Wal-Mart Profit Falls For First Time Since 1996

Aug. 15, 2006
Wal-Mart Stores Inc. reported Aug. 15 its first earnings drop in a decade owing to its withdrawal from Germany. The company said its second-quarter net profit slumped 26% to $2.08 billion, after it booked a charge of $863 million for the sale of its ...

Wal-Mart Stores Inc. reported Aug. 15 its first earnings drop in a decade owing to its withdrawal from Germany. The company said its second-quarter net profit slumped 26% to $2.08 billion, after it booked a charge of $863 million for the sale of its German stores to Metro AG.

Its sales rose 11.3% from the same quarter of 2005 to $84.52 billion.

The world's largest retailer said last month that it was pulling out of Germany after eight years and would sell its 85 hypermarkets to the Metro chain. Wal-Mart had struggled to establish itself in Germany, which was its third-largest market after the U.S. and Japan, but the announcement still came as a surprise.

The earnings decline was Wal-Mart's first since early 1996, which itself was the company's first profit fall since it started trading as a public company in 1970.

The retailer also announced in the past quarter that it was selling its 16 stores in South Korea, but it did not mention any material impact from this in its earnings statement.

Copyright Agence France-Presse, 2006

Popular Sponsored Recommendations

Service Lifecycle Management – Challenges and Opportunities

Feb. 18, 2024
Gain insights into the next wave of aftermarket optimization with Harvard Business Review’s whitepaper, in association with Tavant. Get an in-depth look at AI-powered Service ...

Executive Summary: Enterprise Resource Planning Manages Manufacturing Risk and Uncertainty in 2024

Jan. 4, 2024
Explore the future of manufacturing in 2024 by discovering how cloud-based ERP systems can help manufacturers thrive amidst supply chain disruptions and economic uncertainty.

S&OP Optimization: Data-driven Strategies to Achieve Sustainable Profitability

Feb. 6, 2024
Through collaborative S&OP, manufacturers can balance demand and supply effectively, optimize resources, and capitalize on emerging market opportunities. Learn how to maximize...

Building on Resilience

Dec. 18, 2023
To build the industry of tomorrow, 96% of the Fortune 100 manufacturing companies use Splunk to secure, sustain and manage operations.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!