Barrick, CanWest, Kingsway, Tim Hortons: Canada Equity Preview

By John Kipphoff

Feb. 20 (Bloomberg) -- Shares of the following companies may have unusual moves in Canadian trading today. Stock symbols are in parentheses and prices are from the previous close.

The Standard & Poor’s/TSX Composite Index added 0.1 percent to 8,185.35 in Toronto. The main benchmark for Canadian stocks has fallen 5.7 percent in three days, poised for a second consecutive weekly loss. Canadian equity markets were closed on Feb. 16 for the Family Day holiday.

Barrick Gold Corp. (ABX CN): The world’s largest gold producer posted a fourth-quarter loss of $468 million, compared with profit of $537 million a year earlier, as copper prices dropped and the company wrote down the value of some assets.

Excluding certain items, profit was 32 cents a share, exceeding the 31-cent average estimate of analysts in a Bloomberg survey. The shares fell 5.2 percent to C$45.90.

CanWest Global Communications Corp. (CGS CN): Canada’s biggest media company is trying to secure financing by the end of the month to avoid a bankruptcy filing, the Globe and Mail reported, citing unidentified people. CanWest spokesman John Douglas said the company is following a structured process and is trying to reach an agreement with senior lenders, the newspaper reported. Douglas didn’t immediately return a call this morning placed by Bloomberg News. CanWest rose 6.3 percent to 43 Canadian cents.

Eldorado Gold Corp. (ELD CN): The miner of gold in Mexico and Brazil was downgraded to “neutral” from “buy” by UBS AG analyst Dan Rollins in Toronto on valuations. The shares, which have gained 11 percent this year, fell 2.4 percent to C$10.74.

Fairfax Financial Holdings Ltd. (FFH CN): The owner of U.S. and Canadian insurers said fourth-quarter profit fell 38 percent to $346.8 million as it recorded fewer gains from betting against financial companies. Excluding one-time items, Fairfax earned $42.15 a share, more than triple the average analyst estimate, according to Bloomberg data. Fairfax fell 1.8 percent to C$371.51.

Kingsway Financial Services Inc. (KFS CN): The insurer of freight trucks and high-risk drivers reported a fourth-quarter loss that more than tripled to $360.4 million and cut the dividend 73 percent to 2 Canadian cents a share, on lower premiums, equity investment losses and writedowns, according to a statement today distributed by Canada NewsWire. The shares rose 8.6 percent to C$3.15.

Sears Canada Inc. (SCC CN): The country’s second-biggest department-store chain laid off 300 employees, half of them at its head office in Toronto, because of “difficult” business conditions, the Toronto Star said, citing a company spokesman. Sears Canada fell 3 percent to C$19.25.

Tim Hortons Inc. (THI CN): Canada’s largest coffee-and- doughnut chain reported fourth-quarter profit of 46 cents a share, excluding one-time items, 3.8 percent more than analysts estimated, according to Bloomberg data. The company raised the dividend 11 percent to 10 Canadian cents. The shares added 1.2 percent to C$28.45.

West Fraser Timber Co. (WFT CN): Canada’s biggest lumber producer reported a fourth-quarter loss, excluding one-time items, of 28 cents a share, less than half the 70 cents analysts estimated, according to Bloomberg data.

Canfor Corp. (CFP CN), the country’s second-largest lumber company, posted a fourth-quarter loss of 30 cents a share, 11 percent wider than analysts projected, according to Bloomberg data. Canfor shares fell 1.2 percent to C$5.98. West Fraser dropped 2.7 percent to C$26.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.