Sector Update: Industrials; Heroux-Devtek Sells Shares, Air Canada's Move to Cut Costs Cheered by Analysts
Industrial stocks were generally higher in afternoon trading, with the S&P/TSX Industrials index up 1.1%.
Air Canada (AC-B.TO): +4.9%
Bombardier (BBD-B.TO): +1.9%
Heroux-Devtek (HRX.TO): -3.4%
Canadian Pacific Railway (CP.TO): +1.0%
WestJet (WJA.TO): +2.0%
In corporate news, Heroux-Devtek has signed an agreement with a syndicate of underwriters for a bought-deal offering of 3.2 million common shares for $11.75 each, raising gross proceeds of $37.1 million. The company also received a confirmation from its shareholder Caisse de depot et placement du Quebec to exercise its pre-emptive right to buy, on a private placement basis, 570,212 common shares. The net proceeds from the transactions will be used to pay debt under a credit facility.
Meanwhile, analysts have raised their outlook on Air Canada after the carrier's move to cut costs. CBC News, on its website, said the initiative includes the launch of low-cost Rouge subsidiary, addition of more seating on Boeing 777s, and the delivery of long-haul Boeing 787 Dreamliners.
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