February 12, 2009 / 5:57 PM / 9 years ago

UPDATE 2-Canadian Tire profit drops, but tops expectations

* Adjusted EPS C$1.59

* Revenue C$3.2 billion

* Shares up 6.5 pct at C$41.22 (Adds details)

TORONTO, Feb 12 (Reuters) - Canadian Tire Corp (CTC.TO) (CTCa.TO) reported a 20 percent drop in quarterly profit on Thursday, hurt by a charge related to currency hedges.

However, the company’s shares were up 6 percent at C$41.02 on the Toronto Stock Exchange as the results came in better than analysts had expected.

Canadian Tire, Canada’s biggest auto parts and household goods retailer, said it earned C$101.2 million ($80.9 million), or C$1.24 a share, in the fourth quarter, compared with C$131.3 million, or C$1.61 a share, in the same period a year earlier.

The company said the most recent quarter’s results included a C$19.3 million after-tax expense related to interest rates, foreign exchange and equity-based compensation.

Excluding one-time items, the company said it earned C$1.59 a share.

Canadian Tire, which also operates gasoline bars and a financial services unit, said revenue was C$3.2 billion.

Analysts had expected earnings per share of C$1.52, before items, and revenue of C$2.64 billion.

Same store sales rose 7.3 percent.

The company said it would not provide financial forecasts for the remainder of the year due to “the unprecedented volatility in the Canadian economy and the difficulty in assessing the potential magnitude of the impact of the conditions” on its business.

However, it said it expects to complete about 40 expansion projects across the chain this year that will increase square footage by about 2 percent.

Total projected capital expenditures for 2009 will be in the range of C$380 million to $400 million, down from 2008 expenditures of about C$472 million.

$1=$1.24 Canadian Reporting by Scott Anderson; editing by Peter Galloway

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