US Wal-Mart lowers capital expenditure forecast

17 June 2008 21:37  [Source: ICIS news]

HOUSTON (ICIS news)--Wal-Mart, a key end market for packaging materials and plastics, lowered its capital expenditure forecast for the current fiscal year to $13bn-14bn (€8bn-9bn) from its October forecast of $13.5bn-15.2bn, the company said on Tuesday.

The move “reflects Wal-Mart’s ability to grow more efficiently with reduced capital expenditures,” Wal-Mart executive vice president and chief financial officer Tom Schoewe said at the William Blair Growth Stock Conference in Chicago.

Wal-Mart’s fiscal year ends on 31 January 2009.

“We first announced our capital efficiency model and reduction in capital expenditures in June 2007,” Schoewe said. “We continue to be focused in the United States on moderating supercentre growth.”

Meanwhile, US electronics retailer Best Buy said its first-quarter profits dropped 7% to $179m. The results still beat Wall Street expectations, according to news media reports.

Shares of Wal-mart were trading at $58.61, down 70 cents, on the New York Stock Exchange. Shares of Best Buy were trading at $43.73, down $2.15.

($1 = €0.65)

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