Canadian Tire Corp. reported solid fourth quarter and full-year financial results, with consolidated retail sales up 2.4% in the quarter to $3.1 billion and rising 3.1% to $10.3 billion for the year.
Basic earnings per share were $2.22 for the quarter, up 88.8% over 2009; full-year basic EPS was $5.56, up 35.6% from 2009.
Operating EPS for the quarter was $1.51, up 17.8%, and $5.05 for the full year, up 18.5% versus 2009. The increase in earnings in the quarter was largely due to improved margins and lower interest costs. In the quarter, after tax earnings were negatively impacted by the change in the tax treatment for stock options which amounted to approximately 10 cents per share, the company said.
“I am very encouraged by our results,” said Stephen Wetmore, President and CEO. “Our earnings growth was positive, particularly in a tempered consumer market, and I am pleased with our progress in managing our business. We’ve advanced our strategic plan in 2010 and I believe we’re well-positioned as we enter 2011.”
Cash flow generation continues to be a long-term priority for the Company. For the year, cash generated from operating activities increased by approximately $572 million, mainly due to improvements in working capital, as well as improved operating performance. Capital expenditures for the year totaled $318 million, the company reported.
