Alexa
  • Directory of Taiwan

Germany's Metro makes euro100 million 1Q net loss

Germany's Metro makes euro100 million 1Q net loss

German retailer Metro AG said Tuesday its net loss widened in the first quarter as the economic crisis continued to dampen consumer spending and calendar affects shortened the number of trading days.
The Duesseldorf-based company, Germany's biggest over-the-counter retailer by sales, said its net loss for the January-March period increased to euro100 million from a net loss of euro15 million in the first quarter of 2008. The first quarter is typically the hardest for retailers as consumers limit spending after the Christmas holidays.
Metro said the quarter's figures were also negatively affected by one fewer trading day, because of the leap year, and the Easter holiday falling in the second quarter.
Sales for the period fell 2.4 percent to euro15.17 billion from euro15.55 billion in the first quarter of 2008.
"The impact of the global financial crisis on sales, procurement and refinancing markets is difficult to gauge," Metro said in its report.
"However, we must reckon with a less dynamic sales and earnings development at Metro in 2009."
The company's chief executive Eckhard Cordes called the quarter "fair" and without surprises. He said the second quarter so far had seen a positive influence from the Easter holiday, and that the company was determined to "seize opportunities" to extend its market position.
Metro operates brands including its high-end Galeria Kaufhof department store chain, the Media Markt and Saturn chains of electronics stores, Real hypermarkets and Cash & Carry wholesale stores, both domestically and internationally.
Metro said that despite the deteriorating economic situation, the company was able to increase sales in Germany during the quarter by nearly 1 percent to euro6.2 billion. It said the result was largely attributable to the positive developments of the electronics stores' sales.
The company said the Media Markt and Saturn electronics stores saw sales grow by 6.4 percent to euro4.6 billion during the first three months, driven by a Media Markt 30th anniversary campaign and the reopening of a flagship store on Berlin's Alexanderplatz.
Overall sales in the rest of western Europe fell by 2.2 percent to euro4.7 billion, while Eastern Europe saw sales fall 10 percent to euro3.5 billion in euro terms.
Sales in Asia and Africa also saw a strong 13 percent rise in euro terms to euro700,000.
Shares of Metro were down 1.8 percent at euro32.52 in Frankfurt afternoon trading.
___
On the Net:
http://www.metrogroup.de


Updated : 2021-05-13 00:00 GMT+08:00