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Canadian Tire plans to rein in spending plans for this year and next

Decision to reduce spending is the result of scaled-back estimates for real estate projects

Canadian Tire Corp. says it's reducing its spending plans for this year and next, mostly due to scaled-back estimates for real estate projects.

The Toronto-based retail company says this year's revised target for operating capital spending to be in a range of $475 million to $500 million—$150 million less than previously expected.

For 2017, its annual spending target is set at $400 million to $425 million.

Canadian Tire's total revenue for the third quarter was flat at $3.13 billion, with a decline in petroleum prices offsetting increases in non-fuel sales.

Total retail sales were up to $3.52 billion from $3.41 billion a year earlier.

The company's net income attributable to shareholders, however, fell to $176.4 million or $2.44 per share from $199.7 million or $2.62 per share.

Last year's third-quarter net income included a $24.5 million after-tax gain from the sale of property.

Canadian Tire says it will increase its dividend by 13 per cent next year, to 65 cents per share quarterly, starting with the March 1 payout to shareholders. The new dividend rate is up from 57.5 cents per share, to be paid on Dec. 1.

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