STOCKS NEWS EUROPE-Carrefour rises after cost-saving plan

Shares in Carrefour (CARR.PA) rise as much as 4.2 percent after the world's second-biggest retailer unveils a plan to save 4.5 billion euros by 2012 to boost profits at the group.

Carrefour plans to lower operating costs, improve purchasing terms and reducing inventory times in a plan that will require a total capital expenditure of 500 million euros and entail one-off expenses of about 1 billion between 2009 and 2012.

"Analysts may be reluctant to work in the full EBIT benefit at this stage, but the cultural shift within Carrefour is self-evident and the potential efficiency gains are so material that we believe the presentation should continue to sustain hopes of a meaningful recovery," UBS analyst Matthew Taylor writes.

The company warns that the move will affect operating income in the short term and gives a full-year forecast of 2.7-2.8 billion euros, down from 3.3 billion last year.

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