Metro 3Q net income falls to ˆ97 million
Nov 3, 2009 at 12:08Metro, based in Duesseldorf, said net income for the period fell to €97 million ($144 million) from €214 million in the July-September period of 2008.
Revenue for the period fell to €15.6 billion ($23 billion) from €16.3 billion in the year-ago quarter, a 4.2 percent decline.
Metro said western European revenue was virtually flat during the first nine months of the year at €14.7 billion. The company said the trend was better than the rest of the market.
Eastern European revenue fell by 13 percent to €11.2 billion, largely because of currency effects.
Meanwhile, revenue from the Asia and Africa region increased 9.2 percent to €1.8 billion over the nine months.
The company has continued its expansion trend. Last week it announced it could open between 15 and 20 of its wholesale Cash & Carry stores in Egypt and Kazakhstan in the coming years. Cash & Carry stores sell to especially retailers, hotels and restaurants.
"Also in times of crisis we continue to invest in our growth," Eckhard Cordes, the company's chief executive said in Metro's report.
Metro said it would continue to invest in the store network in the fourth quarter as well, following the opening of 44 new stores during the first nine months of the year.
Metro is now planning to increase its international presence by more than 30 stores during the last quarter. Investments will focus on the growth regions in eastern Europe and Asia.
"We are strengthening our outstanding starting position for the next economic upturn," Cordes said.
Metro is one of the world's biggest retailers with revenue of €68 billion in 2008. Its brands also include Kaufhof department stores and Media Markt and Saturn electronics stores.
Shares of Metro closed nearly unchanged Monday at €37.50.