TORONTO -- The board of Canadian Tire Corp. Ltd. has appointed Stephen G. Wetmore as the company's next president and CEO, effective the beginning of 2009. He will succeed Tom Gauld, who is retiring from that role at the end of this year, and who will continue as a member of the board.
Wetmore, 55, has led large, complex businesses in different industries, including telecommunications, information technology and transportation, said the company. He has been responsible for regional, national and international business operations. Most recently, he served as president and [image-nocss] CEO of Bell Aliant Regional Communications Income Fund, one of North America's largest regional telecommunications providers. He has led a number of other public companies and has served as an independent member of Canadian Tire's board since 2003.
Maureen Sabia, chairman of Canadian Tire's board, said, "This appointment reflects our board's ongoing focus on succession planning, and we are extremely pleased with the result. Stephen has a deep knowledge of Canadian Tire through his service on our board and its committees. With an enviable record of leading public companies, he has successfully created new and market-changing organizations, built brands, managed complex relationships and distribution channels and, perhaps most important of all, has shown a proven commitment to customer service and to productivity. In his new role, Stephen will continue the execution of our current strategy and enhance the company's relationships with its customers, shareholders, dealers and employees across Canada."
She added, "Tom Gauld has made a valuable contribution to Canadian Tire. He has driven our business strategy, helped to instill a culture of accountability and invested in initiatives for the company's long-term growth and success. He also worked with the board in identifying Stephen Wetmore as the right person to succeed him at this time. We are pleased that Tom has accepted the board's invitation to continue as a member of our board of directors following the leadership transition."
Gauld said, "This is about seizing opportunity when it comes knocking, and it's about getting the right person for the long term. Stephen announced late in the summer of 2008 that he would be leaving Bell Aliant. I had intended to continue in my present role a little longer; however, the opportunity to recruit someone of Stephen's stature to lead the company beyond that timeframe led me and the board to revisit our succession timetable. I am delighted with the outcome."
Canadian Tire also has released its third-quarter results. Despite challenging economic conditions, the company reported a 7.3% increase in retail sales and a 6.3% increase in net earnings compared to the same period in 2007.
Higher fuel prices drove a 4.6% decrease in gasoline sales volumes. Petroleum's gross operating revenue totaled $519.3 million during the quarter, a 22.5% increase over the $424 million in the comparable 2007 period, reflecting a significant increase in pump prices during the quarter and a 10.7% increase in convenience store sales.
Petroleum recorded pre-tax earnings of $7.5 million compared to $7.9 million a year ago, based on continued stable margins and good expense management. While adjusted earnings were down 12.2% from $8.6 million this time last year, compared to historical norms, this represents a strong quarterly performance.
Petroleum opened two new gas stations and rebranded two stations during the quarter. The business also refurbished seven stations and rebuilt one existing location during the period.
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Toronto-based Canadian Tire operates more than 1,180 general merchandise and apparel retail stores and gas stations in an inter-related network of businesses engaged in retail, financial services and petroleum. Canadian Tire Retail, a general merchandise retailer with 473 stores operated by dealers across Canada offers a unique mix of products and services through three specialty categories in which the organization is the market leader: automotive, sports and leisure and home products. www.canadiantire.ca offers Canadians the opportunity to shop online. PartSource is an automotive parts specialty chain with 82 stores. Canadian Tire Petroleum is an independent retailers of gasoline, operating 269 gas bars, 262 convenience stores and kiosks and 74 car washes. Mark's Work Wearhouse is an apparel retailer operating 364 stores in Canada. Canadian Tire Financial Services has issued more than five million Canadian Tire MasterCard credit cards and also markets related financial products and services for retail and petroleum customers.
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