Dutch retailer Ahold profits slip

25th August 2011, Comments 1 comment

Dutch retailer Ahold said on Thursday its second quarter net profit slipped 1.5 percent compared with a year earlier as earnings in the key North America markets were hit by the weak dollar.

In the April-June period, net profit was 199 million euros ($287 million), short of the 10-percent increase to 222.4 million euros expected by analysts surveyed by Dow Jones Newswires.

Sales fell 3.5 percent from a year earlier to 6.87 billion euros although the company said at constant exchange rates net sales increased by 4.7 percent.

"The dollar is weaker and since more than half of Ahold sales are in North America, this has a negative effect on earnings," Ahold spokesman Jochem van de Laarschot told AFP.

The retail group owns about 3,000 stores in North America and Europe and employs more than 210,000 people.

© 2011 AFP

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