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April 23, 2019, 2:20 a.m. EDT

Ahold Delhaize: U.S. strikes hit 2019 earnings

By Carlo Martuscelli

Koninklijke Ahold Delhaize NV (AD.AE) said Tuesday that strikes at its U.S. supermarket chain have hit 2019 earnings, but that it has now reached an agreement with local unions.

Stop & Shop sees a $90 million to $110 million one-off impact on underlying operating profit, Ahold Delhaize said.

The Dutch retailing group said it expects underlying operating margins in 2019 to be a little below the levels reached in 2018. Its underlying earnings-per-share growth forecast has been lowered to a low single-digit percentage from high single digits, it added.

Ahold Delhaize said the strike lasted 11 days, having started on April 11. It affected 246 of Stop & Shop's 415 stores. The company has now struck a tentative agreement with five local unions which allowed employees to return to work on Monday.

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