UPDATE 1-Canadian Tire to seek partner for credit card business

Thu Aug 8, 2013 9:15am EDT
 
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* Says to look for a partner for C$4.4 billion credit card portfolio

* Second-quarter earnings C$1.91 per share vs C$1.63 year-ago

* Revenue rises 1 pct

Aug 8 (Reuters) - Canadian Tire Corp, best known for its automotive and homeware stores, said it would seek a financial partner for its C$4.4 billion credit card portfolio to reduce funding risks.

The company did not provide details but said the proposed partnership would help it in its efforts to integrate its financial services business with its retail operations.

"As a result of that work, we are now well-positioned to explore an arrangement that would allow us to increase our financial flexibility while continuing to enjoy the substantial contributions of our financial services business," Chief Executive Stephen Wetmore said in a statement on Thursday.

The company said it expects any such partnership to have little impact on jobs and existing operations.

Canadian Tire's financial services business contributed 8.4 percent to its total revenue of C$3.02 billion in the quarter ended June.   Continued...