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UPDATE 1-Delhaize keeps 2010 outlook as U.S. improves in Q3

Published 11/10/2010, 03:01 AM
Updated 11/10/2010, 03:04 AM

* Q3 op profit 249 million euros vs 238 million forecast

* Keeps 2010 outlook

* U.S. improves but environment remains challenging

(Adds details, background)

BRUSSELS, Nov 10 (Reuters) - Belgian supermarket group Delhaize kept its 2010 outlook as a declining sales trend in the United States eased and new store openings boosted revenue in Belgium in the third quarter.

Operating profit in the third quarter rose 1.2 percent, when adjusted for currency changes, to 249 million euros ($343.1 million), ahead of the 238 million euros forecast in a Reuters poll of nine analysts.

"The positive trend in the U.S. combined with strong performances in Belgium and Greece enables us to generate a healthy and stable operating profit margin," CEO Pierre-Olivier Beckers said. Delhaize, which makes about 70 percent of its sales in the United States, said that trading in the key U.S. market was aided by a strong performance at Hannaford and improving sales trends at Food Lion.

It added, however, that the economic and competitive environment remained challenging, especially in the southeast of the United States, where its Food Lion stores operate.

In October, U.S. peer Safeway said a drop in prices had moderated in the third quarter.. Delhaize said retail inflation was flat.

In its Belgian home market, where Delhaize is the largest player ahead of Colruyt and France's Carrefour according to recent data from ACNielsen, revenues increased due to new store openings, with comparable store sales flat.

Delhaize lowered its 2010 outlook after its second-quarter results in August and several analysts believed it would have to cut again. However, it did not do so.

"The like-for-like growth in Belgium is disappointing but the fact they repeat their earlier given outlook will be a relieve to the market," Hedy Talens, sales trader at AEK in Amsterdam said. (Reporting by Robert-Jan Bartunek; editing by Philip Blenkinsop)

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