Ahold reports 3Q growth, resumes pay of dividends

AMSTERDAM Ahold posted third quarter net profits on Wednesday and said it will resume dividend payments after a five-year break resulting from an accounting scandal.

The company said that quarterly net income rose to $316.3 million.

"On the net profit level, it was a positive surprise," said SNS Securities analyst Richard Withagen. He said the result was driven by lower-than-expected financial expenses, a higher-than-expected contribution from joint ventures and a lower tax rate.

Ahold is up 16.3% since the start of the year, though it has dropped from a 4.5 year high of 11.27 euros reached in October.

The company said it now expects to meet the upper end of its targeted 4% to 4.5% retail operating margin for this year as it accelerates an overhaul of its supermarkets in the United States.

Ahold said it will announce details of its 2007 dividend in March, together with its annual results. It has not paid a dividend since 2002 after an accounting scandal at its catering supplies unit U.S. Foodservice, which it sold off earlier this year.