Canadian Tire profits climb on stronger earnings from retail, financial services

TORONTO – Canadian Tire Corp. (TSX:CTC) saw its profit climb more than 10 per cent to $145.5 million in the third quarter, due to strong earnings across its retail and financial sectors.

The national retailer says this amounted to $1.79 per diluted share, compared with earnings of $131.4 million, or $1.61 per diluted share, in the same period a year ago. Revenues for the quarter were $2.956 billion, up from $2.829 billion year-over-year.

It says sales increased across all its banners, including Canadian Tire; Mark’s Work Wearhouse; FGL Sports; along with gas sales. It also saw more people buying from its automotive, seasonal and kitchen categories and a strong performance from its Sport Check brand.

Canadian Tire says earnings before income taxes from its financial services sector jumped to $80 million in the third quarter, compared with $73.7 million from a year ago, as it saw more growth in its credit card area.

The Toronto-based chain also announced that it will be increasing its annual dividend by 25 per cent, to $1.75 from $1.40. It will be payable on March 1, 2014 to all shareholders of record on Jan. 31, 2014.

Canadian Tire has over 1,700 retail and gasoline outlets across the country including Canadian Tire stores as well as Mark’s Work Wearhouse and various corporate and franchised banners under FGL sports, including Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere.