Carrefour reported a very bad year which should bring the shares down and make them even more of a value proposition. This is as expected as the new CEO steps in next month.
PARIS, March 8 (Reuters) - Carrefour, Europe's biggest retailer, slashed its dividend and capital spending, and put its flagship plan to revive its hypermarkets on hold, predicting another tough year of cash-strapped shoppers reining in spending.
The French group, posting a 19 percent drop in 2011 profits in the last set of results under outgoing boss Lars Olofsson, said on Thursday it was halting conversions to its new Carrefour Planet hypermarkets beyond 2012 because the results so far had fallen short of expectations.
This will allow the world's second-biggest retailer behind U.S. group Wal-Mart to focus on a more immediate plan to lower prices to lure back shoppers.
"In 2012, we will capitalise on our strengths while exercising strict cost and cash discipline to adjust to the environment in which we are operating," Chairman and Chief Executive Olofsson said in a statement.
Carrefour, which under Olofsson has failed to reverse years of underperformance in its main European markets, made an operating profit of 2.18 billion euros ($2.9 billion) in 2011.
The firm tied the decline from the previous year to "the tough environment we faced throughout the year, notably in Southern Europe, and the underperformance of French hypermarkets"
The performance was in line with analysts' expectations and the company's guidance, and underscored the magnitude of the task facing incoming Chief Executive Georges Plassat.
PARIS, March 8 (Reuters) - Carrefour, Europe's biggest retailer, slashed its dividend and capital spending, and put its flagship plan to revive its hypermarkets on hold, predicting another tough year of cash-strapped shoppers reining in spending.
The French group, posting a 19 percent drop in 2011 profits in the last set of results under outgoing boss Lars Olofsson, said on Thursday it was halting conversions to its new Carrefour Planet hypermarkets beyond 2012 because the results so far had fallen short of expectations.
This will allow the world's second-biggest retailer behind U.S. group Wal-Mart to focus on a more immediate plan to lower prices to lure back shoppers.
"In 2012, we will capitalise on our strengths while exercising strict cost and cash discipline to adjust to the environment in which we are operating," Chairman and Chief Executive Olofsson said in a statement.
Carrefour, which under Olofsson has failed to reverse years of underperformance in its main European markets, made an operating profit of 2.18 billion euros ($2.9 billion) in 2011.
The firm tied the decline from the previous year to "the tough environment we faced throughout the year, notably in Southern Europe, and the underperformance of French hypermarkets"
The performance was in line with analysts' expectations and the company's guidance, and underscored the magnitude of the task facing incoming Chief Executive Georges Plassat.
No comments:
Post a Comment
Please leave me any comments. I look forward to replying.