Ahold president Cees van der Hoeven at Shareholders' Meeting: Ahold to make European acquisition only if it adds considerable value.ZAANDAM, The Netherlands--(BUSINESS WIRE)--May 11, 1999-- Royal Ahold (NYSE NYSE See: New York Stock Exchange : AHO), the international food retailer, wants to become the best and most successful supermarket operator in the world. This was one of the key messages Ahold president Cees van der Hoeven delivered to the Annual General Meeting of Stockholders in The Hague today. Van der Hoeven also announced that Ahold has made an excellent start to 1999. Consolidated sales in the first 16-week quarter of the year rose 27.2% to e9.3 billion (approximately $10.0 billion). Ahold announces its results over the first quarter on June 10, 1999. Stockholders approved the financial statements and the 1998 final dividend. The Ahold president confirmed that Ahold is right on track and expects earnings per share, excluding currency fluctuations, to rise by 15 to 20% in 1999 compared to the year before. European strategy In his speech to approximately 1,400 stockholders, Van der Hoeven said that Ahold would only pursue a large acquisition or merger in Europe if it "adds considerable value to our group of companies, if the prospective company's culture matches ours and if it leads to synergy elsewhere in the world. Such an acquisition should benefit all stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ." Mission and vision Van der Hoeven confirmed Ahold's intention to become the world's best and most successful supermarket company. "Let me assure you this is the goal upon which each and every one of us at Ahold is focused," he said. "Our vision is to create a network of superior supermarket companies in the world's important trade areas. Individually, these companies should be among the world's best. Jointly, however, they should generate substantial added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
Steady progress in all trade areas In his speech, the Ahold president expressed his satisfaction that the integration of Giant-Landover into Ahold's US operations is proceeding well ahead of schedule. He also commented on the acquisition of US supermarket company Pathmark in the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. . In The Netherlands, he added, "Albert Heijn Albert Heijn B.V. is a supermarket chain founded in 1887 in Oostzaan, the Netherlands. It is named after Albert Heijn senior, the founder of the first store which was a small grocery store in Oostzaan. knows how to retain its customers by keeping its stores in excellent shape, safeguarding high quality, offering plenty of choice, popular new products, appealing produce departments, friendly service and a great price-quality ratio." In Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Ahold's activities are developing apace. In Asia, Ahold is strengthening its current business base while keeping a close watch on costs ahead of a resurgence of the region's national economies. In Central and Southern Europe Southern Europe or sometimes Mediterranean Europe is a region of the European continent. There is no clear definition of the term which can vary depending on whether geographic, cultural, linguistic or historical factors are taken into account. , Ahold's stores are improving their performance, increasingly aligning their activities and accelerating the pace of knowledge transfer and the sharing of experience. 1999 outlook confirmed During the Shareholders' Meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. , the Ahold Corporate Executive Board confirmed its expectation announced in the 1998 Annual Report that all regions will deliver further sales increases in 1999 and that earnings will improve accordingly. "We anticipate that earnings per share, excluding currency fluctuations, will rise by 15 to 20% in 1999," Van der Hoeven said. Financial statements and final dividend approved Stockholders approved Ahold's financial statements and the company's 1998 final dividend proposal. Stockholders can also elect to receive the final dividend in the form of a payout of 2% in common shares. This dividend will be made payable on May 25, 1999. Stockholders also approved all other proposals on the agenda. Royal Ahold is a rapidly growing international food retailer with leading supermarket companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe, Latin America and Asia. The company operates more than 3,600 supermarkets, hypermarkets and specialty stores and had 1998 sales of $30.9 billion. In the United States Ahold is the leading supermarket operator along the eastern seaboard with more than 1,000 stores in five operating companies: Stop & Shop, Giant-Landover, Giant-Carlisle, Tops and BI-LO. Sales in the US totaled $16.2 billion in 1998. In March 1999 Ahold announced its intention to acquire Pathmark Stores, Inc. with sales of $3.7 billion and 132 supermarkets in the New York metropolitan area. In addition to its listing on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (NYSE: AHO), Ahold's shares are trading on the Amsterdam Exchanges and on the Swiss Exchange Swiss Exchange The major securities market of Switzerland. , and Ahold options are also traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (AMEX AMEX See: American Stock Exchange ). Ahold common shares may be accessed on the Reuter Equities 2000 Service under the symbol AHLN.AS and on Quotron under the symbol AHOLN.EU. Additional information is available on Ahold's home page: http://www.ahold.nl. Ahold press releases may contain 'forward-looking statements'. Actual results may differ from such statements as they may have been influenced by factors beyond the company's ability to control. |
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