Ahold to wipe off $30 billion in sales
AMSTERDAM -- Ahold, will erase $30 billion in reported sales when it corrects the way it accounts for joint ventures, the Financial Times reported today.
Citing people close to the investigation, the newspaper said Ahold's profit would not be affected, but the company plans to chop off about 15 percent of its sales over the past three years.
Ahold, which owns U.S. grocery chains Bi-Lo and Stop & Shop as well as Dutch market leader Albert Heijn, shocked financial markets last month as auditors Deloitte & Touche revealed an overstatement of at least $500 million in profit at its U.S. Foodservice business.
Accounting irregularities at Ahold are now the subject of investigations in the United States, the Netherlands and Uruguay. The company's CEO and CFO resigned and Ahold is conducting its own forensic inquiry into accounting.
Ahold has said it had been booking all the revenues from its joint ventures in Scandinavia, Portugal and Argentina but recorded just its share of profit.
The reduction of sales will boost Ahold's margins.
By 0825 GMT Ahold shares rose 5.3 percent along with the rest of the rebounding market.
Citing people close to the investigation, the newspaper said Ahold's profit would not be affected, but the company plans to chop off about 15 percent of its sales over the past three years.
Ahold, which owns U.S. grocery chains Bi-Lo and Stop & Shop as well as Dutch market leader Albert Heijn, shocked financial markets last month as auditors Deloitte & Touche revealed an overstatement of at least $500 million in profit at its U.S. Foodservice business.
Accounting irregularities at Ahold are now the subject of investigations in the United States, the Netherlands and Uruguay. The company's CEO and CFO resigned and Ahold is conducting its own forensic inquiry into accounting.
Ahold has said it had been booking all the revenues from its joint ventures in Scandinavia, Portugal and Argentina but recorded just its share of profit.
The reduction of sales will boost Ahold's margins.
By 0825 GMT Ahold shares rose 5.3 percent along with the rest of the rebounding market.