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. Last Updated: 07/27/2016

Russian Losses Halve Stockmann Profits

HELSINKI -- Finnish department store group Stockmann reported Thursday a fall in second-quarter profits, dented by losses in Russia, sending its shares down.

Stockmann's April-to-June pretax profit fell to 13.3 million euros ($18.3 million) from 27.9 million a year earlier.

"The costs of starting up new units and customs clearance problems in the first part of the year burdened earnings in Russia," Stockmann said. The group reported an operating loss of 4 million euros in Russia for the quarter.

Second-quarter sales were 294.2 million euros.

Stockmann repeated that it expected 2007 operating profit from continuing operations to be better this year than last, and it sees sales of more than 1.6 billion euros for 2007.

Stockmann said in a separate statement that its sales grew 11 percent in July to 113 million euros, with sales in department stores outside Finland rising 29 percent. Its bigger rival, Kesko, said its sales grew 12 percent in July.