TORONTO, April 30, 2004 – Brascan Corporation (TSX: BNN.A, NYSE: BNN) today reported cash flow from operations of $146 million or $0.74 per share for the first quarter ended March 31, 2004 which represents a 12% increase from the cash flow from operations of $0.66 per share reported in the same quarter during 2003. This growth was driven by increased contribution across virtually all of the company's operations. Power generation results increased significantly due to improved water conditions and the impact of acquisitions. Real estate operations increased meaningfully compared to 2003 as a result of continued growth in commercial property net operating income.
Net income increased almost three fold compared to the first quarter of last year, reflecting a substantial increase in the contribution from investments in the resource sector due to improved operating performance and higher prices.
|
For the three months ended March 31 |
| US$ millions (unaudited) |
| (except per share amounts) |
2004 |
2003 |
| Cash flows from operations |
$ |
146 |
$ |
130 |
| – per share |
$ |
0.74 |
$ |
0.66 |
| Net income |
$ |
147 |
$ |
56 |
| – per share |
$ |
0.75 |
$ |
0.23 |
“We are pleased with our performance in the first quarter, and specifically the strong contributions from our power generation activities. We are also gratified to record substantially improved results from our resource investments, which reflect both the strong contributions by their management teams in building these businesses as well as a dramatic improvement in prices. We are well positioned to respond to a number of opportunities and look forward to a successful year,” commented Bruce Flatt, President and CEO of Brascan.
Three For Two Stock Split And Dividend Declaration
Brascan previously announced a three-for-two stock split of the company's outstanding common shares, which will be implemented by way of a dividend. Shareholders of record on May 21, 2004 will receive one-half of a Brascan common share for each common share held (ie. one additional share for every two shares held) on June 1, 2004.
Prior to the stock dividend, shareholders will also receive a quarterly common share dividend of C$0.27 per share, payable May 31, 2004 in Canadian dollars or US equivalent to shareholders of record on May 1, 2004. The dividend will be paid on the shares outstanding prior to the stock dividend.
On April 29, The Board of Directors, declared a quarterly common share dividend of $0.14 per share, to be paid on August 31, 2004 to shareholders of record August 1, 2004. This amount is equivalent on a pre-share split basis to C$0.27 per share currently held, and will be payable in US dollars or the Canadian equivalent to shareholders. The company will continue to declare common share dividends in US dollars to conform with its adoption of the US dollar as its functional and reporting currency during 2003.
Information on the stock split dividend and on our common and preferred share dividends can be found on our web site under Stock Information.
Additional Information
The Letter to Shareholders for the first quarter ended March 31, 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 management's estimates of the underlying value of the company's operations.
Brascan Profile
Brascan Corporation is an asset management company. With a focus on real estate and power generation, the company has direct investments of $17 billion and a further $7 billion of assets under management. This includes 55 premier office properties and 48 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
or contact:
|
Katherine C. Vyse
Senior Vice-President
Investor Relations and Communications
Tel: 416-369-8246
e-mail: kvyse@brascancorp.com
|
Note: This press release contains “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.
