Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Circuit City to Buy Canada's InterTan
Mar 31, 2004
 Printable format
 Email this Article
 Search

Circuit City Stores Inc., the number 2 U.S. consumer electronics chain, said it plans to buy InterTan Inc. for U.S. $284 million in cash, expanding its battle against top rival Best Buy Co. Inc. into Canada.

Circuit City also reported higher-than-expected quarterly earnings on lower expenses and increased finance income. The retailer said it would buy online music seller MusicNow Inc. as well. Terms were not disclosed.

Circuit City, which has been revamping stores as it tries to claw back ground lost to Best Buy during the last 3 years, said it plans to expand sales of InterTan's private-label electronic products into the United States by the fall. Private-label goods typically carry higher profit margins than brand-name products.

Circuit City said it agreed to acquire InterTan for $14 a share in cash.

InterTan, based in Barrie, Ontario, Canada, operates about 980 stores in Canada under the names RadioShack, Rogers Plus and Battery Plus. InterTan's top rival, Future Shop, is owned by Best Buy. In its 2003 fiscal year ended June 30, InterTan had revenue of $403.1 million and net profit of $7.7 million

Circuit City operates about 600 stores in the United States.

Circuit City said it expects the purchase of InterTan will add to its earnings in the current year.

Circuit City, which recently closed 19 money-losing stores in the United States, said profit in the fiscal fourth-quarter ended Feb. 29 rose to $89.6 million, or $0.43 a share, from $70.9 million, or $0.34 a share, a year ago.

Excluding discontinued operations, quarterly profit was $0.46 a share. Analysts, on average, had expected earnings of $0.36 a share, according to Reuters Research.

Stacey Widlitz, an analyst at Fulcrum Global Partners, said she was surprised at the timing of the InterTan acquisition, noting that it comes as Circuit City is trying to fix its business in the United States. (Reuters)

"It's certainly a distraction to what they are doing. Yes, it will help provide them with access to private-label products," she said.

Back to Daily News

 

Daily News

...........................................................

Nov 21, 2014: Electrolux: new U.S. fridge efficiency requirements are more complex than anticipated

Nov 21, 2014: Whirlpool brand launches Perceptions of Care video

Nov 21, 2014: Hon Hai 3Q profit $1 billion

Nov 21, 2014: Environmental Product Declarations for aluminum product types released

Nov 20, 2014: Report: Drop in affluents' consumer confidence may foretell signal trouble ahead for some retailers

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows