| |
|
Press Room
|
|
|
|
|
Financial results for fiscal year 2004
SGF is on the right track to profitability
Montréal, May 30, 2005 - Société générale de financement du Québec (SGF) today announced its consolidated, audited financial results for the year ended December 31, 2004, in the presence of the Minister of Economic Development, Innovation and Exports, Claude Béchard.
“Considerable efforts have been made in the past two years to put SGF back on the road to profitability,” Mr. Béchard said. “In view of the deficits accumulated in recent years under the former government, we have made changes to SGF’s management methods. In today’s current growth context, I remain optimistic about the future of SGF, which is an essential instrument for Quebec’s economic development.”
2004 results
After a net loss of $511 million in 2003, SGF reduced its deficit by tenfold for 2004, with a net loss of $50 million. This significant turnaround was primarily due to the implementation of programs designed to improve the profitability of companies in its portfolio, as well as to the substantial decrease in provisions for declines in value.
Meanwhile, investment results showed a clear improvement in 2004: a loss of $34 million was recorded, versus a $153-million loss for the previous year.
“Over the past two years, we have shown we have the power to move forward,” said Pierre Shedleur, Chairman of the Board, President and General Manager, SGF. “The efforts made and actions taken ensured that SGF’s financial performance for 2004 was its best since 2000, and we are confident that we will retain the same momentum during 2005.”
SGF’s operating expenses were down substantially during the period, dropping to $27 million in 2004 from $39 million in 2003. These improved results were the result of the program to streamline SGF’s structure and organization and better control expenditures.
Outlook for 2005
In early 2005, the SGF management team focused its efforts on defining key orientations for the next five years, as well as implementing a structure to achieve its goals, including creation of an investment committee mandated to ensure that investment projects submitted are compliant with SGF’s mission. The Company now looks firmly ahead to the future and to continuing to support the growth of Quebec’s economy.
The Société générale de financement du Québec (SGF) is an industrial and financial holding company. Its mission is to carry out economic development projects, especially in the industrial sector, in cooperation with partners and in accordance with accepted requirements for profitability and the Government of Quebec’s economic development policy. For more information, please visit the SGF website at sgfqc.com.
-30-
Source : Sylvie Brousseau
Director, Communications and Public Relations
Pierre Choquette
Press Attaché
Office of the Minister for Economic Development, Innovation and Exports
|
|
|
|