Como se combate o populismo? "Com eleições", responde Fukuyama

[Jameson]

Ahold Q2 sales dip on weak dollar, tough pricing
Thu Aug 4, 2005 4:28 AM ET


By Wendel Broere

AMSTERDAM (Reuters) - Dutch retailer Ahold's second-quarter net sales were held back by a lower dollar, divestments and continued tough pricing in some of its markets, but came in broadly in line with market expectations.

Ahold, the world's fourth-largest food retailer and leading food services group, reported on Thursday that second-quarter net sales fell 0.9 percent to 10.4 billion euros ($12.81 billion).

Ahold, which generates 70 percent of sales in the United States, where it owns the Stop & Shop, Giant and Tops stores as well as the U.S. Foodservice catering supplies business, said that sales rose 0.6 percent excluding currency effects.

Analysts said sales growth in the Netherlands had been strong, but U.S. retail operations presented a mixed picture while U.S. Foodservice sales were lower than expected.

A Reuters poll of 14 analysts sales produced an average sales forecast of 10.4 billion euros, with estimates in a range of 10.1 billion to 10.6 billion euros. The figures was 10.5 billion euros the year before.

Ahold shares fell 0.6 percent to 7.26 euros by 0811 GMT. The stock has risen 27 percent since the start of the year and outperformed its European sector index by 12 percent.

"We keep our 'buy' rating unchanged as we believe that the company has further potential to positively surprise us as restructuring measures still start to bear fruit," SNS Securities said in a research note.


PRICING PRESSURE

In the United States, net sales at the Stop & Shop/Giant Landover activities rose 4 percent to $3.8 billion, but same-store sales at Giant-Landover fell 4.7 percent due to competitive pressure.

Net sales in the Giant-Carlisle/Tops arena fell 1.6 percent to $1.5 billion, mainly due to the divestment of 198 convenience stores in the second quarter. Without the spin-off, sales would have been at the same level as the year before, Ahold said.

Ahold this week announced its first acquisition -- of up to 67 supermarkets in the Czech Republic from Julius Meinl -- since its turnaround plan after financial troubles in the wake of a 970 million euro profit overstatement scandal that broke in February 2003.

Ahold Chief Executive Anders Moberg in July completed a program of asset sales to cut the group's debt level, exceeding the target figure of 2.5 billion euros.

Ahold ranks behind Wal-Mart Stores Inc, Carrefour and Tesco Plc as a food retailer, while Sysco Corp is larger in food services.

U.S. Foodservice, where much of the earnings overstatement took place, reported a 2.7 percent fall in sales to $4.3 billion, mainly due to the divestment of businesses.

In Europe, the flagship Albert Heijn stores had a 4.9 percent rise in second quarter sales to 1.5 billion euros, as it reaped the spoils of a price war it started in October 2003.

In Central Europe, however, sales were hurt by fierce price competition and customers focusing on discounted articles. Net sales rose 2 percent, but fell 5.6 percent excluding currency effects.

Full results for the second quarter are due on Sept. 7.

($1=.8121 Euro)