Kingfisher expects consumer demand to drop

Source: Exec Digital UK

Date :29/11/2007 17:37:00

Kingfisher, the owner of B&Q, said UK consumer demand was likely to weaken in the coming months following a slide in its third quarter earnings.

UK pre-tax profits fell 11.9 percent to £45.3 million offset by weaker demand for DIY products.

For the third quarter, total UK sales including gains from new stores opened, rose 3.5 percent. Group profits fell 1.9 percent to £171.7 million on like-for-like sales up 1.9 percent while total trading was up 6.4 percent at £2.4 billion.

Overall group profit fell 1.9 percent to £171.7 million in three months to 3 November.

World divisions

Elsewhere, Kingfisher's French operations, where it trades as Castorama and Brico Depot, reported sales were up 5.6 percent with like-for-like trading increasing by 2.3 percent, with profits rose 16.6 percent to £89.3 million.

Likewise, Poland performed strongly, helping to lift third-quarter sales in Kingfisher's European division by 18.6 percent in total, while like-for-like trading increased by 10.1 percent despite a poor performance in Italy and Germany.

The group is currently searching for a new chief executive after Gerry Murphy announced earlier this month he is stepping down.

November 29, 2007