TORONTO, November 4, 2004 – Brascan Corporation (TSX: BNN.A, NYSE: BNN) today reported cash flow from operations of $203 million in the third quarter of 2004 ($0.72 per share) compared with $138 million ($0.46 per share) in the third quarter of 2003. Cash flow from operations for the first nine months ended September 30, 2004 totalled
$527 million, or $1.85 per fully diluted share compared with $400 million ($1.34 per share) during the corresponding period last year. Net income for the quarter totalled $192 million compared with $100 million in 2003. On a per share basis, this resulted
in net income of $0.68 per share compared with $0.32 in the same period last year.
The substantial increase in cash flow from operations was due to increased contribution from all of the company's operations. In particular, cash flows from the power operations nearly doubled, and the company realized a gain on the sale of approximately 15% of its investment in Norbord. Net income increased as a result of
the above as well as enhanced earnings from the company's resource investments.
|
|
For the three months
ended September 30 |
|
For the nine months
ended September 30 |
| US$ millions (unaudited) |
|
|
|
| (except per share amounts) |
2004 |
2003 |
|
2004 |
2003 |
|
|
|
|
| Cash flows from operations |
$ |
203 |
$ |
138 |
|
$ |
527 |
$ |
400 |
|
– per share |
$ |
0.72 |
$ |
0.46 |
|
$ |
1.85 |
$ |
1.34 |
| Net income |
$ |
192 |
$ |
100 |
|
$ |
528 |
$ |
219 |
|
– per share |
$ |
0.68 |
$ |
0.32 |
|
$ |
1.85 |
$ |
0.65 |
|
|
“We continued to execute on our stated priorities during the quarter with positive fundamentals in our operations assisting us to achieve a number of our
goals.” commented Bruce Flatt, President and CEO of Brascan.
Dividend Declaration
On November 3, 2004, the Board of Directors declared a quarterly common share dividend of $0.14 per share, to be paid on February 28, 2005 to shareholders of record on February 1, 2005. This amount will be paid in US dollars or the Canadian equivalent to shareholders.
Information on Brascan's common and preferred share dividends can be found on Brascan's web site under Stock Information.
Additional Information
The Letter to Shareholders for the third quarter ended September 30, 2004 contains further information on the company's strategy, operations and financial results. This letter is available on the company's web site.
A Supplementary Information Package with additional financial information is also posted on Brascan's web site (under Investor Centre, Financial Reports and Investor Presentations) and should be read in conjunction with this press release. The Supplementary Information Package includes important information on the financial affairs of the company.
Brascan Profile
Brascan Corporation is an asset management company. With a focus on real estate and power generation, the company has direct investments of $19 billion and a further $7 billion of assets under management. This includes 70 premier office properties and 120 power generating plants. The company is listed on the New York and Toronto stock exchanges under the symbol BNN and BNN.a, respectively. For more information, please visit our web site at www.brascancorp.com.
For more information, please visit our web site at www.brascancorp.com
or contact:
Katherine C. Vyse
Senior Vice-President
Investor Relations and Communications
Tel: 416-369-8246
e-mail: kvyse@brascancorp.com
Note 1
The press release and accompanying consolidated financial statements make reference to cash flow from operations on a total and per share basis. Management uses cash flow from operations as a key measure to evaluate performance and to determine the underlying value of its businesses. The consolidated statement of cash flow from operations provides a full reconciliation between this measure and net income. Readers are encouraged to consider both measures in assessing Brascan's results. In addition, the consolidated balance sheet above presents the company's investment in Canary Wharf Group, plc as part of its real estate operations, consistent with management's determination of business segments, whereas it is included with “Investments” in the company's interim report to shareholders.
Note: This press release and attachments contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “expect”, “anticipate”, “intend”, “estimate” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
