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Technology

Recession boosts CGI Group earnings

MONTREAL - The economic crisis continues to be a boon to CGI Group Inc. as more companies outsource their technology operations and beef up the Montreal-based firm's bottom line. CGI reported net earnings of $77.5 million in the second quarter of fiscal 2009, an increase of 13 per cent. Revenues rose two per cent to $948 million. While the recession has boosted outsourcing contracts as clients seek more ways to save money, CGI is feeling a drop in systems integration and consulting, its other business units. During the quarter, CGI booked $1.68 billion in new contracts, almost twice its quarterly revenue, which UBS analyst Jeffrey Fan said was the strongest in three years. Its orders backlog stands at $12 billion.

Automotive

Magna suspends dividend, Q1 sags

TORONTO - Magna International Inc. (TSX:MG.A) has suspended its dividend after first-quarter sales sagged 46 per cent from a year ago to US$3.57 billion, with a net loss of $200 million. The 70,000-employee auto parts maker, based north of Toronto but reporting in U.S. dollars, said today it lost $1.79 per share in the January-March period. This compared with net income of $207 million or $1.78 per share in the year-ago period, when revenue was $6.62 billion. Magna's results came as total vehicle industry production skidded by 50 per cent in North America and 40 per cent in Europe compared with the first three months of last year.

Food

Loblaw to refinance debt with notes

TORONTO - Loblaw Companies Ltd. (TSX: L) says it will issue $350 million worth of unsecured five-year notes and use the proceeds to repay short-term debt, refinance other debt and for general purposes. The country's largest grocery retailer said the notes, offered through a syndicate led by CIBC World Markets and RBC Dominion Securities, will pay 4.85 per cent annually until maturity on May 8, 2014. Loblaw said Tuesday that its net earnings climbed to $109 million for the quarter ended March 28, up from a year-earlier profit of $63 million. Its quarterly sales rose to $6.72 billion, up 2.9 per cent from $6.53 billion a year earlier. Loblaw has operations in all parts of the country under banners including Loblaws, Provigo, No Frills, Atlantic Superstore, Zehrs and Fortinos.

Health

Telus and Microsoft sign e-health deal

TORONTO - Telus Corp. (TSX:T) has signed an agreement with Microsoft Corp. (NASDAQ:MSFT) to host and operate an electronic service that manages and stores personal health records. The service, said to be the first of its kind in Canada, will be called Telus Health Space and will use a platform called Microsoft HealthVault. The service will be made available to organizations such as governments, health regions, hospitals, insurers and employers. Telus said it will operate the infrastructure and securely host all stored health data in Canada "to help ensure consumer privacy."

Media

Boston Globe, union reach deal

BOSTON - A spokesman for the Boston Globe says the newspaper has completed negotiations with its largest union. The Globe reports on its Web site that the newspaper and the Boston Newspaper Guild reached a tentative settlement early Wednesday on major contract concessions. Globe spokesman Robert Powers says in a statement details of the negotiations would not be released until Thursday. He says management must first sit down with members of the union. The Globe had proposed to slash wages by 23 per cent to gain concessions of $10 million and keep the financially-strapped newspaper from closing. The Guild had offered a total salary reduction of just under five per cent.

Software

Cisco earnings fall 21 per cent

NEW YORK - Cisco Systems Inc. says earnings fell 21 per cent in its latest quarter. The world's largest maker of computer networking gear posted a profit of US$1.3 billion, or 23 cents per share for its third quarter, which ended April 25.