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Mining

Major Drilling reports Q4 loss

MONCTON - Major Drilling Group International Inc. (TSX:MDI) reported a fourth-quarter loss on Monday as revenue was cut in less than half.

The company said it lost $4.6 million or 19 cents per share for the three months ended April 30 compared with a profit of $25.4 million or $1.07 per share a year ago. Revenue for the quarter totalled $66.4 million, down from $170 million. "In January, due to the uncertainty in the economy, many customers delayed or cancelled their exploration drilling plans, and continued to be cautious through February, March and April," Major Drilling president and chief executive Francis McGuire said in statement. "In addition, lower levels of demand have significantly increased competitive pressures, which has impacted pricing. Pricing has dropped by more than 20 per cent overall but we have been able to offset some of this loss through productivity gains and cost cutting." In February, the company cut directors' fees and salaries of the company's top 40 executives by 10 per cent in an effort to reduce costs. For the financial year ended April 30, the company reported a profit of $45.9 million or $1.94 per share on $523 million in revenue compared with a profit of $74.1 million or $3.14 per share on $590.3 million in revenue the previous year.

Tourism

Industry promotes 'staycations'

TORONTO - As the tourism industry across the country prepares for a sluggish season, many provinces are focusing on travel-weary Canadians and promoting vacations at home. Bruce Sparkes, chairman of Hospitality Newfoundland and Labrador, says the so-called staycation is becoming a popular concept and provinces are competing feverishly to win over Canadian tourists. Don Boynton from Travel Alberta says he's anticipating a downward trend in international travel but he's optimistic about attracting people from Western Canada, especially for the summer's showcase event, the Calgary Stampede. Alberta residents typically account for 50 per cent of the province's tourism dollars and that's encouraging to Boynton, who believes Canadians will be even more likely to explore their own backyards this summer. But some tour operators in Vancouver say they're dependent on summer income and worry about losing international travellers visiting. The world's airlines announced a collective loss of US$9 billion is expected this year. They're in the grips of the most difficult situation they've faced.

Metals

Xstrata Nickel mine shutters indefinitely

TIMMINS, Ont. - An Xstrata Nickel (TSX:FAL.PR.A) mine in Timmins, Ont., is being shut down over safety concerns. The company has announced the indefinite closure of its Montcalm mine, which suffered damage in March as a result of a large blasting operation. Manager Keith Bullock says the facility can't be accessed as contractors work to determine the damage to the structure. In all, about 200 workers are affected by the decision. Bullock says safety is the company's paramount concern and that's why the facility will be shut down.

Transport

Work to start on US$8.7B tunnel

NORTH BERGEN, N.J. - Officials are launching America's largest transportation project - a third tunnel into New York City that's expected to generate 6,000 construction jobs and be completed by 2017. The tunnel was launched at a ceremony Monday in northern New Jersey. It will be burrowed under the Hudson River and will speed the commute from New Jersey to New York City. Federal Transit Administration chief Peter Rogoff says the rail tunnel is the largest ever funded by his agency. The tunnel will double commuter rail traffic from New Jersey and allow an increase in direct routes by eliminating a chokepoint.

Retail

P&G set to name new CEO: report

CINCINNATI - Procter & Gamble Co. is reportedly ready to name 29-year company veteran Robert A. McDonald to succeed A.G. Lafley as CEO of the world's largest consumer products maker. A Wall Street Journal report Monday attributed the planned move to unidentified people familiar with the matter. P&G spokesman wouldn't comment on "rumour and speculation." P&G's board of directors, which would have to approve the move, meets Tuesday in Cincinnati.