Germany's Metro Shares Dive After Operating Earnings Fall -- Update
August 02 2016 - 6:06AM
Dow Jones News
By Ulrike Dauer
FRANKFURT--Shares of Metro AG (MEO.XE) fell more than 8% Tuesday
morning after the German retailer reported third-quarter operating
earnings fell and net profit was flattered by a lower tax rate.
The company, which operates food, wholesale and
retail-electronics stores, said its earnings before interest and
taxes excluding special items--a yardstick of operating
performance--fell 26% to 154 million euros ($172 million), mainly
because of lower profit in its Media-Saturn consumer electronics
division, currency-translation effects, and lower real-estate
disposal gains.
One-off costs of EUR190 million, mainly related to restructuring
Metro's Cash & Carry business, also weighed.
Sales fell 2.7% to EUR13.59 billion, primarily because of
negative currency-translation effects.
Adjusted net profit for the fiscal third quarter rose to EUR79
million from EUR22 million in the same period last year, boosted by
a significantly lower tax rate.
At 0951 GMT, Metro was the biggest decliner on the MDAX with its
shares down 6.9% at EUR26.51.
Baader Helvea analyst Volker Bosse noted the disappointing EBIT
in the consumer electronics segment. While Metro confirmed its
full-year guidance of slightly higher sales and EBIT, "despite the
persistently challenging economic environment," several traders
doubted it would reach those targets.
Metro recently said it would divide its business into food and
electronics divisions, which received a positive response from
analysts.
Write to Ulrike Dauer at ulrike.dauer@wsj.com
(END) Dow Jones Newswires
August 02, 2016 06:51 ET (10:51 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Ceconomy (PK) (USOTC:MTTRY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ceconomy (PK) (USOTC:MTTRY)
Historical Stock Chart
From Jul 2023 to Jul 2024