Export recovery gathers strength as companies increase use of EDC programs by 22 percent

OTTAWA, Feb. 27, 2012 /CNW/ - "Canadian companies grew their exports by 10 per cent in 2011 in a challenging global economic environment. Contributing to that figure was the international business facilitated by EDC, which rose by 22 percent as 7787 Canadian companies tapped our programs," said Stephen Poloz, President and CEO of EDC.

The value of Canadian exports and investments into emerging markets facilitated by EDC grew by 26 per cent in 2011, according to its year-end results released today.

Emerging markets now account for a record 30 per cent of trade that EDC facilitates for Canadian companies and their foreign buyers. Of note, EDC customers undertook $8.5 billion in business in China, $2.8 billion in Brazil, $2.5 billion in Mexico, $2.4 billion in India and $1.9 billion in Turkey.

"Adding trade growth in emerging markets to our strong trade with the US is critical if we are to build Canada's economic resilience and realize our potential as a trading nation," Mr. Poloz added.

The biggest emerging market growth came from trade with the greater Asian markets. Exports and investments by Canadian companies to these markets that were facilitated by EDC grew by nearly 60 per cent in 2011, accounting for 24 per cent of the total trade facilitated by EDC.

"Last year, EDC helped Canadian companies make more investments abroad than ever before, 40 per cent more transactions over last year alone," said Mr. Poloz. "EDC customers used a combination of direct loans and insurance coverage to help them make these investments, which help them lower their costs, access large international supply chains and remain globally competitive."

Key Performance and Financial Results

  • EDC's customers signed 937 financing transactions to a value of $14.6 billion, representing 9 per cent growth over 2010. More than 85 per cent of these transactions were undertaken by EDC in partnership with private sector financial institutions.

  • 6,259 Canadian companies insured more than $88 billion in export contracts with EDC, covering nearly 74,080 buyers in more than 195 foreign markets. This volume represents 24 per cent growth for EDC's entire insurance program in 2011. EDC earned $234 million in premiums from all of its insurance programs.

  • Under EDC's temporary domestic powers, EDC provided $3.1 billion in commercial solutions in Canada for 285 Canadian exporting companies in 2011; including $2.5 billion in direct financing for 96 companies, more than $454 million in domestic bonding and $146 million in domestic credit insurance. This brings the total amount that EDC has provided in Canada to $9 billion since March 2009, facilitating the global business needs of 569 Canadian companies.

  • EDC finished the year with a net income of $645 million, returning to a more normal profitability level compared to the $1.475 billion net income reported in 2010. The reduction in net income was the result of recording provisions and claims-related expenses totaling $372 million in 2011, as opposed to a $631 million provision reversal and claims-related expenses of just $1 million in 2010.

EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 7,700 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis.

SOURCE Export Development Canada

For further information:

Media contacts:
Phil Taylor
Export Development Canada
Tel: (613) 598-2904
Blackberry:  ptaylor@edc.ca


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