BCE's severance costs drag down Q4 profit; revenue in line with estimates

MONTREAL -- The parent of Bell Canada, CTV and related businesses has recorded $120 million of severance-related expenses in the fourth quarter.

See Full Article

BCE Inc. (TSX:BCE) revealed the cost of the workforce adjustments with its latest financial report, which showed it had $496 million of net income for the fourth quarter -- down 8.5 per cent from $542 million a year before.

The Montreal-based company attributed the lower profit to higher severance, acquisition and other costs during the three months ended Dec. 31, totalling $152 million including the severance expenses.

BCE's adjusted net earnings, excluding those expenses, increased 0.8 per cent to $615 million in the quarter ended Dec. 31, up $5 million from a year earlier.

The adjusted net earnings -- which are one of BCE's key measures of financial performance -- met analyst estimates at 72 cents per share. But the net income fell short at 58 cents per commen share, down from 64 cents a year earlier.

BCE's revenue was $5.6 billion, in line with estimates compiled by Thomson Reuters and up 1.4 per cent from the fourth quarter of 2014.

BCE also announced it will be raising its dividend to shareholders by five per cent, starting with the next payment on April 15. The annualized dividend will rise to $2.73 per share, up from $2.60.

The company is projecting its adjusted earnings per share in 2016 will be in a range from $3.45 to $3.55, up from with $3.36 in 2015. Revenue is expected to grow by one to three per cent this year, in line with the 2015 growth rate.



Advertisements

Latest Economic News

  • Wealthsimple targeting older U.S. demographic, CEO says

    Economic CTV News
    TORONTO - Three months after expanding its millennial-targeted robo-adviser service to the United States, Wealthsimple is now seeking to capture an older demographic south of the border due to the burden of student loan debt there. Source
  • Ad boycott of YouTube could spell trouble for Google

    Economic CTV News
    SAN FRANCISCO -- YouTube's inability to keep big-brand ads off unsavoury videos is threatening to transform a rising star in Google's digital family into a problem child. It's not yet clear whether a recent ad boycott of YouTube will be short-lived or the start of a long-term shift away from the video service - one that could undercut Google's growth and that of its corporate parent, Alphabet Inc. Source
  • Uber exec running self-driving car division stepping aside due to lawsuit

    Economic CTV News
    SAN FRANCISCO -- The executive running Uber's self-driving car division is stepping aside while the company defends itself against charges that he provided the project with technology stolen from a Google spinoff. Anthony Levandowski, an autonomous vehicle expert who defected from Google last year, notified Uber's staff of his decision in a Thursday email. Source
  • Volkswagen ordered to pay $2.1B in class-action suit over emissions scandal

    Economic CBC News
    Members of a Canadian class-action lawsuit against Volkswagen can submit claims for reimbursement starting on Friday after an Ontario court approved a $2.1-billion settlement plan. The 105,000 people who purchased or leased certain Volkswagen or Audi vehicles with two-litre diesel engines that were caught up in an emissions cheating scandal will each receive a payment between $5,100 and $8,000, wrote Superior Court Justice Edward Belobaba in his judgment Wednesday. Source
  • Bombardier rejects Boeing claim CSeries was dumped into the U.S. at below cost

    Economic CTV News
    MONTREAL -- Bombardier and the federal government have rejected Boeing's claim in a complaint filed with the U.S. government that its Canadian rival has dumped its new CSeries commercial jet into the United States at below cost. Source
  • Boeing seeks U.S. anti-dumping probe against Bombardier CSeries jet

    Economic CBC News
    Boeing Co. said on Thursday it had asked the U.S. Commerce Department for an investigation into alleged subsidies and unfair pricing for Canadian planemaker Bombardier's CSeries airplane. The request for anti-dumping measures was also addressed to the U.S. Source
  • Shaw Communications reports outage of internet, TV and phone services

    Economic CBC News
    Shaw Communications Inc. says customers were hit by an outage to its internet, television and home phone services on Thursday. Company support services said in a 1:20 p.m. PT posting on a website that technicians were working on the problem. Source
  • Shaw internet, TV and phone service outage fixed

    Economic CBC News
    Shaw Communications Inc. says customers were hit by an outage to its internet, television and home phone services on Thursday. Company support services said in a 1:20 p.m. PT posting on a website that technicians were working on the problem. Source
  • Canam stock nearly doubles on going-private offer for Quebec-based company

    Economic CTV News
    MONTREAL -- Canam Group is preparing to end its 33-year run as a public company after partnering with a U.S. company and Quebec investors to take the structural steel specialist private. After a few years of reflection, the leadership of the company founded in 1960 concluded that the constraints of being public not longer fit with its vision. Source
  • United Airlines reaches undisclosed settlement with passenger dragged from plane

    Economic CBC News
    A Kentucky doctor who was dragged off a United Airlines flight after he refused to give up his seat to crew members has reached a settlement with the airline for an undisclosed amount. David Dao's legal team announced the settlement Thursday in a brief statement. Source