Shares of the Canadian company rose in pre-market trading as it also raised its 2013 outlook.

Net earnings climbed to $369 million, or $1.57 per share, in the quarter ended March 31 from $343 million, or $1.46 per share, a year earlier.

Sales rose 9 percent to $8.36 billion.

Analysts had expected a profit of $1.43 a share on revenue of $8.09 billion, according to Thomson Reuters I/B/E/S.

Magna shares climbed to $64.04 in pre-market trade, up from their close at $62.71 in New York on Thursday.

Magna, which makes parts ranging from mirrors and auto bodies to electronics and powertrain systems, said total sales for 2013 were expected to come in between $32.6 billion and $34 billion, above its previous forecast of C$32 billion to C$33.4 billion.

It expected total production sales for the year to fall between $27.2 billion and $28.2 billion, up from its previous forecast range of $27 billion and $28 billion.

Production sales are sales from Magna’s core business of manufacturing vehicle parts and exclude its smaller vehicle-assembly and tooling operations.

(With additional reporting by Ankur Banerjee; Editing by Jeffrey Hodgson and Nick Zieminski)

Hedge fund Highfields Capital, which owns about 4 percent of Tim Hortons shares, has been pressuring the company to boost shareholder returns and appoint new board members with more financial experience.

“We are a very healthy company and we want to stay a very healthy company,” House said in an interview with Reuters after the company’s annual shareholders meeting in Toronto on Thursday.

“Anything we do is going to be a long-term thing. We have never looked at anything short term,” said House, who is set to step down as CEO in July. “Our shareholders that have been with us a long time, they hold our stock because they have confidence that we are very conservative, long-term thinkers.”

According to documents viewed by Reuters, Highfields wants Tim Hortons to raise about $3.4 billion in debt and buy back roughly 37 percent of its outstanding shares.

Tim Hortons shares closed down 2.4 percent at C$55.75 on the Toronto Stock Exchange on Thursday.

House, who is set to hand over the reins to Nestle (NESN.VX: Quote, Profile, Research, Stock Buzz) veteran Marc Caira on July 2, said Tim Hortons board has not yet decided on the debt levels it is comfortable with, but that it remains focused on maintaining an investment grade rating and it would not go to the levels suggested by Highfields.

“I don’t think that we’d leverage up to that point, no, not at all,” he said.

“(Canadian) companies don’t leverage up to the extent that a lot of companies do in other parts of the world, that’s for sure,” House added. “I think you’ve got to be very, very careful in these unsettling times as to what you do from a leverage point of view.”

Tim Hortons boasts that it sells eight of every 10 cups of coffee sold in Canada, but analysts now question if the brand, as much a Canadian symbol as hockey and the Maple Leaf flag, has room for further growth at home.

With some 3,400 company-owned and franchised stores in Canada, it faces a tough fight for market share as rivals such as McDonald’s MDD.N and Starbucks (SBUX.O: Quote, Profile, Research, Stock Buzz) step up the competition.

House said Tim Hortons is looking at people with financial expertise as it seeks to fill two vacant spots on its board, as has been demanded by Highfields. House said the board already has financial expertise, but that the death of board member Ronald Osborne in April has left a hole in that area.

“While we do not question the operating backgrounds of many of the current board members, we feel the company could benefit from more financial expertise,” Highfields said in a letter to Tim Hortons’ board. “We believe it imperative to upgrade the board with new members who could help develop and implement a more appropriate capital allocation strategy.”

($1=$1.01 Canadian)

(Reporting by Solarina Ho; Writing by Euan Rocha; Editing by Peter Galloway)

Hedge fund Highfields Capital, which owns about 4 percent of
Tim Hortons shares, has been pressuring the company to boost
shareholder returns and appoint new board members with more
financial experience.

“We are a very healthy company and we want to stay a very
healthy company,” House said in an interview with Reuters after
the company’s annual shareholders meeting in Toronto on
Thursday.

“Anything we do is going to be a long-term thing. We have
never looked at anything short term,” said House, who is set to
step down as CEO in July. “Our shareholders that have been with
us a long time, they hold our stock because they have confidence
that we are very conservative, long-term thinkers.”

According to documents viewed by Reuters, Highfields wants
Tim Hortons to raise about $3.4 billion in debt and buy back
roughly 37 percent of its outstanding
shares.

Tim Hortons shares closed down 2.4 percent at C$55.75 on the
Toronto Stock Exchange on Thursday.

House, who is set to hand over the reins to Nestle
veteran Marc Caira on July 2, said Tim Hortons board has not yet
decided on the debt levels it is comfortable with, but that it
remains focused on maintaining an investment grade rating and it
would not go to the levels suggested by Highfields.

“I don’t think that we’d leverage up to that point, no, not
at all,” he said.

“(Canadian) companies don’t leverage up to the extent that a
lot of companies do in other parts of the world, that’s for
sure,” House added. “I think you’ve got to be very, very careful
in these unsettling times as to what you do from a leverage
point of view.”

Tim Hortons boasts that it sells eight of every 10 cups of
coffee sold in Canada, but analysts now question if the brand,
as much a Canadian symbol as hockey and the Maple Leaf flag, has
room for further growth at home.

With some 3,400 company-owned and franchised stores in
Canada, it faces a tough fight for market share as rivals such
as McDonald’s and Starbucks step up the
competition.

House said Tim Hortons is looking at people with financial
expertise as it seeks to fill two vacant spots on its board, as
has been demanded by Highfields. House said the board already
has financial expertise, but that the death of board member
Ronald Osborne in April has left a hole in that area.

“While we do not question the operating backgrounds of many
of the current board members, we feel the company could benefit
from more financial expertise,” Highfields said in a letter to
Tim Hortons’ board. “We believe it imperative to upgrade the
board with new members who could help develop and implement a
more appropriate capital allocation strategy.”

Earnings per share were in line with consensus, but analysts
said the details of the results were better than expected and
bode well for Bombardier’s outlook and share price, which rose
more than 5.4 percent to C$4.46 in early trading on the Toronto
Stock Exchange.

The new CSeries – Bombardier’s ticket into the larger
commercial jet market – is a single-aisle plane with seating for
up to 160 passengers.

It represents the Canadian company’s attempt to break into
the lower end of the lucrative 100-to-200-seat aircraft market
dominated by Boeing Co and Airbus.

Bombardier said on Thursday it had commitments for 388
CSeries aircraft as of March 31, including 145 firm orders from
nine customers in eight countries.

This update reflected a small order cancellation for three
CSeries planes due to the financial difficulties of an
undisclosed customer. National Bank Financial analyst Cameron
Doerksen called the change “immaterial” for the program.

The CSeries tests are progressing well, Chief Executive
Pierre Beaudoin said in a statement.

The aircraft claims a 15 percent cash operating cost
advantage and 20 percent fuel burn advantage over the Boeing and
Airbus models. Its airframe is lighter as well.

“We believe (CSeries progress) will continue to help to lift
sentiment – particularly if it is matched with new orders going
into the Paris Air Show next month,” analyst Walter Spracklin of
RBC Capital Markets said in a note to clients.

The Montreal-based company is under pressure to meet its
targets of 300 firm orders and 20 customers by mid-2014.

Bombardier, which is also the world’s biggest train
manufacturer, reported a 5 percent drop in first-quarter net
profit to $148 million, or 8 cents per share.

On an adjusted basis, net income rose 4 percent to $156
million, or 8 cents per share, in line with analysts’ average
estimate, according to Thomson Reuters I/B/E/S.

Total revenue rose to $4.3 billion.

Revenue in Bombardier’s aerospace unit, which makes
business, commercial and amphibious aircraft, jumped 53 percent
to $2.3 billion. Bombardier said backlog at the aerospace unit
was $32 billion as of March 31, compared with $32.9 billion as
of Dec. 31.

Bombardier delivered a total of 53 aircraft in the quarter,
up from 37 a year earlier.

Revenue in the transportation unit, which makes trains, rose
15 percent to $2.1 billion.

The company said it expected an increase in transportation
revenue over the course of the year, but did not provide a
specific forecast.

Bombardier said the order backlog in its transportation unit
was $31.0 billion as of March 31, compared with $32.0 billion as
at Dec. 31.

Free cash flow usage fell to $590 million from $695 million
a year earlier. Bombardier defines free cash flow usage as cash
flow from operating activities less net additions to property,
plant and equipment and intangible assets.

SNC, one of the world’s largest construction and engineering companies, said under the new strategy the Montreal-based firm would leverage its expertise in resources, exit investments at maturity, potentially sell non-core assets and reduce its equity stakes in large investments in the medium term.

Some of the company’s investments include overseas airports, rail, power, healthcare centers and highways.

“We believe the market will deem the strategic review and especially the eventual exit from mature concessions as a positive,” said Maxim Sytchev, an analyst with Dundee Securities, in a research note.

“The same goes to de-risking company’s profile by re-focusing on North and South America.”

SNC, which did not give a specific time frame for the strategy, is trying to move forward from a series of corruption and ethics scandals involving former top executives after it uncovered tens of millions of dollars in mysterious payments more than a year ago.

Most recently, it reached a confidential settlement with the World Bank that excludes it from bidding on bank-sponsored projects for up to 10 years.

Chief Executive Robert Card, who took over in October, said on Thursday that shareholders should not worry about a repeat of such events.

“Lessons have been learned,” he told investors at his first annual meeting as top executive. Some of the scandals occurred in business in the Middle East and Africa.

Shares fell 4.7 percent to C$41.39 early afternoon on the Toronto Stock Exchange as results fell short of expectations.

Net income was C$53.6 million ($53.17 million), or 35 Canadian cents per share, down from C$66.3 million, or 44 Canadian cents per share, a year earlier.

Two projects in mining and infrastructure and environment, including one in Panama, “spoiled” the quarter, Sytchev said.

Excluding Infrastructure Concession Investments, which is the company’s investment and financing unit, profit was C$18.6 million during the quarter, lower than the C$41.2 million reported for the same period a year ago.

Revenues rose by 6.3 percent to C$1.9 billion.

Results missed the 49 Canadian cents per share adjusted that analysts had been expecting, according to Thomson Reuters I/B/E/S.

SNC reiterated its 2013 outlook, saying it expected annual net income growth of between 10 percent and 15 percent.

($1 = $1.0082 Canadian)

(Editing by Jeffrey Hodgson and Kenneth Barry)

“I am deeply troubled. I am troubled that despite a clear commitment to the highest standards of ethical sourcing, our company can still be part of such an unspeakable tragedy,” Weston told reporters ahead of an annual meeting of Loblaw, the company behind the discount clothing brand, Joe Fresh.

More than 400 factory workers were killed after an illegally built building, Rana Plaza, which housed several garment factories, collapsed last week in Savar, a commercial suburb of Dhaka, Bangladesh.

Some of Loblaw’s Joe Fresh apparel was made in Rana Plaza.

Ahead of the building’s collapse, Walt Disney Co said in March it would no longer allow its branded products to be made in five countries, including Bangladesh, in an effort to ensure production in safe conditions.

Loblaw said it would remain in Bangladesh because well-run factories can help lift people out of poverty in developing countries. The company said it currently produces in 47 facilities in Bangladesh.

“I believe we can do more good and drive lasting change by staying in Bangladesh, and we are committed to doing that,” said Joe Mimran, the designer behind the popular Joe Fresh brand.

Loblaw promised to start a relief fund for victims and their families and said it expected other apparel manufacturers to contribute to the fund.

The company will add “building integrity” into its audits of contractor facilities and put Loblaw workers on the ground to ensure local building codes are adhered to, and that suitable conditions are maintained.

Loblaw said four senior executives would travel to Bangladesh next week to meet with government and labour officials.

PUSHED FOR MORE

Weston repeated his contrite message to shareholders at the meeting, even as company representatives made a concerted effort to keep reporters from speaking with investors, saying they didn’t want to be bothered.

Still, Brenda Mallouk, a university professor who owns some Loblaw shares, expressed disappointment at the company’s failure to address broader aspects of the outsourced apparel trade.

“Notice that they are not even talking about conditions under which they work. It’s just the building structure they’re talking about, not the fact that they’re all piled into one room. They’re not even talking about the hours,” she said.

“I’d like to know what’s going on behind the curtains. This is the right thing to say, but are they saying and not doing?”

Anti-poverty groups urged companies using cheap workers in developing countries to look beyond unsafe buildings.

“Canadian companies can start with building codes, but must also look at other human rights issues including wages, health and the exploitation of children,” said Dave Toycen, who heads World Vision Canada.

Weston, whose father was ranked as Canada’s second-richest man by Canadian Business magazine, said he was troubled by the “deafening silence” of other apparel retailers. He noted that as many as thirty international apparel brands had goods manufactured in the building.

Loblaw shares were up 4 percent at C$46.55 (29.7 pounds) in afternoon trading on the Toronto Stock Exchange.

(Editing by Jeffrey Hodgson, David Gregorio and Bernadette Baum)

“I am deeply troubled. I am troubled that despite a clear
commitment to the highest standards of ethical sourcing, our
company can still be part of such an unspeakable tragedy,”
executive chairman Galen Weston said in a press conference ahead
of the company’s annual meeting.

More than 400 factory workers were killed after an illegally
built building that housed a number of apparel factories
collapsed in Savar, a commercial suburb of Dhaka, Bangladesh.

The company, which had some of its “Joe Fresh” brand apparel
manufactured in Rana Plaza, said it would remain in Bangladesh
because well-run factories can help lift people out of poverty
in developing countries.

“I believe we can do more good and drive lasting change by
staying in Bangladesh, and we are committed to doing that,” said
Joe Mimran, the designer behind the brand.

Loblaw promised to start a relief fund that would provide
for victims and their families. It expected other apparel
manufacturers to contribute to the fund.

The company said building integrity was not previously
included in its audits, but that it would ensure new standards
addressed building codes and would be enforced.

Weston, whose father was ranked as Canada’s second richest
man by Canadian Business magazine, said he was troubled by the
“deafening silence” of other apparel retailers. He noted that as
many as thirty international apparel brands had goods
manufactured in the building.

Loblaw shares were up 3.7 percent at C$46.41 late morning on
the Toronto Stock Exchange.

Speaking at the company’s annual general meeting in Toronto,
Ontario Chief Executive Officer Hunter Harrison said the recent
accidents were the result of “internal flaws” and were
avoidable.

“You can always prevent them, but they were internal flaws
in both the rail and the wheel,” Harrison told reporters after
the meeting.

Repeating comments made when CP reported its quarterly
results last week, Harrison said CP’s safety record has improved
in terms of the severity of accidents – the railroad defines a
severe accident as a derailment on its main track network
involving three or more cars.

Harrison took over last year after a bitter proxy battle
between CP and New York activist shareholder William Ackman
resulted in both CEO Fred Green and Chairman John Cleghorn
stepping down.

“What a difference a year makes,” Harrison, an industry
veteran with a history of turning around struggling companies,
told shareholders. “We’re on the way to becoming again the best
railroad in North America.”

Last week, CP reported its best first-quarter result in its
132 year history. Shares, which were down 1.9 percent on
Wednesday, have climbed some 70 percent since Harrison took
charge last June.

Harrison said he expected to stay at the helm for another 2
1/2 to 3 1/2 years before handing the reins to chief operating
officer, Keith Creel, a decades-long protégé of Harrison’s.

But that is just the beginning, management promised on
Wednesday, outlining plans for an intense review of operations
starting next month that will scrutinize every part of the
railway, down to the schedule of each train.

Led by Chief Executive Hunter Harrison, an industry veteran
with a history of turning around struggling companies, and Chief
Operating Officer Keith Creel, the review is expected to
eliminate even more jobs and may uncover surplus land for sale.

Creel, who Harrison lured from Canadian National Railway to
be his successor, plans up to five review sessions in 2013 and
said results will start to show in the second half of the year.

CP is on pace for the best year-end financial and operating
performance in its 132-year history, said Harrison, who launched
an efficiency push last June that will eliminate at least 4,500
jobs through layoffs and attrition from a workforce of 19,500.
That number could swell to 6,000, he said.

Harrison took control of CP last year after a bruising proxy
battle led by the company’s biggest shareholder, Bill Ackman’s
Pershing Square. He has engineered big turnarounds at CN Railway
and Illinois Central Railroad.

While CP’s quarterly results mark a major improvement, the
stock declined on Wednesday after initial gains. Investors had
high expectations going into the quarter, based on railway
performance data that tracks shipments and operations.

Michael Smedley, chief investment officer at investment
management firm Morgan Meighen & Associates, said he expects
further improvements from the Calgary-based company.

“I would hope to see the stock move higher. I don’t think we
have any inclination in our accounts to sell the stock at this
time,” said Smedley, whose firm holds 130,000 CP shares.

But some analysts say the stock, up nearly 70 percent since
Harrison took charge last June, is now too expensive.

Trading at 20 times current earnings and 16 times next
year’s estimated earnings, the stock is running ahead of itself,
said National Bank Financial analyst Cameron Doerksen in a note
to clients.

“We also believe that earnings growth expectations for CP
are very high and already above management guidance,” he wrote.
“As a result, it will be challenging for the company to
materially beat forecasts in future quarters.”

CP shares were down nearly 1 percent at C$125.02 on the TSX
late Wednesday afternoon.

FORECASTS STAY PUT

Despite expectations by some analysts that CP would bolster
its 2013 outlook, executives said it was too early to make any
changes. Strong gains in such markets as crude-by-rail were
partly offset by weakness in others.

For 2013, earnings per share are forecast to grow more than
40 percent and revenue is seen growing in the high-single digit
percentage range.

CP, which hit an annualized run rate of 70,000 carloads of
crude-by-rail in January, said it could double that volume by
2015, one year earlier than it had previously forecast.

Management has a “clear line of sight” for volumes to double
and triple, Chief Marketing Officer Jane O’Hagan said on a
conference call with analysts and the media.

Crude shipments make up the fastest-growing product segment
for several major Canadian and U.S. Class 1 railroads as oil
output outpaces pipeline capacity. Railroads let producers take
advantage of a temporary oil price differential by moving crude
from inland fields to coastal refineries that pay higher prices.

TOUGH WINTER

Despite challenging winter weather, CP said net income rose
to C$217 million ($212 million), or C$1.24 per share, from C$142
million, or 82 Canadian cents per share, a year earlier.

Revenue was up 9 percent to C$1.5 billion.

That beat analysts’ expectations for a net profit of C$1.21
per share on revenue of C$1.49 billion, according to Thomson
Reuters I/B/E/S.

Total freight revenue rose 9 percent, led by a 25 percent
jump in industrial unit revenue, which was fueled by
crude-by-rail gains. Fertilizer freight revenue climbed 21
percent, driven by a rebounding potash market.

Auto revenue fell 8 percent and intermodal dropped 4
percent.

The railway’s operating ratio, measuring productivity by
tallying how much revenue is needed to maintain operations,
improved to 75.8 percent from 80.1 percent a year earlier. The
lower the number, the better.

CP, once an industry laggard with operating ratios in the 80
percent range, is targeting a mid-60 percent ratio by 2016.

CN on Tuesday forecast a sustainable mid- to low-60s
operating ratio, after reporting a lower profit due to a big hit
from winter weather.

Canada’s biggest railway operator, which saw its
crude-by-rail revenue jump 300 percent in the first quarter,
said that what had begun as smaller players building smaller
terminals has turned into something bigger.

“We have a number of larger-scale refineries or integrated
producers with which we are having dialog as we speak,” Chief
Executive Claude Mongeau said in a conference call on the firm’s
latest earnings, which took a big hit due to extreme winter
weather.

Crude shipments are now the fastest-growing product for
several big Canadian and U.S. Class 1 railroads after oil output
expanded more quickly than pipeline capacity.

Railroads allow producers to take advantage of a temporary
oil price differential by moving crude from inland oil fields to
coastal refineries that pay higher prices linked to Brent crude.
Pipelines are either full, or don’t reach these refineries.

CN, which announced it would be opening new terminals in the
U.S. Gulf and Western Canada in coming months, said that rail
transportation would complement existing pipelines.

“A number of people in the U.S. Gulf on our CN line are
investing into receiving facilities. More and more players are
looking at going the way of unit trains,” said CN’s chief
marketing officer, Jean-Jacques Ruest.

“So this is just still picking up momentum from one quarter
to another.”

Shipments of crude by rail in the United States have surged
to an estimated 340,000 bpd in 2012 from around 11,000 barrels
per day in 2007, according to data from the Association of
American Railroads.

If rail shipments in Canada are added, the volume could top
400,000 bpd, more than 4 percent of North American crude
production and equal to a new, large pipeline.