Profits dive for Australian supermarket giant Woolworths

Australian supermarket giant Woolworths Friday said its full-year net profit slumped 15 percent to Aus$1.82 billion (US$1.89 billion) due to its exit from the unprofitable Dick Smith electronics chain. Woolworths, Australia's largest food retailer which is in a battle for dominance for the supermarket sector with rival Coles, said sales revenue in the year to June 30 was Aus$55.1 billion, up from Aus$52.6 billion. Excluding losses from the Dick Smith operations, its net profit from continuing operations was Aus$2.18 billion, up 3.6 percent from the previous year. Chief executive Grant O'Brien said the underlying performance was pleasing but warned the company expected the retail sector to continue experiencing challenging trading conditions. "Despite some of the toughest retail conditions in recent times we have delivered value to customers through lower prices and value to shareholders through solid returns within guidance," he said. Woolworths' shares were down 1.53 percent at Aus$29.04 in mid-morning trade.