Pension costs dent retailer Ahold's Q4 profits

Markets February 28, 2013

Pension costs dent retailer Ahold's Q4 profits

AMSTERDAM (AP) — Royal Ahold NV, the Dutch operator of U.S. supermarket chains Stop & Shop and Giant, has reported a 41 percent fall in fourth quarter profits as a result of pension and restructuring charges.

Net profit was €158 million ($208 million), down from €270 million in the same period the previous year. The fall was due to one-time charges of €88 million to settle changes in the company's U.S. pension plan, and another €88 million hit to write down the value of the company's software systems.

The charges masked a 7.5 percent increase in revenue to €7.84 billion. CEO Dick Boer says the company is "cautious" in its outlook for 2013, but would increase its dividend by 10 percent to €0.44 per share, and buy back €500 million worth of shares.

Subjects
Locations
- Western Europe,
- Europe,
- Netherlands

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