Canadian Tire profit dips on restructuring, acquisition costs

Thu Feb 21, 2013 9:47am EST
 

(Reuters) - Diversified retailer Canadian Tire Corp (CTCa.TO: Quote) reported a slightly lower fourth-quarter profit as a result of restructuring charges and costs related to its acquisition of FGL Sports in August 2011.

Net income fell to C$163.1 million ($160.7 million), or C$2.00 per share, in the second quarter, from C$166.3 million, or C$2.03 per share, a year earlier. It took a restructuring charge of C$19.6 million during the quarter.

Canadian Tire, one of Canada's biggest and best-known retailers, had announced a number of executive departures in the quarter to cut costs.

Revenue rose 1 percent to C$3.16 billion. Sales in its flagship Canadian Tire banner fell 2 percent to C$1.55 billion.

The company said adjusted fourth-quarter profit rose 2.8 percent on better performance in its credit card business.

Toronto-based Canadian Tire said it planned to integrate its retail business and financial services division next year by offering new credit products and in-store instant credit.

Same store sales at its namesake retail brand fell 1.1 percent due to the late onset of winter in Ontario and Quebec. Comparable sales at its Mark's brand, which sells work clothes and boots, increased 3.5 percent.

Revenue in FGL Sports rose 4.3 percent.

Shares of the Toronto-based company, which has a market value C$5.58 billion, were down 1 percent at C$67.55 in early Thursday trade on the Toronto Stock Exchange.   Continued...