Carrefour profit rises in 1H, affirms sales target

The company, second only to U.S.-based Wal-Mart Stores Inc. among the world's biggest retailers, indicated it plans to cut prices in its home market of France on about 300 products and reduce costs by about $150 million to keep its momentum going.

Net income rose to 751.8 million euros ($1.1 billion) in the six months through June from 729.1 million euros a year earlier. The company reported a 1.2 increase in profit from recurring operations to 750 million euros ($1.1 billion).

Sales increased 8 percent to 41.94 billion euros ($61.95 billion) from a year ago.

The company did not break out separate second-quarter figures.

"The group has robust fundamentals," Duran said. "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."

The company, which lowered its guidance in June, said it is sticking to its full-year forecast of a 7 percent sales growth at constant exchange rates.

Carrefour shares, which have fallen about 32 percent this year, gained 7.2 percent to 36.13 euros ($53) in Paris. Shares fell Thursday on fears that Carrefour would cut its full-year forecast.

Christopher Hogbin, an analyst at Sanford Bernstein, said the results were in line with his expectations. Carrefour's full-year target is "achievable but not without risks," he said.

Duran responded to media reports that Carrefour's board is seeking to replace him, saying he wouldn't be presenting the results if he didn't have its confidence.