ASDA owner Wal-Mart yesterday reported record first-half profits but warned higher fuel prices were taking their toll on customers.

The US retailer announced that net sales rose 9.8 per cent to £81.7bn in the six months to July 31, while net profits climbed 9.3 per cent to £2.9bn.

President and chief executive Lee Scott said results were disappointing earlier in the group's second quarter, but that last month was stronger than expected.

He said: "Wal-Mart stores did miss their plan as our customer continues to be impacted by higher gas prices and it is difficult to improve our expense leverage in the current environment."

His comments follow sharp rises in oil prices in recent months, with the cost of a barrel of crude oil reaching a new record above the $67 mark last week.

Wal-Mart gave no breakdown of supermarket chain Asda's performance, but said its international operations increased operating profits by 8.1 per cent to £770m in the first half.

The company also has operations in Argentina, Brazil, Canada, China, Germany, Japan, Mexico, Puerto Rico and South Korea.

Earlier this year Gazeley, a subsidiary of Wal-Mart, was given the go-ahead by Redcar and Cleveland Borough Council for a £30m dockside warehouse development at the mouth of the River Tees, creating 450 jobs.