WWD.com/globe-news/financial/metro-group-net-plunges-90-7310363/
government-trade
government-trade

Metro Group Net Plunges 90%

German retail slashes dividend for shortened financial year 2013.

BERLIN — In final figures for its shortened financial year, the Metro Group posted a 90 percent decline in net profit for the period ended Sept. 30.

 

Due to this profit performance, the management board of the German cash and carry, department store, hypermarket and electronics retail group does not propose to pay out a dividend for the abbreviated year.

 

Burdened by the bankruptcy of its DIY chain Praktiker, ongoing restructuring costs and a higher tax rate, net profit totaled 16 million euros, or $21.1 million, compared to 165 million euros, or $211.6 million, for the nine-month period in 2012.

RELATED CONTENT: WWD Earnings Tracker >>

Dollar figures are converted from the euro at an average exchange rate for the periods in question.

 

Adjusted for special items, Metro booked a net loss of 71 million euros, or $93.5 million, compared to a loss of 14 million euros, or $18 million.

 

Earnings before interest and taxes and special items gained 3.1 percent to 728 million euros, or $958.9 million, which the group said was in line with guidance. Adjusted for special items, EBIT surged 71.9 percent to 703 million euros, or $926 million.

 

Sales slipped 2.2. percent to 46.3 billion euros, or $60.98 billion, as reported. Adjusted for portfolio changes and currency effects, group sales for the period gained 0.9 percent.

 

For the financial year 2013/14, the Metro Group is anticipating a “slight increase in overall sales” and noted the slowed pace of the economy would also impact earnings.