Ahold 2Q earnings rise

AP News
Posted: Aug 23, 2012 2:53 AM
Ahold 2Q earnings rise

AMSTERDAM (AP) — Royal Ahold NV says its profits rose 25 percent in the second quarter thanks to the weaker euro and a strong performance at its stores in the United States, where it owns the Giant and Stop & Shop chains.

Net profit was €248 million ($311 million), up from €199 million in the same period a year ago. Sales rose 12 percent to €7.69 billion. The sales increase would have been 3.9 percent with exchange rates at the same level in both years.

The company's U.S. operations in particular benefited from past restructuring efforts, though CEO Dick Boer warned the company is concerned about the impact of rising commodity costs in the second half.

In the U.S., sales rose 3.4 percent to $6 billion, and margins improved.