TORONTO -- GMP Capital Inc. (TSX:GMP) dipped into the red in the first quarter, primarily due to weaker performance in its capital markets segment, the diversified financial services firm said Friday.
GMP shares were down 34 cents, or 5.72 per cent, to $5.60 in trading on the Toronto Stock Exchange.
GMP said its net loss attributable to common shareholders was $2.3 million or four cents per diluted share in the quarter, compared with net income of $22.5 million or 29 cents per diluted share in the same 2011 period.
Revenue was $66.1 million, down 43 per cent from $115.3 million in the same year-earlier period.
GMP said besides an unfavourable market environment, results reflected $4.5 million in restructuring charges from senior management changes and other initiatives.
"Adverse market conditions continue to affect the level of business activity, particularly in the Canadian mid-market resources sector, resulting in disappointing financial results this quarter," said CEO Harris Fricker.
"Investment banking and trading activity were the areas most impacted by the ongoing challenging market environment. Wealth Management's returns reflect lower results at Richardson GMP which were also impacted by the weaker capital markets activity," he added.
-- The Canadian Press