Woolworths Australia lowers profit expectation

Woolworths Australia lowered its earnings growth forecast for 2011 as it battles subdued consumer spending and the costs from the floods. It said net profit would rise between 5% and 8% this year, below an earlier forecast of between 8% and 11%.

Although there was a small upside in sales in January, Woolworths decided to take a conservative view of the full year.