Onex Corporation
TSX : OCX

Onex Corporation

August 10, 2011 16:00 ET

Onex Reports Second-Quarter 2011 Results

Records $1.8 Billion of Net Earnings

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) -

All amounts in U.S. dollars unless otherwise stated

Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the second quarter and six months ended June 30, 2011 and an update on matters following quarter-end.

Highlights


--  Onex and its affiliates (the "Onex Group") completed the sales of Husky
    International and Emergency Medical Services Corporation ("EMSC"),
    resulting in multiples of invested capital of 3.0 and 7.8 times,
    respectively. Onex' portion of the net cash proceeds from these two
    transactions was approximately $925 million, including $49 million of
    carried interest.
--  The Onex Group agreed to invest $864 million in JELD-WEN, one of the
    world's largest residential door and window manufacturers, and acquire
    approximately a 58% ownership stake. Upon closing of the transaction,
    Onex' share of the investment will be approximately $295 million.
--  ONCAP completed three acquisitions in the second quarter. The equity
    investment in these transactions totalled $221 million, of which Onex'
    share was $98 million.
--  To date, ONCAP has raised more than 90% of total expected third-party
    capital commitments to its new Fund, ONCAP III.
--  Onex Credit Partners raised approximately $100 million of third-party
    capital through a treasury offering of OCP Credit Strategy Fund
    (TSX:OCS.UN).
--  Including realizations and distributions, the value of Onex' interest in
    Onex Partners' and ONCAP's private investments grew by 13% and 3%,
    respectively, in the first six months of 2011.
--  At June 30, Onex' total proprietary capital had increased by 22% year-
    over-year to $4.6 billion.
--  At June 30, Onex' unrealized carried interest was $101 million based on
    the public companies held at market value and on the quarter-end fair
    values of the private companies in the Onex Partners Funds.
--  For the seven months ending July 31, Onex had repurchased 377,376 shares
    for approximately C$13 million in 2011.
--  At July 31, Onex had no debt at the parent company and over $1.6 billion
    of cash and near-cash investments.

Onex is an investor and asset manager generating value from (i) growth in the Company's $4.6 billion of proprietary capital; (ii) management fees based on the $7.9 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds.

Investing

"We had a very busy second quarter with three acquisitions and two large realizations," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "The sales of Husky International and EMSC are both excellent examples of how we create value at our businesses and ultimately generate strong returns on invested capital."

In June, the Onex Group completed the sale of Husky International for $2.1 billion. Net cash proceeds from the sale totaled $1.7 billion, of which Onex' share was $583 million, including $17 million of carried interest. Upon completion of the transaction, the Onex Group has received total net proceeds of $1.8 billion, including a prior $98 million distribution, which results in a multiple of invested capital of 3.0 times and a 37% rate of return.

In May, the Onex Group received net cash proceeds of $878 million following the sale of its remaining shares of EMSC, of which Onex' share was $342 million, including $32 million of carried interest. Including previous sale transactions, this investment generated a multiple of invested capital of 7.8 times and a 47% rate of return.

During the quarter, the Onex Group also completed a secondary offering of Spirit AeroSystems shares and an initial public offering of TMS International. Together, these two offerings resulted in total net cash proceeds of $311 million to the Onex Group, of which Onex' share was $100 million, including $10 million of carried interest.

The mid-market private equity space has been quite active. ONCAP completed three acquisitions in the second quarter: Pinnacle Renewable Energy Group, a producer of wood pellets for markets around the world; Casino ABS, the largest casino operator in Alberta; and Hopkins Manufacturing, a manufacturer, marketer and distributor of automotive aftermarket products. The equity investment in these transactions totalled $221 million, of which Onex' share was $98 million.

"While corporate mergers and acquisitions activity has been slow to increase and credit markets have moderated, we're committed to finding great businesses to own and build for our shareholders and limited partners," said Mr. Schwartz.

Last week, Onex amended its previously announced agreement to invest in JELD-WEN, one of the world's largest residential door and window manufacturers. This proprietary opportunity is the result of Onex' focus and expertise in the building products sector and its industrial partnership with Philip Orsino, the former CEO of Masonite International. The Onex Group will now invest $864 million, of which Onex' share will initially be approximately $295 million, and acquire a 58% ownership stake in the company. Following the closing, which is anticipated to occur in the third quarter, Mr. Orsino will be appointed President of JELD-WEN and Onex will appoint four of eight members of the Board of Directors.

Although it is difficult to predict investment pace, Onex is well-positioned to respond to attractive investment opportunities. The Company continues to be in excellent financial condition, with over $1.6 billion in cash and near-cash investments at the end of July, no debt at the parent company and approximately $3.2 billion of uncalled committed capital for acquisitions through the Onex Partners and ONCAP Funds.

Over 27 years, Onex has established a strong culture that is based on long-held investing principles. The Company believes that long-term value is best created by focusing on enhancing the productivity and profitability of its businesses. By transforming under-valued businesses into industry leaders, Onex has produced impressive returns over its history. As of June 30, 2011, Onex has generated a 27-year gross IRR of 29% and an average multiple of 3.4 times invested capital from its private equity investing.

Onex continues to believe that its success is a result of the strong alignment of interests between Onex shareholders, our limited partners and the management team. At June 30, 2011, Onex' management team had almost $1.5 billion invested in Onex shares and in its operating companies.

Asset Management

Onex earns recurring asset management fees and/or carried interest on $7.9 billion of third-party capital. The current annualized rate of total management fees received is approximately $100 million, which typically offsets Onex' operating costs.

At June 30, 2011, there was approximately $20 million of unrealized carried interest allocable to Onex based on the public companies held at market value in the Onex Partners Funds. In addition, Onex has the potential to earn a further $81 million of carried interest on its private businesses in the Onex Partners Funds based on the fair values determined at June 30. Ultimately, the carried interest received will be determined upon the final returns of each Fund.

In the second quarter, ONCAP continued fundraising for ONCAP III, with a fund size of up to C$800 million in capital commitments. As with each of its Funds, Onex will be the largest limited partner in ONCAP III, representing approximately 35% of the capital commitments to the Fund, excluding commitments from management of Onex and ONCAP. To date, ONCAP has closed a total of C$484 million in third-party capital commitments to the Fund, and expects to complete this fundraising in the third quarter.

Recently, Onex Credit Partners, Onex' credit investing platform, raised approximately $100 million of third-party capital through a treasury offering of OCP Credit Strategy Fund (TSX:OCS.UN), including the exercise of the over-allotment option. Established in 2007, Onex Credit Partners now manages approximately $1.4 billion through several debt strategies.

Consolidated Second-Quarter Results

Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of our publicly traded and privately held operating companies and varying business cycles at its operating companies.

Effective January 1, 2011, Onex' financial statements are being prepared in accordance with International Financial Reporting Standards and are reported in U.S. dollars. Please see the Q2 Management's Discussion and Analysis and Notes to Unaudited Interim Consolidated Financial Statements for a review of the significant accounting policies under IFRS that impact Onex' financial statements.

On a consolidated basis for the second quarter, revenues increased 27% to $6.2 billion compared to the same period of the prior year. Onex reported consolidated net earnings of $1.8 billion compared to $174 million in the second quarter of 2010. In the second quarter, net earnings included $1.7 billion from discontinued operations relating to the sales of Husky International and EMSC. Under IFRS, the Company's net earnings now include the share of earnings attributable to both Onex, the parent company, as well as to its third-party limited partners in Onex' controlled operating companies. Upon a realization, Onex effectively recovers prior charges to earnings for the increase in fair value of the business allocated to the third party limited partners.

On a consolidated basis for the six months ended June 30, 2011, revenues increased 24% to $11.9 billion. Net earnings for the period were $1.6 billion compared to $166 million for the six months ended June 30, 2010 for reasons explained above. Cash flow from operations was $16 million compared to $365 million for the same period last year.

The Company paid a second-quarter dividend of C$0.0275 per Subordinate Voting Share on July 29, 2011 to shareholders of record on July 8, 2011.

Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the second quarter ended June 30, 2011 and 2010. The complete financial statements, including Management's Discussion and Analysis of the results, are posted on Onex' website, www.onex.com, and are also available on SEDAR at www.sedar.com. Also attached is the "How We Are Invested" schedule, which details Onex' $4.6 billion of proprietary capital and provides private company performance information.

Webcast

Onex management will host a conference call to review the Company's second-quarter 2011 results at 4:30 p.m. ET today. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.

About Onex

Onex is one of North America's oldest and most successful investment firms committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. In total, the company manages approximately $14 billion, of which $9 billion is third-party capital. As well, Onex invests its own capital directly and as a substantial limited partner in its Funds.

Onex' businesses have assets of $41 billion, generate annual revenues of $34 billion, and employ more than 210,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.


Onex

How We Are Invested
As at June 30, 2011
                                                                 Proprietary
                                                                     Capital
                                                              (US$ millions)
----------------------------------------------------------------------------
Private Equity
Onex Partners
 Private Companies                                          $       1,557(1)
 Public Companies                                                     285(2)
 Unrealized Carried Interest on Onex Partners Investments             101(3)
ONCAP                                                                 310(4)
Direct Investments
 Private Companies                                                    251(5)
 Public Companies                                                     156(2)
----------------------------------------------------------------------------
                                                                       2,660
----------------------------------------------------------------------------
Alternative Assets
Onex Real Estate Partners                                             147(6)
Onex Credit Partners                                                  103(7)
----------------------------------------------------------------------------
                                                                         250
----------------------------------------------------------------------------
Other Investments                                                         89
Cash and Near-Cash                                                  1,620(8)
Onex Corporation Debt                                                      -
----------------------------------------------------------------------------
                                                            $          4,619
----------------------------------------------------------------------------
(1) Based on the US$ fair value of the investments in Onex Partners'
    financial statements.
(2) Based on the June 30, 2011 market values.
(3) Represents Onex' share of the unrealized carried interest on public
    and private companies in the Onex Partners Funds.
(4) Based on the C$ fair value of the investments in ONCAP's financial
    statements and US$/C$ exchange rate of 0.9645.
(5) Historical US$ cost amounts.
(6) Based on carrying value of Onex Real Estate Partners' investments at
    June 30, 2011.
(7) Based on the June 30, 2011 market values. Excludes approximately $160
    million investment in Onex Credit Partners' unleveraged senior
    secured loan strategy fund, which is included with cash and
    near-cash items.
(8) Includes approximately $160 million invested in Onex Credit
    Partners' unleveraged senior secured loan strategy fund.



Significant Public Companies

                         Shares/Units
                           Subject to
                              Carried  Shares/Units    Closing  Market Value
                             Interest  Held by Onex  Price per      of Onex'
As at June 30, 2011        (millions)    (millions)   Share(1)    Investment
----------------------------------------------------------------------------
Onex Partners
  Skilled Healthcare
   Group                         10.7           3.5 $     9.46 $       33(3)
  Spirit AeroSystems             11.9        6.0(2) $    22.00        131(3)
  TMS International              13.2           9.3 $    13.05        121(3)
----------------------------------------------------------------------------
                                                                         285
----------------------------------------------------------------------------
Direct Investments
  Celestica                         -       17.8(2) $     8.76           156
----------------------------------------------------------------------------
                                                               $         441
----------------------------------------------------------------------------
(1) Closing price in whole dollars on June 30, 2011.
(2) Excludes shares held in connection with the Management Investment Plan.
(3) Excludes Onex' potential participation in the carried interest.



Significant Private Companies

                                                                     Cost of
                Onex                                                   Onex'
             and its                                              Investment
             Limited                                       Onex'    (Net of
As at June  Partners       LTM              Cumulative  Economic  Returns of
 30, 2011  Ownership EBITDA(1) Net Debt  Distributions Ownership    Capital)
----------------------------------------------------------------------------
Onex
 Partners
  Center for
   Diagnostic
   Imaging       81% $      39 $    107     $       67       19% $         8
  The
   Warranty
   Group         92%    113(2)      n/a            161       29%         154
  Hawker
   Beechcraft    49%        71    1,953           7(4)       19%      212(5)
  Carestream
   Health        95%       402    1,733            434       37%          90
  Allison
   Transmission  49%       649    3,283              -       15%         237
  RSI Home
   Products      50%       n/a      n/a            n/a       20%          78
  Tropicana
   Las Vegas     76%    n/a(3)       23              -       16%          60
  Tomkins        56%       774    2,921              -       14%         315
  ResCare        98%       121      364              -       20%          41
----------------------------------------------------------------------------
                                                                       1,195
----------------------------------------------------------------------------
Direct
 Investments
 Sitel
 Worldwide       68% $     124 $    652     $        -       68%         251
----------------------------------------------------------------------------
                                                                 $     1,446
----------------------------------------------------------------------------


(1) Includes adjustments that are consistent with private
    equity industry practice.  These adjustments may include
    non-cash costs of stock-based compensation and retention
    plans, transition and restructuring expenses including
    severance payments, the impact of derivative instruments
    that no longer qualify for hedge accounting, the impacts of
    purchase accounting and other similar amounts.
(2) Amount presented for The Warranty Group is adjusted net earnings
    rather than EBITDA and includes a one-time $6 million valuation
    allowance release in the first quarter of 2011.  Net earnings
    on a GAAP basis, including the impacts of purchase accounting,
    were $107 million and include a one-time $6 million valuation
    allowance release in the first quarter of 2011.
(3) A comprehensive redevelopment underway at Tropicana Las Vegas
    caused a disruption to its operations, resulting in negative
    LTM EBITDA that is not reflective of a fully operational hotel
    and casino.
(4) Represents interest received on the portion of Senior Notes
    held by Onex, Onex Partners II and Onex management.
(5) Onex' investment includes $31 million in face value of
    Senior Notes.



                            Onex Corporation
                       CONSOLIDATED BALANCE SHEETS

(Unaudited)                               As at          As at         As at
                                        June 30,      December       January
(in millions of U.S. dollar)               2011       31, 2010       1, 2010
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents           $     2,607    $     2,532   $     3,018
Short-term investments                      744            715           605
Accounts receivable                       3,084          3,430         2,928
Inventories                               4,056          4,004         3,204
Other current assets                      2,155          1,495         1,101
----------------------------------------------------------------------------
                                         12,646         12,176        10,856
Property, plant and equipment             3,772          4,056         3,366
Long-term investments                     5,214          4,864         3,448
Other non-current assets                  1,774          1,872         1,915
Intangible assets                         2,273          2,505         2,241
Goodwill                                  2,254          2,634         2,198
----------------------------------------------------------------------------
                                    $    27,933    $    28,107   $    24,024
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and accrued
 liabilities                        $     3,442    $     3,964   $     3,268
Current portion of provisions               186            257           255
Other current liabilities                   718          1,211           974
Current portion of long-term
 debt, without recourse to Onex             149            243           404
Current portion of obligations
 under finance leases, without
 recourse to Onex                            14             14            20
Current portion of warranty
 reserves and unearned premiums           1,381          1,314         1,342
Current portion of Limited
 Partners' Interests                      1,001              -             -
----------------------------------------------------------------------------
                                          6,891          7,003         6,263
Non-current portion of provisions           119            284           231
Long-term debt of operating
 companies, without recourse to
 Onex                                     6,361          6,346         5,284
Non-current portion of
 obligations under finance
 leases, without recourse to Onex            52             43            39
Non-current portion of warranty
 reserves and unearned premiums           1,810          1,780         1,935
Other non-current liabilities             2,002          1,921         1,670
Deferred income taxes                       865            938           810
Non-current portion of Limited
 Partners' Interests                      4,262          5,650         3,708
----------------------------------------------------------------------------
                                         22,362         23,965        19,940
Equity
Share capital                               371            373           381
Non-controlling interests                 3,522          3,638         3,329
Retained earnings and accumulated
 other comprehensive earnings             1,678            131           374
----------------------------------------------------------------------------
                                          5,571          4,142         4,084
----------------------------------------------------------------------------
                                    $    27,933    $    28,107   $    24,024
----------------------------------------------------------------------------
----------------------------------------------------------------------------


                              Onex Corporation
                    CONSOLIDATED STATEMENTS OF EARNINGS


(Unaudited)
(in millions of U.S. dollars
 except per share data)            Three months ended      Six months ended
                                          June 30               June 30
                                      2011       2010       2011       2010
----------------------------------------------------------------------------
Revenues                         $   6,229  $   4,894  $  11,876  $   9,544
Cost of sales (excluding
 amortization of property, plant
 and equipment, intangible
 assets and deferred charges)       (5,054)    (3,860)    (9,582)    (7,494)
Operating expenses                    (696)      (545)    (1,370)    (1,116)
Interest income                          6          2         17          8
Amortization of property, plant
 and equipment                        (106)       (97)      (212)      (199)
----------------------------------------------------------------------------
Earnings Before the Undernoted
 Items                                 379        394        729        743
Amortization of intangible
 assets and deferred charges           (73)       (73)      (145)      (143)
Interest expense of operating
 companies                            (112)       (84)      (239)      (171)
Unrealized increase in value of
 investments in associates at
 fair value, net                       230        224        400        239
Foreign exchange gains (loss)            -        (22)         9        (21)
Stock-based compensation
 recovery (expense)                    (68)         8       (156)       (71)
Other items                             (5)         5        (74)       (18)
Limited Partners' Interests           (220)      (212)      (615)      (307)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings (loss) before income
 taxes and discontinued
 operations                            131        240        (91)       251
Provision for income taxes             (26)       (97)       (73)      (143)
----------------------------------------------------------------------------
Earnings (loss) from continuing
 operations                            105        143       (164)       108
Earnings from discontinued
 operations                          1,656         31      1,721         58
----------------------------------------------------------------------------
Net Earnings for the Period      $   1,761  $     174  $   1,557  $     166
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Earnings (Loss) from Continuing
 Operations attributable to:
Equity holders of Onex
 Corporation                     $      18  $      86  $    (321) $     (26)
Non-controlling Interests               87         57        157        134
----------------------------------------------------------------------------
Earnings (Loss) from Continuing
 Operations for the Period       $     105  $     143  $    (164) $     108
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net Earnings (Loss) attributable
 to:
Equity holders of Onex
 Corporation                     $   1,666  $     100  $   1,367  $      (7)
Non-controlling Interests               95         74        190        173
----------------------------------------------------------------------------
Net Earnings for the Period      $   1,761  $     174  $   1,557  $     166
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net Earnings (Loss) per
 Subordinate Voting Share of
 Onex Corporation
Basic and Diluted:
 Continuing operations           $    0.15  $    0.71  $   (2.71) $   (0.22)
 Discontinued operations             13.94       0.12      14.27       0.16
----------------------------------------------------------------------------
Net Earnings (Loss) for the
 Period                          $   14.09  $    0.83  $   11.56  $   (0.06)
----------------------------------------------------------------------------



                              Onex Corporation
                   CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)                                        Six months ended June 30
(in millions of U.S. dollars)                             2011         2010
----------------------------------------------------------------------------
Operating Activities
Earnings (loss) for the period from continuing
 operations                                        $      (164) $       108
Adjustments to earnings (loss) from continuing
 operations:
  Provision for income taxes                                73          143
  Interest income                                          (17)          (8)
  Interest expense of operating companies                  239          171
----------------------------------------------------------------------------
Net earnings before interest and provision for
 income taxes                                              131          414
Cash taxes paid                                            (78)         (94)
Items not affecting cash and cash equivalents:
    Amortization of property, plant and equipment          212          199
    Amortization of intangible assets and deferred
     charges                                               145          143
    Amortization of deferred warranty costs                 30           41
    Unrealized increase in value of investments in
     associates at fair value, net                        (400)        (239)
    Stock-based compensation expense                       126           66
    Limited Partners' Interests                            615          307
    Change in provisions                                    35           24
    Other                                                  (21)         (27)
----------------------------------------------------------------------------
                                                           795          834
Changes in non-cash working capital items:
    Accounts receivable                                   (201)        (133)
    Inventories                                           (184)        (274)
    Other current assets                                    (6)         (51)
    Accounts payable, accrued liabilities and
     other current liabilities                            (507)        (160)
----------------------------------------------------------------------------
Decrease in cash and cash equivalents due to
 changes in working capital items                         (898)        (618)
Increase in other operating activities                       1           18
Increase (decrease) in warranty reserves and
 premiums                                                   18          (63)
Cash flows from operating activities (discontinued
 operations)                                               100          194
----------------------------------------------------------------------------
                                                            16          365
----------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt                                 447          916
Repayment of long-term debt                               (175)      (1,146)
Cash interest paid                                        (186)        (150)
Cash dividends paid                                         (7)          (6)
Repurchase of share capital of Onex Corporation            (12)         (35)
Repurchase of share capital of operating companies         (28)         (16)
Financing provided by Limited Partners                     156          103
Issuance of share capital by operating companies           148            9
Proceeds from sales of operating investments under
 continuing control                                        268            -
Distributions paid to non-controlling interests
 and Limited Partners                                   (1,172)         (28)
Change in restricted cash for distribution to
 Limited Partners                                         (735)           -
Decrease due to other financing activities                 (28)          (7)
Cash flows used for investing activities
 (discontinued operations)                                 (42)         (96)
----------------------------------------------------------------------------
                                                        (1,366)        (456)
----------------------------------------------------------------------------
Investing Activities
Acquisition of operating companies, net of cash
 and cash equivalents in acquired companies of $44
 (2010 - $23)                                             (268)         (53)
Purchase of property, plant and equipment                 (237)        (325)
Cash interest and dividends received                        10            4
Decrease due to other investing activities                 (88)         (23)
Cash flows from (used for) investing activities
 (discontinued operations)                               1,992          (80)
----------------------------------------------------------------------------
                                                         1,409         (477)
----------------------------------------------------------------------------
Increase (decrease) in Cash and Cash Equivalents
 for the Period                                             59         (568)
Increase (decrease) in cash and cash equivalents
 due to changes in foreign exchange rates                   16           (6)
Cash and cash equivalents, beginning of the period
 - continuing operations                                 2,053        2,582
Cash and cash equivalents, beginning of the period
 - discontinued operations                                 479          436
----------------------------------------------------------------------------
Cash and Cash Equivalents                                2,607        2,444
Cash and cash equivalents held by discontinued
 operations                                                  -          453
----------------------------------------------------------------------------
Cash and Cash Equivalents Held by Continuing
 Operations                                        $     2,607  $     1,991
----------------------------------------------------------------------------



                              Onex Corporation
                       INFORMATION BY INDUSTRY SEGMENT
                  FOR THE THREE MONTHS ENDED JUNE 30, 2011
----------------------------------------------------------------------------


----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Electronics
Three months ended    Manufacturing                               Financial
 June 30, 2011             Services Aerostructures   Healthcare    Services
----------------------------------------------------------------------------
Revenues            $         1,830  $       1,465  $     1,254  $      298
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                    (1,685)        (1,300)        (862)       (145)
Operating expenses              (59)           (43)        (231)       (115)
Interest income                   -              1            1           -

Amortization of
 property, plant
 and equipment                  (16)           (27)         (31)         (1)
----------------------------------------------------------------------------
Earnings Before the
 Undernoted Items                70             96          131          37
Amortization of
 intangible assets
 and deferred
 charges                         (3)            (8)         (43)         (5)
Interest expense of
 operating
 companies                       (1)           (22)         (52)         (1)
Unrealized increase
 in value of
 investments in
 associates at fair
 value, net                       -              -            -           -
Foreign exchange
 gains (loss)                    (1)            (1)           -           -
Stock-based
 compensation
 expense                        (10)            (3)          (2)          -
Other items                      (2)             1           (2)          3
Limited Partners'
 Interests                        -              -            -           -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                      53             63           32          34
Recovery of
 (provision for)
 income taxes                    (8)           (20)         (17)        (15)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                      45             43           15          19
Earnings from
 discontinued
 operations(b)                    -              -          570           -
----------------------------------------------------------------------------
Net earnings (loss) $            45  $          43  $       585  $       19
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $             3  $           3  $       571  $       18
----------------------------------------------------------------------------
Non-controlling
 interests                       42             40           14           1
----------------------------------------------------------------------------
Net earnings (loss) $            45  $          43  $       585  $       19
----------------------------------------------------------------------------




                              Onex Corporation
                      INFORMATION BY INDUSTRY SEGMENT
                  FOR THE THREE MONTHS ENDED JUNE 30, 2011
----------------------------------------------------------------------------


----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Customer
Three months ended          Care        Metal                  Consolidated
 June 30, 2011          Services     Services     Other(a)            Total
----------------------------------------------------------------------------
Revenues            $        350  $       671  $       361  $         6,229
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                   (229)        (624)        (209)          (5,054)
Operating expenses           (91)         (13)        (144)            (696)
Interest income                -            -            4                6

Amortization of
 property, plant
 and equipment                (7)         (12)         (12)            (106)
----------------------------------------------------------------------------
Earnings Before the
 Undernoted Items             23           22            -              379
Amortization of
 intangible assets
 and deferred
 charges                      (6)          (3)          (5)             (73)
Interest expense of
 operating companies         (21)          (8)          (7)            (112)
Unrealized increase
 in value of
 investments in
 associates at fair
 value, net                    -            -          230              230
Foreign exchange
 gains (loss)                  -            -            2                -
Stock-based
 compensation
 expense                       -           (2)         (51)             (68)
Other items                   (3)           -           (2)              (5)
Limited Partners'
 Interests                     -            -         (220)            (220)
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                   (7)           9          (53)             131
Recovery of
 (provision for)
 income taxes                 (3)          (6)          43              (26)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                  (10)           3          (10)             105
Earnings from
 discontinued
 operations(b)                 -            -        1,086            1,656
----------------------------------------------------------------------------
Net earnings (loss) $        (10) $         3  $     1,076  $         1,761
----------------------------------------------------------------------------
                    `
----------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $         (7) $         1  $     1,077  $         1,666
----------------------------------------------------------------------------
Non-controlling
 interests                    (3)           2           (1)              95
----------------------------------------------------------------------------
Net earnings (loss) $        (10) $         3  $     1,076  $         1,761
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, Husky
    (sold in June 2011), RSI, Tropicana Las Vegas, Tomkins,
    ONCAP II, ONCAP III, Onex Real Estate, Flushing Town Center
    and the parent company.
(b) Discontinued operations includes EMSC in the Healthcare
    segment (sold in May 2011) and Husky in the Other segment
    (sold in June 2011).



                              Onex Corporation
                       INFORMATION BY INDUSTRY SEGMENT
                  FOR THE THREE MONTHS ENDED JUNE 30, 2010

----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Electronics
Three months ended    Manufacturing                               Financial
 June 30, 2010             Services Aerostructures   Healthcare    Services
----------------------------------------------------------------------------

Revenues            $         1,586  $       1,046  $       818  $      287
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                    (1,456)          (853)        (515)       (143)
Operating expenses              (54)           (44)        (145)       (100)
Interest income                   -              -            -           -
Amortization of
 property, plant
 and equipment                  (18)           (22)         (26)         (1)
----------------------------------------------------------------------------
Earnings Before the
 Undernoted Items                58            127          132          43
Amortization of
 intangible assets
 and deferred
 charges                         (4)            (8)         (44)         (6)
Interest expense of
 operating companies             (1)           (14)         (34)         (1)
Unrealized increase
 (decrease) in
 value of
 investments in
 associates at fair
 value, net                       -              -          (14)          -
Foreign exchange
 gains (loss)                     2              2           (5)         (1)
Stock-based
 compensation
 recovery (expense)             (10)           (19)           -           -
Other items                      (8)             -           (7)         12
Limited Partners'
 Interests                        -              -            -           -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                      37             88           28          47
Provision for
 income taxes                   (24)           (26)         (18)        (18)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                      13             62           10          29
Earnings from
 discontinued
 operations(b)                    -              -           25           -
----------------------------------------------------------------------------
Net earnings (loss) $            13  $          62  $        35  $       29
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $             1  $          14  $        13  $       27
----------------------------------------------------------------------------
Non-controlling
 interests                       12             48           22           2
----------------------------------------------------------------------------
Net earnings (loss) $            13  $          62  $        35  $       29
----------------------------------------------------------------------------

                              Onex Corporation
                      INFORMATION BY INDUSTRY SEGMENT
                  FOR THE THREE MONTHS ENDED JUNE 30, 2010

----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Customer
Three months ended          Care        Metal                  Consolidated
 June 30, 2010          Services     Services     Other(a)            Total
----------------------------------------------------------------------------

Revenues            $        318  $       628  $       211  $         4,894
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                   (206)        (578)        (109)          (3,860)
Operating expenses           (90)         (16)         (96)            (545)
Interest income                -            -            2                2
Amortization of
 property, plant
 and equipment               (10)         (12)          (8)             (97)
----------------------------------------------------------------------------
Earnings Before the
 Undernoted Items             12           22            -              394
Amortization of
 intangible assets
 and deferred
 charges                      (7)          (3)          (1)             (73)
Interest expense of
 operating companies         (21)         (10)          (3)             (84)
Unrealized increase
 (decrease) in
 value of
 investments in
 associates at fair
 value, net                    -            -          238              224
Foreign exchange
 gains (loss)                 (8)           -          (12)             (22)
Stock-based
 compensation
 recovery (expense)            -            -           37                8
Other items                   (3)           -           11                5
Limited Partners'
 Interests                     -            -         (212)            (212)
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                  (27)           9           58  $           240
Provision for
 income taxes                 (5)          (2)          (4)             (97)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                  (32)           7           54              143
Earnings from
 discontinued
 operations(b)                 -            -            6               31
----------------------------------------------------------------------------
Net earnings (loss) $        (32) $         7  $        60  $           174
----------------------------------------------------------------------------


---------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $        (21) $         7  $        59  $           100
----------------------------------------------------------------------------
Non-controlling
 interests                   (11)           -            1               74
----------------------------------------------------------------------------
Net earnings (loss) $        (32) $         7  $        60  $           174
----------------------------------------------------------------------------

(a) Includes Allison Transmission, Hawker Beechcraft, Husky
    (sold in June 2011), RSI, Tropicana Las Vegas, ONCAP II,
     Onex Real Estate, Flushing Town Center and the parent company.
(b) Discontinued operations includes EMSC in the Healthcare segment
    (sold in May 2011) and Husky in the Other segment (sold in
    June 2011).



                              Onex Corporation
                       INFORMATION BY INDUSTRY SEGMENT
                   FOR THE SIX MONTHS ENDED JUNE 30, 2011


----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Electronics
Six months ended      Manufacturing                               Financial
 June 30, 2011             Services Aerostructures   Healthcare    Services
----------------------------------------------------------------------------
Revenues            $         3,630  $       2,515  $     2,454  $      597
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                    (3,349)        (2,190)      (1,696)       (286)
Operating expenses             (118)           (85)        (462)       (220)
Interest income                   -              1            2           -
Amortization of
 property, plant
 and equipment                  (31)           (53)         (63)         (2)
----------------------------------------------------------------------------
Earnings (Loss)
 Before the
 Undernoted Items               132            188          235          89
Amortization of
 intangible assets
 and deferred
 charges                         (7)           (15)         (85)         (9)
Interest expense of
 operating companies             (3)           (43)        (121)         (2)
Unrealized increase
 in value of
 investments in
 associates at fair
 value, net                       -              -            -           -
Foreign exchange
 gains (loss)                    (1)            (1)           2           -
Stock-based
 compensation
 expense                        (27)            (6)          (3)          -
Other items                      (8)             2          (11)          5
Limited Partners'
 Interests                        -              -            -           -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                      86            125           17          83
Recovery of
 (provision for)
 income taxes                   (11)           (36)         (26)        (27)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                      75             89           (9)         56
Earnings from
 discontinued
 operations(b)                    -              -          606           -
----------------------------------------------------------------------------
Net earnings (loss) $            75  $          89  $       597  $       56
----------------------------------------------------------------------------
Total assets        $         3,021  $       4,767  $     4,346  $    5,020
----------------------------------------------------------------------------
Long-term debt(c)   $            45  $       1,147  $     2,703  $      204
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $             6  $          14  $       552  $       51
----------------------------------------------------------------------------
Non-controlling
 interests                       69             75           45           5
----------------------------------------------------------------------------
Net earnings (loss) $            75  $          89  $       597  $       56
----------------------------------------------------------------------------

                              Onex Corporation
                      INFORMATION BY INDUSTRY SEGMENT
                   FOR THE SIX MONTHS ENDED JUNE 30, 2011


----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Customer
Six months ended            Care        Metal                  Consolidated
 June 30, 2011          Services     Services     Other(a)            Total
----------------------------------------------------------------------------
Revenues            $        693  $     1,335  $       652  $        11,876
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                   (453)      (1,236)        (372)          (9,582)
Operating expenses          (183)         (29)        (273)          (1,370)
Interest income                -            -           14               17
Amortization of
 property, plant
 and equipment               (15)         (24)         (24)            (212)
----------------------------------------------------------------------------
Earnings (Loss)
 Before the
 Undernoted Items             42           46           (3)             729
Amortization of
 intangible assets
 and deferred
 charges                     (12)          (6)         (11)            (145)
Interest expense of
 operating companies         (40)         (17)         (13)            (239)
Unrealized increase
 in value of
 investments in
 associates at fair
 value, net                    -            -          400              400
Foreign exchange
 gains (loss)                  3            -            6                9
Stock-based
 compensation
 expense                       -           (2)        (118)            (156)
Other items                  (10)           -          (52)             (74)
Limited Partners'
 Interests                     -            -         (615)            (615)
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                  (17)          21         (406)             (91)
Recovery of
 (provision for)
 income taxes                  -          (10)          37              (73)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                  (17)          11         (369)            (164)
Earnings from
 discontinued
 operations(b)                 -            -        1,115            1,721
----------------------------------------------------------------------------
Net earnings (loss) $        (17) $        11  $       746  $         1,557
----------------------------------------------------------------------------
Total assets        $        675  $     1,058  $     9,046  $        27,933
----------------------------------------------------------------------------
Long-term debt(c)   $        637  $       375  $     1,399  $         6,510
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $        (12) $         9  $       747  $         1,367
----------------------------------------------------------------------------
Non-controlling
 interests                    (5)           2           (1)             190
----------------------------------------------------------------------------
Net earnings (loss) $        (17) $        11  $       746  $         1,557
----------------------------------------------------------------------------

(a) Includes Allison Transmission, Hawker Beechcraft, Husky (sold
    in June 2011), RSI, Tropicana Las Vegas, Tomkins, ONCAP II,
    ONCAP III, Onex Real Estate, Flushing Town Center and the
    parent company.
(b) Discontinued operations includes EMSC in the Healthcare
    segment (sold in May 2011) and Husky in the Other segment
    (sold in June 2011).
(c) Long-term debt includes current portion, excludes finance
    leases and is net of deferred charges.



                              Onex Corporation
                       INFORMATION BY INDUSTRY SEGMENT
                   FOR THE SIX MONTHS ENDED JUNE 30, 2010

----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Electronics
Six months ended      Manufacturing                               Financial
 June 30, 2010             Services Aerostructures   Healthcare    Services
----------------------------------------------------------------------------
Revenues            $         3,104  $       2,089  $     1,570  $      598
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                    (2,847)        (1,716)        (993)       (285)
Operating expenses             (105)           (87)        (295)       (221)
Interest income                   -              -            1           -
Amortization of
 property, plant
 and equipment                  (37)           (44)         (58)         (2)
----------------------------------------------------------------------------
Earnings Before the
 Undernoted Items               115            242          225          90
Amortization of
 intangible assets
 and deferred
 charges                         (8)           (14)         (84)        (12)
Interest expense of
 operating companies            (14)           (28)         (61)         (2)
Unrealized increase
 (decrease) in
 value of
 investments in
 associates at fair
 value, net                       -              -           (7)          -
Foreign exchange
 gains (loss)                     2             (5)          (8)         (1)
Stock-based
 compensation
 expense                        (19)           (22)          (1)          -
Other items                     (14)             -          (10)         15
Limited Partners'
 Interests                        -              -            -           -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                      62            173           54          90
Provision for
 income taxes                   (20)           (46)         (25)        (35)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                      42            127           29          55
Earnings from
 discontinued
 operations(b)                    -              -           56           -
----------------------------------------------------------------------------
Net earnings (loss) $            42  $         127  $        85  $       55
----------------------------------------------------------------------------
Total assets at
 December 31,
 2010(c)(d)         $         3,014  $       4,975  $     6,162  $    4,918
----------------------------------------------------------------------------
Long-term debt at
 December 31,
 2010(d)(e)         $             -  $       1,145  $     2,996  $      205
----------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $             4  $          29  $        36  $       51
----------------------------------------------------------------------------
Non-controlling
 interests                       38             98           49           4
----------------------------------------------------------------------------
Net earnings (loss) $            42  $         127  $        85  $       55
----------------------------------------------------------------------------

                              Onex Corporation
                      INFORMATION BY INDUSTRY SEGMENT
                   FOR THE SIX MONTHS ENDED JUNE 30, 2010

----------------------------------------------------------------------------
(Unaudited)
(in millions of
 U.S. dollars)
                        Customer
Six months ended            Care        Metal                  Consolidated
 June 30, 2010          Services     Services     Other(a)            Total
----------------------------------------------------------------------------
Revenues            $        676  $     1,099  $       408  $         9,544
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                   (433)      (1,011)        (209)          (7,494)
Operating expenses          (188)         (28)        (192)          (1,116)
Interest income                -            -            7                8
Amortization of
 property, plant
 and equipment               (19)         (25)         (14)            (199)
----------------------------------------------------------------------------
Earnings Before the
 Undernoted Items             36           35            -              743
Amortization of
 intangible assets
 and deferred
 charges                     (14)          (6)          (5)            (143)
Interest expense of
 operating companies         (39)         (22)          (5)            (171)
Unrealized increase
 (decrease) in
 value of
 investments in
 associates at fair
 value, net                    -            -          246              239
Foreign exchange
 gains (loss)                 (6)           -           (3)             (21)
Stock-based
 compensation
 expense                       -            -          (29)             (71)
Other items                  (11)           -            2              (18)
Limited Partners'
 Interests                     -            -         (307)            (307)
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                  (34)           7         (101)             251
Provision for
 income taxes                 (8)          (3)          (6)            (143)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                  (42)           4         (107)             108
Earnings from
 discontinued
 operations(b)                 -            -            2               58
----------------------------------------------------------------------------
Net earnings (loss) $        (42) $         4  $      (105) $           166
----------------------------------------------------------------------------
Total assets at
 December 31,
 2010(c)(d)         $        675  $       862  $     7,501  $        28,107
----------------------------------------------------------------------------
Long-term debt at
 December 31,
 2010(d)(e)         $        624  $       404  $     1,215  $         6,589
----------------------------------------------------------------------------
Net earnings (loss)
 attributable to:
----------------------------------------------------------------------------
Equity holders of
 Onex Corporation   $        (28) $         5  $      (104) $            (7)
----------------------------------------------------------------------------
Non-controlling
 interests                   (14)          (1)          (1)             173
----------------------------------------------------------------------------
Net earnings (loss) $        (42) $         4  $      (105) $           166
----------------------------------------------------------------------------

(a) Includes Allison Transmission, Hawker Beechcraft, Husky
    (sold in June 2011), RSI, Tropicana Las Vegas, ONCAP II,
    Onex Real Estate, Flushing Town Center and the parent company.
(b) Discontinued operations includes EMSC in the Healthcare segment
    (sold in May 2011) and Husky in the Other segment (sold in
    June 2011).
(c) Total assets for the other segment at December 31, 2010 includes
    the assets of Tomkins, acquired in September 2010.
(d) Total assets and long-term debt include EMSC and Husky, which
    were sold in the second quarter of 2011.
(e) Long-term debt includes current portion, excludes finance
    leases and is net of deferred charges.

Contact Information

  • Onex Corporation
    Emma Thompson
    Vice President, Investor Relations
    416.362.7711
    www.onex.com