National Post from Toronto, Ontario, Canada • 25

INVESTOR'S GUIDE October 24, 1988 25 The financial post A record ol revenue, net Income and earnings per share data lor latest reporting period and latest quarter, as provided by Canadian companies. Where a company has extraordinary Items, the first earnings figure it before extraordinary items, the second is after. Rescheduling hurts Compiled by Thi Financial Foil kthntmrtu Nat income 1988 Changs $'000 -36 57 35 4,824 143,000 44,500 Intornatlonal ButsK 6 mo. June 30) 328 925 d209 htventronlci Ltd. (3 mo.

Aug. 31) 2,891 36 167 1418 0.07 0.01 After ex feme 282 1243 0.12 0.01 loni Appliance (3 mo. Sept. 30) 3,610 -21 20,708 -96 nj. Ipeco Inc.

(9 mo. Sepl. 30) 321,748 64 25242 in 1.80 d0.02 Thrd quarter 106,621 45 8,673 236 0.61 0.19 30) 227 ,322 -33 38,470 -21 1J6 1.77 Thrd quarter 82,645 -37 13,486 -24 0.48 0.65 88,427 57 10,676 54 0.89 0.58 Fourth quarter 26,011 66 3,354 60 028 0.17 KelMV-Hayes Canada (9 rro. Sept. 30) 110,885 5 4,830 67 0.73 0.44 Karkhoff Induatrlaa (3 mo.

Aug. 31) 6,757 na. 932 u. 0.32 in 4) 1,889 76 62 -45 0.02 0.03 31) 5,935 147 59 -58 0.01 0.03 Lomsx Mining (9 mo. Sepl 176,900 24 44200 65 5.35 3.25 Thrd quarter 1 59,300 14 15,400 39 1.86 1.35 MDC Corp.

(9 mo. Aug. 31) 6,488 14 466 -18 0.04 0.06 After ex Items 40 -86 0.03 MacMlllan Bloadal Ltd. (9 mo. Sept.

30) 2,472,400 6 256,600 18 2.31 1.95 TNrd quarter 824,400 1 70,500 -15 0.64 0.74 Mhix Inc. (6 mo. Aug. 31) 7,305 49 261 -50 0.05 0.11 Mlntron Enterprises (9 ro. JJy 4,835 108 103 na.

0.11 dO.01 Nfld. Capital Corp. (9 mo. Sept 30) 141,568 21 4,182 21 0.84 0.70 After ex items 4,502 6 0.91 0.86 TNrd quarter 50,857 13 603 -63 0.12 0.32 Noma InduatrlM (9 mo. SepL 30) 470,043 25 20,102 22 0.67 0.55 Aflerexitems 11,102 -32 0.37 0.55 Earnings per share 1988 1987 0.61 0.95 1.98 123 0.61 0.45 US4.14 USUI US1.61 US0.72 0.21 0.25 0.26 0.07 0.48 0.22 0.18 0.12 0i8 021 US676.000 128 US25B.000 111 914 -17 1,755 259 3,221 117 1,189 40 for the current year, and about for 1989.

Thomas Law, an analyst with Nesbitt Thomson Deacon says the overall outlook for the company is positive. The stock is a "long-term buy," and projects earnings of in 1988 and in 1989. Mississauga, Northern Telecom is a major supplier of fully digital telecommunications systems. BCE Inc. holds 52.5 of the outstanding common shares.

9 mo. Sept 30: Change Revenue 3,822,000 8 Net income 200,700 -3 Net per share $0.79 -4 32 1,8 RESCHEDULING of product shipments in its U.S. central office switching business from the third to fourth quarter led to a drop in third-quarter earnings for telecommunications giant Northern Telecom Ltd. For the nine months ended Sept. 30, 1988, net income slipped 3 to million (79 per common share), down from million (82t) for the corresponding period last year.

Revenues climbed 8 to billion from billion. Third quarter earnings dropped 14 to million (23t) from million (28) for the similar period last year. Revenues increased 6 to billion, up from $1.16 billion in 1987. The company says the rescheduling was particularly prominent for the DMS SuperNode products. It estimates it will ship at least 300 SuperNode units in 1988, which is "well in excess" of its earlier expectations.

Chairman and Chief Executive Officer Edmund Fitzgerald said Northern Telecom had a record order input this past quarter. He said the order backlog was the "highest since the third quarter of 1986," and that delivery intervals of major product lines were shortened 30 to 50 over the past three years. Murray Grossner, an analyst with Richardson Greenshields of Canada says the company's results were below expectations. He says an earnings drop of 5t per share in the third quarter was "meaningful," and might indicate the company is not doing as well as it should be. He cites NorTel's "lack of sensitivity to costs with respect to revenue growth" as a problem.

Overall, he says, Northern Telecom shares are a "hold" on the basis that the priceearnings ratio is low and the company's return on equity is relatively high. He expects earnings per share to reach to na. d0.20 0.02 n.a. d0.12 0.06 2.11 1,79 0.73 0.67 18 11 ru. d0.36 0.14 na.

d0.46 014 d927 117200 40,800 03,078 235 d155 16215 6,755 292 0.12 0.03 -3 US0.79 US0.62 -14 US023 US028 8 6 Northern Telecom (9 mo. SepL 30) US3.822.0O0 TNrd quarter 1 Shares os 237 million Return on equity, annualized: 1 1.4. Earnings margin: S.3. n.a. dO.05 d0.02 37 0.46 0.34 90 0.19 0.10 0.88 0.46 0.89 0.40 028 0.19 US200.700 US60.100 14,900 15,000 4,700 4,800 3,455 1,341 62,700 23,300 Change 6 -14 -18 -6 1.50 1.60 -18 0.44 0.54 Third quarter: Revenue 1,229,100 Net income 60,100 Net per share $0.23 94 127 52 55 505 103 44 36 Onai Packaging Inc.

(9 mo. Sepl 30) 344,500 3 Aflerexitems TNrd quarter 128,500 -1 After ex items Parkins Papers (9 mo. Sepl 30) 48,425 33 TNrd quarter 16,713 49 Repap Enterprise (9 mo. Sept. 765,000 11 TNrd quarter 260,100 18 1.45 1.17 029 0.19 0.54 0.09 021 0.11 121 0.91 0.45 0.31 38,000 11,100 183,131 73,132 711 206 1,732 271 13,494 26 39 4 -43 22 -82 388 0.58 0.42 0.05 0.04 0.01 0.02 0.17 0.16 0.20 0.34 0.80 022 Salts or rsvenus 1968 Change S'OOO 28,249 -54 Ab(tlbHrlc Inc.

(9 mo. Sept 30) 2,446,900 11 TNrd quarter 813,400 8 Mean Aluminium Ltd. (9 mo. Sept 30) 28 TNrd quarter 26 Amlsco Induttrles Ltd. (9 mo Aug.

31) 25,208 60 Astral Btlltvu (6 mo. Aug. 31) 1 16,277 31 After ex Hems Second quarter 60,400 30 After ex Hems AttanUqiM Video (26 wks. SepL 10) 766M 3 Second quarter 46,900 1 B.C. Tel (9 mo.

SepL 30) 1,280,600 8 1 TNrd quarter 430,000 6 Barona CHI Ltd. (6 mo. Aug. 31) 2,152 -39 After ex Heme Brewbac Resourcet (12 mo. March 31) 1,743 538 Brick Brewing Co.

(6 mo. JJy 1,778 61 Brunswick Mining (9 mo. SepL 232274 22 Trid quarter 78,459 29 CGC Inc. (S mo. SepL 30) 21O700 TIM quarter 68,700 -5 CT Fin.

Services (9 mo. SepL 30) 2,010,000 10 Third quarter 713,115 14 Canadian Roxy Pat (6 mo. June 30) 11,997 9 Second quarter 5,302 3 Canadian Satellite (12 mo. Aug. 30,545 24 After ex Hems Casslar Mining (9 mo.

SepL 30) 73,496 78 Celanese Canada (9 mo. Sept 30) 293,900 16 TNrd quarter 92,600 14 Clarepln Induetrlee (9 mo. Aug. 31) 25,202 43 After ex Hems TNrd quarter 7,729 -20 After ex Kerns Cora-Mark Intj Ltd. (9 mo.

SepL 1,763,968 -1 Co-Steel Ina (9 iro. Sept 30) 738,400 22 After ex iters TNrd quarter 238,000 18 After ex feme Dalmy'i (Canada) (26 wks. Aug. 27) 69,149 2 Dexlelgh Corp. (12 mo.

June 30) 89,366 41 Du Pont Canada (9 mo. SepL 1,040,300 6 Third quarter 316,800 E-L Financial Corp. (9 mo. Sept 30) 459,341 After ex items Enfield Corp. (3 mo.

SepL 30) 177,942 62 Environmental Safety (12 mo. June 30) US5.197 23 After ex items Frst quarter US2.747 147 Federal Pioneer (9 mo. SepL 30) 198,975 12 First Merc. Cur. Fund (9 mo.

Aug. 31) 767 -84 20,357 -21 Frsl quarter 5,502 1 Gemini Technology (9 mo. SepL 30) 3,418 1475 Third quarter 420 492 Hemk Gold Mines (9 mo. Sept. 30) 143,521 3 TNrd quarter 47,540 -31 Inglis Ltd.

(9 mo. Sept. 30) 325,421 8 Thifd quarter 120,137 4 Faltering crude oil prices squeeze revenues for Canadian producer 3.12 2.92 1.36 125 1.17 1.00 0.39 0.32 0.22 0.93 (J0.30 027 0.84 0.74 1.98 0.18 024 0.13 1.77 1.90 6 7 15 12 -76 n.a. 13 603 64 6 18,000 7,900 164,000 55,000 5,800 07,900 12765 47,697 7,129 9,500 216,800 1 107,000 2,019,000 22 710,000 24 240,700 37 90200 59 242,986 9 409,681 94 117,721 113 139,500 36 Rothmani Inc. (6 mo.

Sept 30) Second quarter Royal Trust (9 mo. Sept 30) Third quarter SHL Systemhous (12 mo. Aug. 31) Fourth quarter Scott Paper Ltd. (9 mo.

Oct 1) Sherrirt Gordon Ltd. (9 mo. SepL 30) Thrd quarter Slocan Forest Prod. (9 mo. Sept.

30) 87 85 M. na. n.a n.a. rut. 83 83 91 2.63 1.38 0.88 0.47 d0.45 d021 d0.45 d0.09 d0.26 0.19 d0.26 020 0.58 d126 1.65 0.90 1.95 1.07 0.53 0.28 36,500 12200 d902 d902 d518 4518 7,973 39,800 47,100 12,800 -88 0.59 0.32 n.a.

d0.23 0.09 Thrd quarter 43,300 1 2,700 -21 0.51 0.71 Tete-Metropola Inc. (12 mo. Aug. 31) 102,870 4 381 -95 0.05 1.03 Aflerexitems d5.128 -25 d0.66 0.87 Texaco Canada (9 mo. SepL 30) 2,000,000 -5 242,000 5 2.00 151 Thrd quarter 647,000 -8 91,000 2 0.75 073 Toronto Sun (39 wks.

SepL 24) 185,400 42 15,100 34 0.68 0.56 TNrd quarter 65,400 48 4200 40 0.19 0.15 1,595 -14 438 na. dO.01 0.09 Aflerexitems 231 -50 0.05 0.10 Frst quarter 163 -26 41 -15 0.01 0.01 0.13 0.09 unleaded gasolines led to a 9 increase in income to $71 million from $65 million in 1987. Texaco acquired Canterra Energy Ltd. this year, and increased its capital and exploration expenditures in the nine months by 84. Dry-hole expenditures jumped 151.

Bijur said this demonstrated Texaco's long-term commitment to reserve replacement. U.S. parent Texaco Inc. (74 interest) put Texaco Canada up for sale in August. The company has a $4-5 billion price-tag.

It owns two refineries producing more than 100,000 barrels a day of low-cost oil and 1,818 gas stations. 25 18 4 United Canadian up WlNNlPEG-based United Canadian Shares Ltd. reported third-quarter net income of $1.1 million (75t a share) up 42 from $772,258 (54t) for the corresponding period in 1987. Revenues were slightly higher at $14.7 million vs $14.6 million. For the nine months ended Sept.

30, 1988, net income increased to $2 million ($1.40 a share) up 2 from $1.9 million ($1.35) in 1987. Revenues increased marginally to $49.6 million from $49 million. The company is Canada's largest tanner of cattlehide leathers. It declared a 20t common share dividend (up 5t) payable Nov. 30, 1988 (record Nov.

15, 1988). WIC extraordinary gain NET income before extraordinary items for the year ended Aug. 31, 1988, was up 57 to $6.6 million (70 a share fully diluted) from $4.2 million (49t) for Vancouver-based WIC Western International Communications Ltd. Extraordinary items brought net income to $6.8 million (99t) from a net loss of $634,000 (9t) reported in 1987. Revenues climbed 14 to $108 million from $95 million.

The company has radio and television broadcasting interests throughout Canada, including 50 ownership of Canadian Satellite Communications Inc. (Cancom). A 12Vzt dividend was declared, payable Deer 30, 1988 (record Dec. 15, 1988). 18 223 18 0.64 14,300 d971 11,541 84,600 21,400 23253 27,995 d5235 US444 US444 US367 -9 n.a n.a.

-6 728 7.74 na. dO.15 0.72 -4 US0.14 US0.20 2 US0.14 US021 117 US0.12 US0.05 LOW and unstable crude oil prices pushed down revenues in the nine-month period ended Sept. 30, 1988, for Texaco Canada Canada's fourth-largest oil producer and 14th-largest gas producer. President Peter Bijur said: "Crude oil prices continue to be a concern in the near term." Net income for the nine months was $242 million ($2 per share) on revenue of $2 billion vs $231 million 1 .91) on the higher revenues of $2. 1 billion reported in 1987.

For the third quarter, net income climbed 2 to $91 million (75t a share) from $89 million (73t). Revenues fell 8 to $674 million from $700 million. Favorable tax gains in 1988 results were offset by the writeoff of the Venture Gas Field interest. Lower crude oil prices pushed operating income down in the energy resources sector 22 to $120 million from $153 million in the 1987 period. Petroleum products the healthier sector benefited from increased margins and higher sales volumes.

Increased demand for high-octane 8 n.a. 0.97 0.93 d0.16 1.34 9 mo. Sept. 30: $000 Revenue 2,000,000 Net income 242,000 0.97 0.84 na. 0.16 020 d0.26 d0.14 d021 d0.08 na.

na. 1.40 1.35 0.75 0.54 028 0.5 0.04 0.04 0.96 0.60 0.99 dO.09 0.06 0.01 0.02 0.01 16 na. na. n.a 2 38 -63 12 35 57 na. 365 108 2428 05.055 951 (890 (J892 2,780 1,982 1,065 6 1,550 220 6,600 d634 553 214 21,600 88 53,349 29 8,174 20 1279 -14 480 -32 2,775 49,605 2 14,661 88 6 33,000 21 9,700 23 108,000 14 8,146 227 3,749 219 Transit Fin.

Hldgs. (9 mo. Sepl 30) Triton Energy (3 mo. Aug. 31) Tuckahoe Financial (6 mo.

SepL 30) Twin Richfield Oils Ltd. (6 mo. June 30) Second quarter ULS Capital Corp. (6 mo. Sept.

30) United Canadian (9 mo. Sepl 30) Third quarter VTL Ventura Corp. (6 mo. Jme X) Vitran Corp. Inc.

(9 mo. Aug. 31) TNrd quarter Western International (12 mo. Aug. 31) After ex terns Zavltz Technology (9 mo.

Aug. 31) TNrd quarter Change -5 5 6 na. d020 d028 n.a. na. na.

na. dO.04 d0.29 na. dO.10 d0.12 14,837 d160 d258 d285 d741 32,556 7,478 $2.00 Net per share Return on equity, annualized: 12.4. Earnings margin: 12.1. -7 -64 0.37 0.40 0.08 023 Third quarter: Revenue Net income 17 -18 1.17 0.97 0.37 0.44 1,941 Change -8 2 3 $000 847,000 91,000 $0.75 Net per share Tobacco earnings strengthen General insurance hampers performance strength, shutdowns hinder third quarter compared with $6.2 million the previous year.

Analyst Steven Garmaise of First Marathon Securities Ltd. said Rothmans' results were well above estimates. Garmaise said the company's "trends are exciting," particularly its cash flow of about $10 a share. He said the company has scant debt, and operates in a very profitable industry. Garmaise is bullish on the stock and expects earnings per share to exceed $6 for the current fiscal year.

However, Michael Palmer of Deacon Morgan McEwen Easson Ltd. said Rothmans' sales "were not particularly strong," and that the company appears to be losing market share. Neil Wickham, an analyst with Canarim Investment Corp. considers the stock a "sell" because Rothmans is in a declining market, and predicts earnings per share this year of about $5.40. 6 mo.

Sept. 30: $000 Change Revenue 216,800 1 Net income 18,000 6 Net per share $3.12 7 Return on equity, annualized: 28.7. Earnings margin: 8.3. tion of Dominion of Canada General Insurance Co. into one entity in 1987.

Diane Urquhart, an analyst at Burns Fry said that general insurance is in cyclical decline both in Canada and the U.S. The general insurance underwriting activities of Dominion of Canada have dragged down E-L's earnings since it was acquired in 1985. Urqhuart maintains that shares of life insurance companies are outperforming the market, particularly in the U.S. Not favored before the crash, the Toronto Stock Exchange's insurance index has picked up 20 vs the TSE 300's 7. "Earnings are more stable in recession and benefit from declining interest rates, so insurance companies are popular defensive stocks." INCREASED earnings from tobacco operations boosted net income for Toronto-based Rothmans Inc.

for the first half of fiscal 1989. Net income for the six months ended Sept. 30, 1988 climbed 6 to $18 million ($3.12 per share), up from $17 million ($2.92) for the corresponding period last year. Sales, net of excise and sales taxes, increased marginally to $216.8 million, compared with $215.6 million last year. Earnings from tobacco operations after minority interest jumped 20 to $16.7 million, up from $13.9 million the previous year.

One reason the company's net earnings rose just 6 despite a 20 increase in earnings from tobacco operations was a drop in after-tax investment income. Investment income tumbled 58 to $1.3 million, down from $3.1 million the previous year. That stemmed from Rothmans' sale in February, 1987, of its 50.1 interest in Carling O'Keefe Ltd. to Elders IXL Ltd. Second-quarter earnings improved 7 to $7.9 million up from $7.4 million ($1.25) a year earlier.

Net sales for the period slipped to $107 million from $107.2 million. Earnings from tobacco operations jumped 15 to $7.1 million, A deterioration in general insurance underwriting business has resulted in unimpressive results for the Jackman family's Toronto-based E-L Financial Corp. a holding company with interests in insurance underwriting and investment advisory services. Net income including gains on securities portfolios was $28 million ($7.28 a share) for the nine months ended Sept. 30, down 6 from $29.7 million ($7.74) a year earlier.

Earnings from operations were 8 higher at $11.7 million ($3.04 a share) vs $10.8 million ($2.80) in 1987. Nine-month revenues were down 4 to $459.8 million from $461.5 million. General insurance premiums (53 of revenues) grew a modest 2, but life insurance premiums (25) fell 12 from 1987 levels. E-L Financial controls National Victoria Grey Trust, Fulcrum Investment Co. Ltd.

and United Corps. Ltd. Its insurance holdings include Casualty Co. of Canada and Canadian Indemnity Co. E-L merged its three life insurance units, Empire Life Insurance Montreal Life Insurance and the life insurance sec strength of the Canadian dollar as "a major detriment to earnings," since it reduced Macblo's competitive advantage.

The company said the market for its pulp and newsprint products "generally remains strong," as does the container-board business. However, demand for building materials is "mixed," while housing starts are on a downward trend. Stephen Atkinson, an analyst with McNeil, Mantha gives MacBlo credit for its low debt-to-equity ratio and its financial strength. But he cautioned that the "earnings picture is going to decline" within the next year because of heavier discounting in the lumber sector and over-supply in the newsprint market. He estimates earnings per share for the current year at $3.10, dropping to $2.75 in 1989.

9 mo. Sept. 30: $000 Change Revenue 2,472,400 6 Net income 256,600 18 Net per share $2.31 18 Return on equity, annualized: 28.6. Earnings margin: 10.4. earnings of Vancouver-based forestry giant MacMillan Bloedel Ltd.

improved for the first nine months of 1988, despite the shutdown of several mills in the third quarter. Net income increased 18 to $256.6 million ($2.40 per share) for the nine months ended Sept. 30, 1988, up from $201 million ($1.99) for the comparable period last year. Sales climbed 6 to $2.47 billion from $2.34 billion. Third-quarter earnings dropped 15 to $70.5 million from $82.7 million (74t) in 1987.

Sales for the period increased marginally to $824.4 million, up from $817.1 million last year. The company attributed the recent earnings decline in part to the shutdown of the Harmac mill, which was down for five weeks for an emission-reduction project. The capital costs for the project were $35 million, and the estimated profit opportunity forgone was an additional $24 million. The mill is now back in full production. Other factors that held down earnings included a prolonged fire season, which caused logging operations to be extensively curtailed.

A number of sawmills were shut down for maintenance and other changes. The company also blamed the Change -9 -6 9 mo. Sept. 30: Revenue Net opers. Net income $000 459.841 23,253 27,995 Net per share: Net income -6 $7.28 Change 7 9 $000 107,000 7,900 $1.36 Second quarter: Revenue Net income Net per ehare Shares os 3.3 million Return on equity, 6.7.

Earnings margin: 5.1. $000 Change 824,400 1 70,500 -15 $0.64 -14 Third quarter: Revenue Net income Net per ehare New owners oversee turnaround RBC Dominion enters Royal Bank inner cabinet Astral sees steady growth as net more than doubles By Sonita Horvitch Financial Post CANADA'S largest bank, Royal Bank of Canada, is slotting RBC Dominion Securities Inc. into its highest management echelon. Royal acquired 67 of Canada's largest dealer, Dominion Securities at the end of last year. After the purchase, Anthony Fell, head of Dominion Securities, reported to Royal Bank's Robert Paterson, senior executive vice-president, investment banking and treasury.

Paterson in turn reported to Allan Taylor, Royal's chairman and chief executive officer. Now Paterson, 60, retires at the end this month and Fell will report directly to the bank's top man. So will Paul Taylor, 45, executive vice-president, investment banking, who has risen steadily in the bank. Both Fell and Paul Taylor will be part of months. Losses from a discontinued business, ASI Telesystems pushed Core-Mark to a final net loss in 1987 of $11.5 million There were no comparable losses in 1988.

Revenues for the nine months were off slightly at $1.8 billion. A 5 rise in sales from U.S operations was offset by the strength of the Canadian dollar. Canadian sales increased by 23. After six consecutive quarters of losses, company founder David Gillespie sold his 74 holding in March, 1987, to his brother Daniel. In turn, these shares were purchased by First City Capital Corp.

(a merchant bank controlled by the Belzberg brothers) and Corporate Pacific Ltd. (60 owned by Australian holding company Capvest Neil Wickham, an analyst at Canarim Investment says Core-Mark had substantially improved margins over the period. The company recently laid off 65 people in head office and trimmed overhead. It has cut back inventory levels, improved turnover and cut distribution costs. Wickham expects improved margins and rising sales over the next two years.

He has revised his earnings projections for Core-Mark upward to a share from for the 1988 fiscal year. He predicts the company will earn a share next year. dent, finance, said he expects "consistent growth in all areas" of the company's operations. He said the video wholesaling division is maintaining a profitable trend, while pay television operations continue to be strong contributors. The Family Channel was launched in September, 1988, but is not expected to contribute to earnings in the short term.

Canal Famille, the French-language family channel, was also launched last month. Marchant expects it will contribute to earnings in the near future. Jon Reider, an analyst with Richardson Greenshields of Canada said the company is a "solid investment." He said Astral has turned around its video operations, and he expects continued earnings growth. THE GOLDEN TOUCH of Vancouver's Belz-, berg brothers has led to a turnaround in earnings of consumer packaged goods distributor Core-Mark International Inc. Net income from continuing operations for the nine months ended Sept.

30, 1988, jumped 70 to $8 million (58t a share) from $4.7 million (28t) for the 1987 nine Joint venture cuts into Hemlo earnings INCREASED spending on the Tundra Project, a joint venture with Noranda Inc. cut into third-quarter earnings of Hemlo Gold Mines one of North America's largest and lowest-cost gold producers. Net income slid 63 to $7.5 million a share) for the quarter ended Sept. 30, 1988, from the $20.5 million reported for the same period in 1987. Revenues dropped 31 to $47.5 million from $68.6 million a year earlier.

This brought nine-month net income down 7 to $32.6 million (37 a share) from $35 million (40t) in 1987. Revenues fell 3 to 143.5 million from $139 million. The previous two quarters had reported results above comparable periods in 1987. Noranda with 50.1 ownership in Hemlo, conducts all exploration activities on behalf of the company. The two are participating jointly to exploit fully all of Noranda's Western Canadian precious minerals properties.

Hemlo is hooking itself up with several junior companies as part of its exploration strategy. Allan Taylor's inner cabinet. In this role, they join John Cleghorn, president; Brian Gregson, senior executive vice-president (risk management); and Mike Michell, vice-chairman. For Paul Taylor it represents a decided promotion. He was formerly deputy chairman of London-headquartered Orion Royal Bank Ltd.

(which has been downsized and folded into RBC Dominion Securities). He returned to Canada in late 1987 to assist Paterson, and was made executive vice-president, investment banking, in early 1988. As part of the reorganization, Vice-Chairman Michell will take on Paterson's treasury and money management functions in addition to his responsibilities for administration. Reporting to him will be Bruce Galloway, executive vice-president, treasury; Graham Aitken, senior vice-president and treasurer; Ian MacKay, president and chief executive officer of Royal Bank Investment Management Inc. (the money management arm); and John Sanders, former head of Orion Royal Bank, who now heads up the bank's private banking division out of London.

At one time it was thought that Paul Taylor, Galloway and Sanders were competing for Paterson's job. In that Taylor now reports at the highest level, he seems to have won a certain edge. On retirement, Paterson will become chairman of Royal Bank Investment Management. STEADY GROWTH in the video tape and film distribution markets boosted earnings for Montreal-based Astral Bellevue Path6 Inc. For the sue months ended Aug.

31, 1988, net income before extraordinary items was $1.8 million (26t per share), up from $489,000 (7) last year. Including extraordinary items, net income more than doubled to $3.2 million (48t per share) for the six months ended Aug. 31, 1988, up from $1.5 million (22t) for the corresponding period last year. Revenues for the period climbed 31 to $116.3 million, up from $88.6 million last year. Extraordinary items in the first half came from prior years' tax losses of $1.5 million.

In the previous year, extraordinary items comprised a tax loss less reorganization expenses totalling $992,000. For the three months ended Aug. 31, 1988 net income before extraordinary items was $1.2 million up from $851,000 (12t) last year. Earnings including extraordinary items for the second quarter increased 32 to $1.9 million compared to $1.4 million (2 It) for the similar period last year. Revenues jumped 30 to $60.4 million, up from $46.4 million.

Murray Marchant, AstraFs vice-presi Change 31 269 117 $000 116,277 1.755 3.221 6 mo. Aug. 31: Revenue Net opera. Net income Net per ahare: Net opera. Net income 271 118 $0.26 $0.48 Return on equity, annualized: 6.9.

Earnings margin: 1.6. Second quarter: $000 Revenue 60,400 Kelsey-Hayes ahead Net income of Windsor-based Kelsey-Hayes Canada Ltd. shot up 67 to $4.8 million a share) in the nine months ended Sept. 30 from $2.9 million (44t) in the year-earlier period. Sales were $110.9 million, a 5 increase over the 1987 figure of $105.8 million.

The company manufactures parts for the automotive and farm machine industries. Change -1 Change 30 40 32 $000 1,763.968 7.973 $0.58 mo. Sept. 30: Revenue Net income Net per ahare Net opere. Net Income 1,189 1,892 Net per ehare: Net opera.

Net income Return on equity, ennualized: 21.7. Earnings margin: 0.5. 50 33 $0.18 $0.28.