Earnings indicate recession isn't as deep in Canada

If you’re getting tired of reading earnings reports that overflow with red ink, check out some of the public companies based in Canada.

You won’t find the double-digit earnings growth that many routinely reported before the recession, but at least you will find earnings, which is no small feat in this environment.

Retail powerhouse Sears Canada, for example, said its fourth-quarter earnings dropped 19.7%, but the company still made C$95.5 million in the quarter ended Jan. 31 and C$288.6 million for the fiscal year that ended on the same date.

Retailer Leon’s Furniture did even better, reporting an earnings increase of 7.4% for the quarter ended Dec. 31 and 8.4% for the full year.

And manufacturer Dorel Inds. said its home furnishings segment reported a mere 3.1% decline in sales for 2008 and a 4.9% drop in operating earnings. The company said sales at its Ameriwood ready-to-assemble furniture unit actually increased last year, but that was more than offset by a decline in sales at its Cosco Home & Office unit, which primarily makes metal folding furniture and futons.

Dorel benefitted from a stronger U.S. dollar, since the company sells a significant amount of furniture in the States. And all of the Canadian companies were thankful the recession hasn’t been quite as painful north of the border.

Dorel even has a positive outlook on its furniture business for 2009. (When is the last time you heard that?)

“Entering 2009, the Home Furnishings segment is the one most likely to see substantially improved earnings in the current environment,” the company said in its latest earnings announcement. “The steady to improved sales at retail has continued into the first two months of the year and management is confident about this segment’s profitability outlook.”

How refreshing.