD, Conn., Feb. 2, 2012 /PRNewswire via COMTEX/ –
Sikorsky Innovations, the technology development organization of Sikorsky Aircraft Corporation, today announced its founding corporate sponsorship in the new Stamford Innovation Center. Sikorsky is a subsidiary of United Technologies Corp.

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Sikorsky Innovations plans to use the center for new entrepreneurial ventures that are developing highly differentiated technology aligned with Sikorsky Aircraft initiatives.

“We are pleased to support the mission of the Stamford Innovation Center and its Foundation through this significant corporate sponsorship,” said Sikorsky Innovations Vice President Chris Van Buiten. “Sikorsky Innovations is committed to identifying and maturing cutting-edge technologies applicable to current and future products of Sikorsky Aircraft Corp. We firmly believe that the mission of the Stamford Innovation Center aligns closely with our goals and look forward to working with its team.”

Located at the iconic Old Town Hall in the heart of Stamford, the Stamford Innovation Center is a new hub for entrepreneurship and innovation whose mission is to “Accelerate the Entrepreneur’s Voyage.”

The 16,000-square-foot iCenter will offer dedicated desks, shared “co-working” space and all of the typical business services available in a state-of-the-art office complex. “Most importantly, we will surround our entrepreneurs with a community… a team of individuals and organizations dedicated to their success,” said Patty Meagher, one of the Founders of the Center. “It is an ideal environment in which to work, learn, accelerate, and create the future.”

“The collaboration between Sikorsky and Stamford Innovation highlights the ongoing and exciting entrepreneurial spirit that exists at institutions across our state,” Governor Dannel P. Malloy said. “Connecticut has always had a reputation as the home for innovation, whether we’re talking about companies, technology or our workforce. The partnership announced today will help our state build on that history and continue our efforts to find new ways to compete in a 21st Century economy.”

Along with the sponsorship announcement, Sikorsky Innovations announced plans for an Entrepreneurial Challenge competition to assist in identifying and rewarding those relevant ventures.

The Entrepreneurial Challenge will feature five technical questions posted to the Sikorsky.com web site for two months. Entrepreneurial teams may submit applications to one or more of the questions. Applications will be judged on technical feasibility, value proposition, and team expertise.

Finalists will be chosen from the applicant pool, and will have the opportunity to present their technology to Sikorsky experts. Winning teams will be granted a period of rent-free access to the Stamford Innovation Center, including a portion of the Sikorsky-designated incubation space, shared services within the Center, and participation in the Center’s education and mentorship programs. Sikorsky technical and business mentors will assist the teams in maturing and growing their businesses.

“Competition has been one of the driving forces of innovation in aviation since before Charles Lindbergh claimed the Orteig Prize for his nonstop solo flight across the Atlantic. As a leader in the vertical flight industry, Sikorsky Innovations is continually looking to expand its network of partners, working closely with them to demonstrate differentiating technologies that are relevant to our customers. The Entrepreneurial Challenge represents another facet of that strategy, targeted at those innovators just beginning their entrepreneurial journey,” Van Buiten said. “We look forward to reaching out to the community with our Entrepreneurial Challenge and finding companies with an emerging aerospace technology, or enlightening those companies that didn’t know they had an aerospace application within their technology.”

As part of the sponsorship announcement, Sikorsky Innovations also officially launched the first of the Entrepreneurial Challenges, with a submission deadline of 5 p.m. EDT on March 30. For details or to take the challenge, visit:

http://www.sikorsky.com/Innovation

Sikorsky Aircraft Corp., based in Stratford, Conn., is a world leader in helicopter design, manufacture, and service. United Technologies Corp., based in Hartford, Conn., provides a broad range of high technology products and support services to the aerospace and building systems industries.

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www.stamfordinnovationcenter.com

SOURCE Sikorsky Innovations

Copyright (C) 2012 PR Newswire. All rights reserved

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United Technologies Corp.

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Feb. 13, 2012 1:43p

As a percentage of ever-growing profits, corporations are paying less in taxes than they have in decades.

Thanks in part to federal tax breaks, corporations paid out just 12.1 percent of their 2011 profits in taxes, according to the Congressional Budget Office. Thats well below the countrys top marginal corporate tax rate of 35 percent — and as The Wall Street Journal notes, its the lowest percentage corporations have paid since 1972. During the two previous decades, a period that included the economic prosperity of the 1990s and the housing boom of the George W. Bush administration, corporations were paying an average percentage almost twice as high.

The CBOs numbers undercut a popular conservative claim — that the United States places a higher tax burden on its corporations than almost any other first-world nation — and arrive at a time when national politicians are engaged in a fierce rhetorical battle over how much wealthy institutions and individuals should pay to the government.

Corporations reported a combined $1.97 trillion in profits in the third quarter of 2011. As recently as June, they were also believed to be sitting on more than $2 trillion in cash hoardings. Most of that money has not been touched by taxation, even though the federal government has experienced budget shortfalls of more than $1 trillion for each of the past four years, and is scrambling to cut back on staff and services as a result. Meanwhile, the money isnt going to employees either, as real wages for most Americans declined in 2011 in spite of strong corporate balance sheets.

There are any number of methods available to a firm looking to avoid paying the full tax rate. Companies can take advantage of industry subsidies, restructure their operations so as to sidestep certain taxes, and offer workers payment in the form of stock options, which then allows the company to claim a greater deduction. Many companies also move assets overseas where they cant be taxed. In 2008, 2009 and 2010, thirty major US corporations, including General Electric, Boeing, Verizon and Wells Fargo, used so many tax-avoidance techniques that they ended up paying no income taxes at all, according to a report last year from Citizens for Tax Justice.

President Obama has denounced low corporate taxes in specific instances while at the same time downplaying the importance of raising the corporate tax rate itself. The president is said to be planning a major revision of the corporate tax code sometime in February.

Meanwhile, much of the country continues to struggle financially, with nearly 13 million people looking for work, 49 million people officially in poverty, and almost half of households lacking the kind of savings they would need in an emergency.

Kraft Foods (NYSE:KFT) said late Tuesday it will cut 1,600 positions in North America in 2012 as it prepares to split its business into two parts.

The job cuts represent about 1.26 percent of the companys total workforce and will primarily be in sales, corporate and other business units in the US and Canada.

Kraft said it wont reduce its manufacturing, but two of its four US management centres for its grocery business will be eliminated.

Kraft Foods chairman and CEO, Irene Rosenfeld, said: When we announced our decision to create two world-class companies last August, we said both would be leaner, more competitive organizations.

For the past year, the North American team has been working to streamline operations to deliver sustainable top-tier performance and continue to invest in our iconic brands. Were confident that this transformational work will improve effectiveness and fuel the future growth of both companies.

Last year, Kraft announced it would split its snack and grocery business into two companies to improve effectiveness.

Kraft whose products include Oreo, Philadelphia cream cheese and Oscar Mayer meats plans to spin off its North American grocery business into a separate company from its snacks and candy division which includes UK chocolate maker Cadbury.

Kraft also said fiscal 2011 net revenue would be up by about 10 percent and expects to report 2011 operating earnings per share of at least $2.28.

Previously, Kraft had forecast operating earnings per share of at least $2.27, excluding any potential currency impact.

Analysts, on average, had expected Kraft to earn $2.27 per share this year, according to Thomson Reuters.

The company plans to release its financial results on February 21.

This article is part of a series of excerpts from the fifth annual State of Green Business Report, looking at trends in corporate sustainability. Download the free report from GreenBiz.com, and see all of our trends here.

Also, be sure to register for a free webcast taking place on Tuesday, February 7: The State of Green Busines 2012 – The Good News and Bad is hosted by Joel Makower and dives in to all the findings of the report. Click here to register.

If you think of the corporate sustainability movement as a ship — a huge, hulking, slow-moving and still-polluting ship — new research shows that the ship is still moving forward, but is taking on water and struggling to pick up steam.

The fifth annual State of Green Business report, published today by Joel Makower and the editors of GreenBiz.com, finds that while progress is still happening in some areas, for the first time corporate sustainability has slowed, stopped and in some places even reversed.

Whats to blame? Simply put, sustainable business is suffering a recessionary hangover, writes Joel Makower, Executive Editor of GreenBiz.com and principal author of the report.

People expected green investing and corporate sustainability efforts to grind to a halt with the global recession in 2011. While some key indicators such as cleantech investments and energy efficiency are flattening or declining for the first time, were seeing that companies are more committed than ever to making sustainability a part of their everyday business, Makower explained. Theyre integrating green practices into all levels of their company, and looking to sustainability to drive innovation, reduce operating costs and in many instances unlock new revenue opportunities.

The report tracks year-over-year data for 20 different areas of corporate sustainability, ranging from overall carbon emissions to corporate reporting to LEED green building certifications to the use of toxic chemicals in manufacturing.

Theres good and bad news in this years report; the good news is that companies continue to dedicate time, money and staff to setting and meeting ambitious environmental goals — the kind of news that we cover every day on GreenBiz.com.

The bad news is that, despite this, our research shows a slowing of momentum — or even backwards motion, in some cases — on some of the indicators. Among the downgraded topics include investments in clean technology innovations, overall energy intensity, certifications of LEED buildings, and paper use and recycling.

In addition to a close look at each of the indicators — swimming, treading and sinking alike — the report features the 10 trends that will shape corporate sustainability in 2012. Among them:

• Sustainable Consumption Gets Buy-in — mainstream companies are promoting smarter consumption, while mesh companies offer services instead of products.
• Green Gamification Scores Points — companies are using the power of games to reward customers and employees and highlight green practices.
• Cleantech Survives a Crisis of Confidence — cleantech investments are predicted to increase despite some big name failures in 2011.
• Energy Efficiency Gains Star Power — high-profile energy efficiency projects demonstrate potentially huge savings.
• Big Data Creates Big Opportunities — tsunami of information associated with the internet of things can yield insights and improve technology efficiency.
• Sustainable Cities Take Center Stage — cities are setting sustainability goals and investing in green infrastructure and technology.
• Non-News is Good News — sustainability has become less newsworthy as it is integrated into business as usual.

And for the first time this year, the State of Green Business Report features contributions from global experts on sustainable business. Among the contributors to the report include Amory Lovins, discussing Energys Two Revolutions; Jigar Shah on Carbons Rising Costs, and Sinks; Jonathan Koomey on ICT and the Future of Low-Energy Computing; and Paul Simpson, CEO of the Carbon Disclosure Project, writing about Whats Next for Carbon Reporting.

The 2012 report is the centerpiece of GreenBizs upcoming Green Business Forums. The one-day events will take place in Minneapolis on January 19, New York on January 24, and San Francisco on Jan 30. For more information on the Forums, or to download a free copy of State of Green Business 2012, visit GreenBiz.com.

Jan 18 (Reuters) -
JAPAN CORPORATE HOUSING SERVICE CO LTD
CONSOLIDATED EARNINGS ESTIMATES
(in billions of yen unless specified)
Full year to Full year to
June 30,2012 June 30,2012
LATEST PREVIOUS
FORECAST FORECAST
Sales 6.13 6.26 Operating
475 mln 490 mln
Recurring 473 mln 491 mln
Net 214 mln 236 mln
NOTE – Japan Corporate Housing Service Co Ltd is engaged in
company-owned housing administration services.. For
latest earnings estimates made by Toyo Keizai, please double
click on 8945.TK1.