Latest news with #capitalspending
CTV News
a day ago
- Business
- CTV News
Ottawa homeowners facing 5% increase in water bills a year over 10 years to fund infrastructure upgrades
Ottawa residents will be paying $5 more a month on their water bill over the next 10 years, as the city turns on the financial taps to fix up and expand the city's water, wastewater and stormwater infrastructure. A report for the finance and corporate services committee shows the city's water, wastewater and stormwater services need $4.8 billion in capital spending between 2026 and 2035. Of that amount, $4 billion will be spent to renew existing water and wastewater assets. According to the plan, the city will fund $3 billion of the infrastructure work through water, wastewater and stormwater revenues, with $1.7 billion from new debt. Staff told the finance and corporate services committee that the city will spend $450 million to $500 million each year over the next 10 years, with the capital assets expected to be in service for up to 100 years. 'The funding strategy addresses all the 'priority needs' in the first 10 years of the plan and leverages debt funding in order to advance these projects,' staff said Tuesday. Currently, the city's operating revenues provide capital funding of approximately $307 million a year. To fill a $169 million a year financial gap, the city will finance infrastructure upgrades to water, wastewater and stormwater services through rate increases and new debt. 'The recommended funding strategy aims to completely eliminate the funding gap for priority capital needs in every year of the ten-year planning period, by shifting a portion of the cash contributions annually to debt servicing to advance funding,' staff said. 'The impact to the ratepayer is minimized since the overall revenue requirement remains stable but the debt servicing ratio does increase, but within affordable limits.' Under the plan to cover operating and capital cost requirements, residential water bills will increase between 4.5 per cent and 5.6 per cent a year over the next 10 years, with a 4.5 per cent hike in 2026, a 4.9 per cent jump in 2027 and 5.6 per cent increases in 2031 and 2032. Staff say this is an estimated water rate increase, and the actual increase will be determined each year during the budget process. 'The estimated rate increases required to recover costs will differ by service with an overall estimated average of 5.0 per cent over the 10 years, which equates to $5.00 more per month for the average residential property,' the report says. The city will also use debt serving charges and reserve fund balances to fund the infrastructure renewal and expansion. The City of Ottawa says the conditions of its assets range from 'good' for drinking water services, to 'good to fair' for wastewater and stormwater services. According to the City of Ottawa's Drinking Water Services Asset Management Plan, five per cent of Ottawa's watermains for drinking water services are in poor condition, while seven per cent of water facilities are in poor condition. The City of Ottawa's water, wastewater and stormwater assets include 9,600 kilometres of water, wastewater and stormwater pipes, the Lemieux and Britannia water purification plans, the Robert O. Pickard Environment Centre, the city's sewage treatment plant, 86 pump stations, and over 6,600 culverts.
Yahoo
3 days ago
- Business
- Yahoo
Japan Q1 capital spending hits record but some export sectors weak
By Makiko Yamazaki TOKYO (Reuters) -Investment by Japanese companies in plants and equipment surged to a record in the first quarter led by industries focused on domestic demand, but key export sectors reduced spending in a sign that U.S. tariffs are undermining business confidence. Capital spending in January-March grew 6.4% to 18.8 trillion yen ($130 billion), according to finance ministry data on Monday. The previous record had been set in 2007. But business investment has been patchy, dipping 0.2% in the previous quarter to mark the first fall in nearly four years. On a seasonally adjusted basis, capital spending rose 1.6% during the quarter. "Capital expenditure has been driven by those sectors benefiting from strong domestic sales thanks to price hikes or inbound tourism such as hotel construction," said Takeshi Minami, chief economist at Norinchukin Research Institute. Spending for the food sector climbed 13% while the real estate sector increased spending by 11%. Tellingly, however, spending by the auto sector fell 1.4% and spending by makers of factory equipment dropped 4.1%. "After Trump's election victory in November, the tariff threat has turned some of those companies cautious about fresh investment," Minami said. The data is unlikely to have a significant impact on revised gross domestic product figures due on June 9, he added. Preliminary GDP data last month showed Japan's economy shrank by an annualised 0.7% in the first quarter, contracting for the first time in a year due to stagnant consumer spending and falling exports. Capital expenditure, a key gauge of domestic demand-led economic growth, has been generally strong in recent years as companies spent on information technology to offset a chronic labour crunch arising from the country's fast-ageing population. The brisk spending has been backed by rising corporate profits. Monday's data showed corporate sales rose 4.3% in the first quarter from a year earlier, and recurring profits increased 3.8%. U.S. tariffs, however, threaten car makers and other export-oriented Japanese firms which form the backbone of the economy. Trump imposed 10% tariffs on most imports into the United States and has also imposed 25% levies on cars, steel and aluminium. Japan also faces a 24% tariff rate starting in July unless it can negotiate a deal with Trump. According to an estimate by the Japan Research Institute, if all the threatened tariff measures against Japan were take effect, U.S.-bound exports will fall by up to 6 trillion yen a year, squeezing corporate profits by up to 25%. That would slow wage growth at manufacturers to 2-2.4% in 2026 from an increase of around 3% currently, the institute said in a report last week. That would in turn weaken the Bank of Japan's working assumption that sustained wage gains will spur domestic demand and justify raising interest rates further. ($1 = 143.68 yen)
CNA
3 days ago
- Business
- CNA
Japan Q1 capital spending hits record but some export sectors weak
TOKYO :Investment by Japanese companies in plants and equipment surged to a record in the first quarter led by industries focused on domestic demand, but key export sectors reduced spending in a sign that U.S. tariffs are undermining business confidence. Capital spending in January-March grew 6.4 per cent to 18.8 trillion yen ($130 billion), according to finance ministry data on Monday. The previous record had been set in 2007. But business investment has been patchy, dipping 0.2 per cent in the previous quarter to mark the first fall in nearly four years. On a seasonally adjusted basis, capital spending rose 1.6 per cent during the quarter. "Capital expenditure has been driven by those sectors benefiting from strong domestic sales thanks to price hikes or inbound tourism such as hotel construction," said Takeshi Minami, chief economist at Norinchukin Research Institute. Spending for the food sector climbed 13 per cent while the real estate sector increased spending by 11 per cent. Tellingly, however, spending by the auto sector fell 1.4 per cent and spending by makers of factory equipment dropped 4.1 per cent. "After Trump's election victory in November, the tariff threat has turned some of those companies cautious about fresh investment," Minami said. The data is unlikely to have a significant impact on revised gross domestic product figures due on June 9, he added. Preliminary GDP data last month showed Japan's economy shrank by an annualised 0.7 per cent in the first quarter, contracting for the first time in a year due to stagnant consumer spending and falling exports. Capital expenditure, a key gauge of domestic demand-led economic growth, has been generally strong in recent years as companies spent on information technology to offset a chronic labour crunch arising from the country's fast-ageing population. The brisk spending has been backed by rising corporate profits. Monday's data showed corporate sales rose 4.3 per cent in the first quarter from a year earlier, and recurring profits increased 3.8 per cent. U.S. tariffs, however, threaten car makers and other export-oriented Japanese firms which form the backbone of the economy. Trump imposed 10 per cent tariffs on most imports into the United States and has also imposed 25 per cent levies on cars, steel and aluminium. Japan also faces a 24 per cent tariff rate starting in July unless it can negotiate a deal with Trump. According to an estimate by the Japan Research Institute, if all the threatened tariff measures against Japan were take effect, U.S.-bound exports will fall by up to 6 trillion yen a year, squeezing corporate profits by up to 25 per cent. That would slow wage growth at manufacturers to 2-2.4 per cent in 2026 from an increase of around 3 per cent currently, the institute said in a report last week. That would in turn weaken the Bank of Japan's working assumption that sustained wage gains will spur domestic demand and justify raising interest rates further. ($1 = 143.68 yen)
CNA
3 days ago
- Business
- CNA
Japan Q1 corporate capex up 6.4%, points to solid domestic demand
TOKYO :Japanese corporate spending on plants and equipment rose 6.4 per cent year-on-year in the first quarter, Ministry of Finance data showed on Monday, showing a bright spot in the country's patchy economic recovery amid uncertainties over global demand. The solid expenditure data, which will be used to calculate revised gross domestic product figures due on June 9, shows at least one driver of domestic demand is solid, though U.S. President Donald Trump's tariffs could eventually deal a blow. Preliminary data last month showed Japan's economy shrank by an annualised 0.7 per cent in January-March, contracting for the first time in a year due to stagnant private consumption and falling exports. Capital spending in the quarter rebounded from the previous quarter's 0.2 per cent decline, which represented the first quarterly fall in nearly four years, according to Monday's finance ministry data. It grew 1.6 per cent on a seasonally adjusted quarterly basis. Monday's capex data also showed corporate sales rose 4.3 per cent in the first quarter from a year earlier, and recurring profits increased 3.8 per cent. Capital expenditure is one of the key gauges of domestic demand-led economic growth. Business spending remained generally solid in recent years due to strong appetite for investment in information technology to offset chronic labour crunch in the fast-ageing population.
Yahoo
6 days ago
- Business
- Yahoo
1 Industrials Stock to Target This Week and 2 to Avoid
Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 11.8% over the past six months. This drop was worse than the S&P 500's 2.2% loss. Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here is one resilient industrials stock at the top of our wish list and two we're steering clear of. Market Cap: $162 million Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States. Why Should You Sell ALTG? 5.8% annual revenue growth over the last two years was slower than its industrials peers Negative free cash flow raises questions about the return timeline for its investments Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Alta's stock price of $4.88 implies a valuation ratio of 0.9x forward EV-to-EBITDA. To fully understand why you should be careful with ALTG, check out our full research report (it's free). Market Cap: $894 million Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries. Why Should You Dump PRLB? Sales were flat over the last two years, indicating it's failed to expand this cycle Efficiency has decreased over the last five years as its operating margin fell by 7.3 percentage points Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term At $37.61 per share, Proto Labs trades at 25.5x forward P/E. Read our free research report to see why you should think twice about including PRLB in your portfolio, it's free. Market Cap: $82.04 billion Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation. Why Do We Love TDG? Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 14.9% over the past two years Incremental sales over the last two years have been highly profitable as its earnings per share increased by 30.8% annually, topping its revenue gains Robust free cash flow margin of 19.7% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute TransDigm is trading at $1,461 per share, or 36.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
