John Lewis Partnership warns of pension hit to profits

LONDON Britain’s John Lewis Partnership, which runs department stores and upmarket British grocery chain Waitrose, said higher pension charges and a tough trading environment could lead to a fall in full-year profit of as much as 21 percent.

The group said on Thursday higher pension charges had led to a 26 percent fall in first half pretax profit before exceptional items to 96.7 million pounds ($148.64 million).

For the full-year it said pension charges would be 60 million pounds higher than last year, meaning pretax profit before bonus and exceptional items would now be between 270 and 320 million pounds, versus 341.6 million a year ago.

Despite a supermarket price war, tight cost controls and sales growth at Waitrose helped first half adjusted operating profit rise 0.6 percent. Sales also grew at John Lewis but operating profit fell 16.3 percent due to higher costs.

($1 = 0.6505 pounds)

(Reporting by Neil Maidment; editing by Sarah Young)