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Onex Corp. reports US$187M profit, says virus impact so far minor for businesses

TORONTO — Private equity firm Onex Corp. says it had net earnings of US$187 million in the fourth quarter compared with net earnings of US$88 million a year earlier when it reported under a different reporting standard.

The firm says that at the start of 2019 it determined it met the definition of an investment entity and so has changed its reporting accordingly, and so cautions against direct quarter-to-quarter comparisons.

Onex says in the quarter it had segment earnings of US$211 million across its investing and asset management divisions, working out to $2.04 per share, driven by net gains from its private equity investments, which increased in value by six per cent in the quarter.

Senior managing director Robert Le Blanc said on an earnings call that the firm is monitoring the volatility in the market this week but that so far there is no material concern for its private equity business. 

He says so far the coronavirus has had a "minor impact" on the companies it's invested in, mostly in supply chain and logistics, but they're monitoring the situation in real time.

The firm also declared a dividend of 10 cents per subordinate voting share, payable on April 30.

This report by The Canadian Press was first published Feb. 28, 2020.

Companies in this story: (TSX:ONEX)

The Canadian Press