Carrefour sales fall, reaffirms profit expectations
Paris — French retail giant Carrefour reported Thursday that sales in the second quarter dipped 0.3% to $26.5 billion, beating analysts’ expectations and prompting the retailer to issue earnings guidance to match 2012 expectations of $2.5 to $2.6 billion.
The world’s second largest retailer behind Wal-Mart has been hurt by sliding sales in Europe, as well as strategic missteps in an uncertain economy. But the upbeat report comes just a few weeks after newly appointed CEO Georges Plassat warned it would take three years to turn the company around.
In France, revenue fell 2.1% in the quarter, described as “unsatisfactory” by the company. In Asia, Carrefour’s revenue jumped 14% in the second quarter, bolstered by a favorable currency effect. In Latin America, sales rose 2.7%.
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S&P further lowers rating on J.C. Penney
New York — Standard & Poor’s Ratings Services is further lowering its credit rating on J.C. Penney Co., attributing the move to a continuing weak performance.
J.C. Penney’s corporate credit rating has been lowered to "B+" from "BB-." The junk rating is four notches below investment grade. The move marks the second downgrade from S&P since mid-May.
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The Pantry announces debt refinancing
Cary, N.C. — The Pantry said Thursday that it is pursuing debt refinancing consisting of up to $480 million of senior secured credit facilities and $250 million aggregate principal amount of senior notes.
The senior secured facilities are expected to consist of a revolving credit facility of up to $225 million to replace the company’s current revolving facility and a $255 million term loan. The company said it intends to use the proceeds from the new term loan and senior notes, together with available cash, to repay its outstanding term loans and senior subordinated notes, the aggregate outstanding amount of which is approximately $598 million.
The Pantry said it expects to complete the transactions during this fiscal year, which ends on Sept. 27.
Refinancing is a really good option. Unfortunately not to many average people know about this option or they simply for some unknown reason fail to trun to it. From one side refinancing is extending your credit period and therefore you overpay more than your original amount would have been. But on the other side it gives some time for reliefe. So it is a definitely good thing that the Pantry decided to go with debt refinancing consisting of up to $480 million of senior secured credit facilities and $250 million aggregate principal amount of senior notes. I hope it will help them a lot. Jason from: http://bit.ly/N1y0Iq