Canada stocks Thursday closed down for the third time this week,
today losing near 110 points, led by energy stocks on lower
Among sectors, all but Mining and Telecom were lower. Of
ended the U.S. day session little changed. Benchmark iron ore hit
its lowest level since September 2012. According to Bloomberg, West
Texas Intermediate crude dropped with supplies at a seasonal record
high and as the euro slipped against the U.S. dollar. Brent settled
above US$108 for a second day, widening the premium to WTI.
In a pretty crazy, busy day for TSX and TSXV earnings and news,
retailer Canadian Tire Corporation, Limited (CTC.TO, CTC-A.TO) and
Bank of Nova Scotia (BNS.TO, BNS) stole the spotlight. CTC-A.TO
closed slightly lower after earlier hitting a new record high of
$110.18. BNS edged up and closer to a year high.
Canadian Tire said Thursday that diluted EPS attributable to
owners were $0.88 in the first quarter, down 2.2% over the prior
year due to the impact of approximately $5.0 million, or $0.06 per
share, for earnings attributable to the public unitholders of CT
REIT (non-controlling interests). Revenue rose 3.8% to $2.57
Canadian Tire also announced a 14.3% increase in dividend,
increased its share purchase commitment under NCIB for an
additional $100 million and said it intends to pursue early
retirement of a portion of its long-term debt.
But, perhaps, the biggest news of the day involving Canadian
Tire revolved around a strategic partnership that will see
Scotiabank (BNS.TO, BNS) acquire a 20% equity interest in Canadian
Tire's financial services business for $500 million in cash. The
agreement also includes a credit card funding facility whereby
Scotiabank will provide Canadian Tire's financial services business
with credit card receivable financing of up to $2.25 billion
satisfying the original objective of mitigating future funding
risk. In addition, the partnership includes the option for Canadian
Tire to sell an additional 29% of its financial services business
to Scotiabank within 10 years. The deal is subject to customary
closing conditions and regulatory approvals, and the transaction is
expected to close by September 30, 2014.
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