Canadian Tire announces quarterly loss, layoffs

Canadian Tire Store SignCanadian Tire Corp. reported a Q3 net loss of $66.4 million or $1.19 per diluted share, compared to earnings of $184.9 million ($3.34 per share) a year earlier. That loss includes $328 million in costs related to CTC’s buyback from Scotiabank of a minority stake in its Canadian Tire Financial Services business. Revenues for the period rose 0.5 percent to $4.25 billion, while comp sales at the Canadian Tire banner dropped by 0.6 percent.

In announcing the results, the company also said it is eliminating three percent of its work force, with some cuts already happening this week. The redundancies affect the equivalent of 200 full-time corporate positions. It is also cancelling “the majority of current vacancies” in its ranks, which amounts to an additional three percent reduction in its human resources.