Carrefour first half net profit increases

PARIS: Carrefour SA, the world's second-largest retailer after Wal-Mart, said Friday it is maintaining its sales target for the full year after what CEO Jose Luis Duran called a ``strong performance'' in the first half. Net profit in the six months through June increased 1.2 percent to euro750 million ($1.1 billion) compared with euro741 million a year ago.

Sales increased 8 percent to euro41.94 billion ($61.95 billion). The company said July 26 it expects sales growth in the full year of 7 percent at constant exchange rates. ``The group has robust fundamentals, with a business model focused primarily on food, a balanced portfolio of formats, leading positions in the countries where it operates and a sound balance sheet,'' Duran said in a statement.

``In an uncertain and challenging environment, the implementation of the operational action plan we announced in July makes me confident that we will achieve our 2008 objectives,'' he said. In Carrefour's home market of France, which accounts for 40 percent of Carrefour's sales, revenue increased 1.2 percent in the first half. The company said it plans a large-scale program to cut prices on 300 products combined with strong promotional campaigns.