Carrefour profits hit by downturn

Carrefour has supermarkets in 30 countries, including China

Profits at the world's second-biggest retailer, Carrefour, fell 45% to 1.27bn euros ($1.6bn; £1.17bn) last year after it was hit by the economic slowdown.

Overall, sales rose 5.9% to 87bn euros, but they rose barely 1% in France, its home market, where it was forced to cut prices amid the downturn.

"We expect the situation to remain difficult in 2009," the firm said.

The company said it planned to cut costs by 500m euros and would increase the number of price promotions.

Carrefour chief executive Lars Olofsson: "In a trading environment that remains challenging, we will focus on boosting our sales dynamics while improving our organisation and reducing our costs."

France accounts for about 40% of Carrefour's sales.

The supermarket group employs about 490,000 people in more than 15,000 stores and 30 countries.