CORRECTED: Carrefour profits up 11.3%

3rd March 2011, Comments 0 comments

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

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

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

The retailer said it took a charge of 321 million 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.

© 2011 AFP

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