Supercor supermarkets did not register good results in 2008. (Photo: Stock File)
Supercor tanks profits for El Corte Ingles
(SPAIN, 1/6/2010)
The group of companies that conforms El Corte Ingles obtained 47 per cent less in profits in 2008 than the previous year, although its sales remained nearly intact.
The decline in dividends is due mainly to the poor results registered by two of its subsidiaries: the chain of Supercor supermarkets and the woman’s wear textile firm Sfera.
According to Isidoro Alvarez, head of El Corte Ingles, the present crisis, which affects Spain singularly, “is the deepest since the depression of '29, that of the most difficult diagnosis and that of the most unpredictable duration.”
Although in both cases the companies obtained a greater volume of sales, each registered losses during the last fiscal year: EUR 17 million for Supercor and EUR 27 million for Sfera.
This is due to the fact that these companies comprise two of the segments most affected by the fall in consumption that has forced the reduction of margins through pricing.
Nevertheless, other Group divisions, like supermarkets, insurance, telecommunications, optics or computers, were able to close the year with gains although the results of each business declined against the 2007 fiscal year.
The travel business is a segment where El Corte Ingles maintains its leadership and managed to increase its profits by more than 10 per cent.
In the international scope, the distribution giant also had setbacks. Meanwhile, both centres in Portugal managed to close the year with a profit of EUR 14 million, surpassing the results of even the previous year. The bankruptcy of the US department store The Harris Company, however, racked up losses worth EUR 35 million.
In spite of the crisis, El Corte Ingles closed fiscal year 2008 with a workforce of 97,389 employees, a number slightly superior to the previous year.
Against this panorama, Alvarez expressed satisfaction with 2008’s management, which obtained a business volume of over EUR 17 billion, transforming it into the second leading global chain of department stores by virtue of its sales.
The Group also did not have to resort to dismissals and managed to keep its workforce intact. In addition, it continued with its process of expansion, which involved a EUR 1.8 billion investment.
By Silvina Corniola [email protected] www.seafood.media
Information of the company:
Address:
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Hermosilla 112 - 3A Planta
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City:
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Madrid
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State/ZIP:
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(E-28009)
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Country:
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Spain
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Phone:
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+34 901 122 122
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Fax:
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+34 91 402 5821
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E-Mail:
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[email protected]
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More about:
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