Tuesday May 5, 10:26 AM
German retail giant Metro posts first quarter loss
FRANKFURT (AFP) - The German retail giant Metro (Xetra: 725750 - news) said Tuesday that its first quarter net loss deepened to 100 million euros (134 million dollars) as sales slumped amid a gloomy economic climate.
Metro had posted a net loss of 15 million euros in the first three months of 2008.
Group sales slipped by 2.5 percent to 15.2 billion euros, a statement said.
Analysts polled by Dow Jones Newswires had forecast a lower net loss of 37 million euros but a slightly larger drop in sales to 15.1 billion euros.
Metro took 33 million euros in charges linked to the implementation of a cost-cutting programme that should lead to the elimination of 15,000 posts.
Sales in eastern Europe, a region that has provided growth in recent years, fell by 10 percent, while German sales stabilised with a slight gain of 0.6 percent, the statement said.
Metro forecast generally weaker activities for the full year, with sales now expected to fall well below a medium term growth target of six percent per year.
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