CALGARY (CP) - Superior Plus Income Fund (TSX:SPF.UN) announced the sale of U.S.-based JW Aluminum Holding Company for US310 million cash on Wednesday as it revealed its net earnings fell 93 per cent to C$1.7 million during the third quarter.
The fund, which owns various businesses including Superior Propane and ERCO Worldwide, said its net earnings fell by C$22.3 million from a year earlier due to a non-cash impairment charge of C$56.3 million (net of tax) on the value of JW Aluminum.
The impairment charge was partially offset by the recovery of Canadian future income taxes of C$33.2 million recorded in connection with the fund's internal reorganization into a "trust over partnership" structure.
Superior Plus also announced it expects distributable cash flow will decline in 2007 as a result of lower results at ERCO and the sale of JWA, partially offset by lower interest costs and "stable to modestly improved" results from its other businesses.
In a separate statement, Superior Plus announced that has a definite agreement to sell JW Aluminum Holding Company for about C$350 million on a cash and debt-free basis to Wellspring Capital Management LLC.
The deal is expected to close in December 2006.
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