Royal Ahold NV said yesterday that higher restructuring costs and lower gains from real estate transactions at its U.S. retail business led to the unit's 30 percent decline in second-quarter operating profit.
Operating profit at Ahold's U.S. unit fell to $250 million from $357 million, the company had reported Aug. 26. In a statement released after the close of trading yesterday, the company said it enumerated the items leading to that decline "to provide more information" for the financial community.
Ahold's U.S. retail unit, its biggest, includes Giant of Landover and Stop & Shop of Quincy, Mass. It is being hurt by "strong competition" from retailers including Wal-Mart and Shaw's Supermarkets Inc., the company said last month.
Fixed-asset impairments were $26 million more in the second quarter of 2004 than in the year-earlier period, the company, based in Zaandam, Netherlands, said yesterday. The company spent $15 million more on integrating businesses and had $16 million less income from real estate.
Chief executive Anders C. Moberg, is selling stores and shedding businesses as he works to reduce debt and borrowing costs. The company, recovering from an accounting scandal, aims to raise 2.5 billion euros by the end of next year in a bid to win back its investment-grade credit rating.