Canadian Tire profit dips on restructuring, acquisition costs

Thu Feb 21, 2013 9:43am EST
 
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* Fourth-qtr earnings C$2.00/share vs C$2.03 last year

* Total revenue up 1 pct

* Same-store sales at Canadian Tire Retail falls 1.1 pct

Feb 21 (Reuters) - Diversified retailer Canadian Tire Corp 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.   Continued...