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Metro Cuts Outlook

Citing a worsening consumer environment in Europe and record unemployment in the euro zone, the company has lowered its operative earnings forecast for 2012.

BERLIN — Citing a worsening consumer environment in Europe and record unemployment in the euro zone, the Metro Group has lowered its operative earnings forecast for 2012.

The German cash & carry, department store, hypermarket and electronics retail group said its business development has been materially effected in Southern Europe and parts of Eastern Europe. The group now expects earnings before interest and taxes and special items to reach around 2 billion euros, or $2.5 billion at current exchange, compared to roughly matching the previous year¹s results of 2.37 billion euros.

Metro has not changed its target of sustainable sales growth in 2012, with an improved cash flow development and a subsequent decline in net debt.