Metro Group reduces sales and earnings guidance

If the presently weak trend of the important Christmas business continues, the management anticipates sales of 67.3 billion for 2011, slightly down from the previous year’s level. Earnings before special item are also expected to decline slightly Euro 2.4 billion.

"Originally we had expected that, based on the weak prior-year basis, this year’s Christmas business would grow. However the start to Christmas business has so far distinctly lagged behind the prior year level", said Dr. Eckhard Cordes, CEO of Metro AG. "In many European countries consumers are very anxious in view of the growing sovereign debt crisis, higher unemployment rates and austerity programmes. In addition, leading economic research institutes are of the opinion that the already negative general environment for the national and global economy has further deteriorated during the past weeks. We feel the resulting consumer restraint across all sales divisions and national borders. We will now make every concerted effort to generate earnings for the year on the same high level as in the previous year".