Carrefour worldwide profits up 11.3 per cent

AFP , Thursday 3 Mar 2011

Retailer with three Egyptian branches announces solid worldwide growth

French giant Carrefour, the world's second largest retailer, said Thursday its 2010 net profit rose 11.3 per cent to 382 million euros (US$530 m) despite taking a charge worth 1.13bn euros.

The company said that excluding exceptional items, earnings were up 31 per cent at 1.38bn euros, with operating profit up 9.3 per cent to 2.97bn euros.

Carrefour has three supermarkets in Egypt with two more under construction. A Cairo branch was looted during Egypt's uprising.

For 2011, Carrefour said it expected growth in both sales and operating profit.

The retailer said it took a charge of 321m euros on its Brazil business, where it has changed local management.

"In 2010, Carrefour posted solid sales and operating profit, despite considerable non-recurring charges, especially in Brazil," chief executive Lars Olofsson said.

Olofsson said there were still headwinds to face this year but the company would stick to its long-term objectives.

Carrefour shares were little changed on the Paris bourse after the results.

Meanwhile, credit ratings agency Standard and Poor's said Thursday it was downgrading Carrefour's long-term rating to BBB+ from A- after the group announced the sale of its Dia discount and Carrefour Property units.

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