Company News

Carrefour’s Profits Tumble

CEO calls 2010 "challenging."

Only a few days after Wal-Mart posted less-than-expected results for 2009, Carrefour SA said its net income tumbled 74.2% as the world’s No. 2 retailer (after Wal-Mart) absorbed more than 1 billion euros in non-recurring impairment and restructuring charges.

Net income in the 12 months ended Dec. 31 came in at 327 million euros, or $456 million, versus 1.27 billion euros, or $1.77 billion, in the year-ago period. Dollar figures are converted at average exchange rates.

Full-year sales slid 1.2% to 85.96 billion euros, or $119.89 billion, from 86.97 billion, or $121.29 billion, with revenues climbing in Latin America and Asia but sputtering in Europe, including France.

The charges, totaling 1.07 billion euros, or $1.49 billion, reflected store closures in Italy and other restructuring charges as the company aimed to kick-start business in a difficult market.

Lars Olofsson, chief executive officer, said 2010 is “likely to remain challenging” as the retailer strives to improve its price image and operational efficiencies.

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