Earnings hit by tough French trade

Europe's biggest home-improvements retailer Kingfisher said Tuesday that third-quarter sales and profits sank, hit by tough trade in France and adverse foreign exchange moves.
Total sales fell 3.6 percent to £2.8 billion ($4.4 billion, 3.5 billion euros) in the 13 weeks to November 1, compared with a year earlier, Kingfisher said in a results statement.
Turnover tumbled 9.3 percent in France during the quarter, but increased by 4.8 percent in the United Kingdom and Ireland.
Retail operating profit dropped 11.8 percent to £225 million in the reporting period, hit by a £13 million cost from translating overseas profits into sterling.
London-listed Kingfisher owns the B&Q home improvements chain in Britain as well as France's Castorama and Brico Depot stores.
"Trading conditions in our largest and most significant market, France, were particularly difficult and deteriorated across the quarter, impacted by the weak economic backdrop," said chief executive Ian Cheshire in the statement.
He added: "Overall, we remain cautious on the outlook, especially in France, and continue to focus on margin and cost initiatives to support our performance."
In morning deals, Kingfisher shares slid 2.30 percent to 296.8 pence on London's FTSE 100 index of major companies, which dipped 0.03 percent to 6,728.03 points.
Source: AFP