("=Tesco 1H Pft +8.6%, Beating Views; Outlook Optimistic," at 0605 GMT, misstated the rise in U.K. sales from stores open at least a year, excluding fuel and value added tax, in the fifth paragraph. The correct version follows:)
By Lilly Vitorovich and Kathy Sandler
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Retailer Tesco PLC (TSCO.LN) Tuesday reported a better-than-expected 8.6% rise in first-half profit, as strong growth in the U.K. and Asia off set losses in the U.S., and said it is well placed for the global recovery.
Profit before tax and exceptional items - the key figure tracked by U.K. analysts and investors - rose 8.6% to GBP1.57 billion for the six months ended Aug.29 above market expectations of GBP1.48 billion, underpinned by the group's extensive U.K. grocery business and burgeoning operations in Asia. That compares to GPB1.45 billion over the same period a year earlier.
First-half net profit rose to GBP1.03 billion from GBP1.01 billion last year compared with Dow Jones consensus estimates of GBP1.04 billion.
Revenue, excluding value added tax rose 9.3% to GBP27.8 billion, up from GBP25.64 billion a year earlier and below forecasts of GBP28.13 billion.
In the U.K., sales from stores open at least a year, excluding fuel and value added tax, rose 3.1%. Tesco's strong hold on the U.K. grocery market is being chipped away by rivals, Asda Group Ltd. (AGP.YY), J Sainsbury PLC (SBRY.LN) and William Morrison Supermarkets PLC (MRW.LN).
Tesco operates around 4,300 stores in 14 markets, of which around 2,280 stores are in the U.K., according to its corporate Web site. The remainder are in Ireland, France, Czech Republic, Hungary, Poland, Slovakia, Turkey, China, Japan, Malaysia, South Korea, Thailand and the U.S.
As a sign of confidence, Tesco increased its interim dividend to 3.89, ahead of expectations of 3.78 pence a share from 3.57 pence a year earlier.
Tesco's shares closed at 391 pence Monday, valuing the company at GBP31.1 billion.
Company Web site: http://www.tesco.co.uk
-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; lilly.vitorovich@dowjones.com