Forbes.com: Dollar's A Drag On Dutch Ahold - by Parmy Olson
Dollar's A Drag On Dutch Ahold - by Parmy Olson
Royal Ahold has a new U.S. crisis: the weak dollar. The Dutch-based grocery retailer, which runs the Stop & Shop and Giant chains in the United States, reported a modest 1.4% rise in third-quarter profit Wednesday, a number that would have been much higher if not for the dollar's recent decline against the euro.nvestors are also worried that Ahold will be hit by the expected fall in consumer demand in the United States, and the outlook for weak economic growth could spur the Fed to reduce interest rates, making the dollar even less valuable against the euro. Ahold seems to be doing well in the Netherlands, where it has a dominant position through its Albert Heijn chain. But Citigroup analyst James Anstead warned it was having "mixed fortunes" in the U.S.
Labels: Ahold, EU, Netherlands
