FRANKFURT ( Dow Jones) – Metro AG has presented mixed results for the second quarter. Although the third-largest retail group come to Wal – Mart and Carrefour , with its restructuring program, "Shape 2012 " is continuing , which was reflected in a higher operating profit in the period. (Photo : Metro )
On balance , however, earned Metro for many market observers are surprisingly few – early costs of "Shape "and a worsened financial results were the reason for it. The shares were then on Monday – despite a more optimistic tone of the CEO Eckhard Cordes for the current year.
He was " confident " in 2010 to reach a steady market environment EBIT before special factors on pre-crisis of EUR 2.2 billion , Cordes said on Monday in Düsseldorf after publication of the half-year figures . Most recently, he had declared that " in favorable development " as early as 2010 , " almost back to " reach the pre-crisis .
The sales are expected to remain above the previous year , were reiterated earlier statements. In " Shape " Metro will proceed faster than planned. Originally planned for 2011 will cost the group prefer to part with in exchange savings come earlier , according to the CFO Olaf Koch three to six months to bear. The major restructuring issues will be processed in late 2010. Currently being negotiated , for example, about a new organization in the IT and accounting . The plan is a collection of individual sites , such as in Eastern Europe. Outsourcing to a third party , it is predicted by the CFO does not give it .
The 2010 accounted for extraordinary charges might be slightly above EUR 200 million , estimated Koch. To date, Metro has announced that it won in the current year to 170 million EUR in special charges . That fell to lower charges in 2011 , were originally budgeted for next year EUR 130 million . The total cost of EUR 650 million will not change. The share price on Monday afternoon, with 1.4 % in the red at 42 EUR and thus against the trend in the DAX, which rose by 1.7 %. Analysts described the figures as mixed, in sales and EBIT before special items were in line with expectations , the net profit was considerably lower than the estimates.
Net income for the quarter fell to 44 (52 ) million EUR. The cost of Shape were " in 82 (68 ) million EUR. The financial result deteriorated due to higher interest expenses to minus 164 ( minus 143 ) million EUR. Analysts had expected the other hand, a noticeable improvement. EBIT before exceptional items , however, increased to 334 (316 ) million EUR. Analysts surveyed by Dow Jones Newswires had expected 330 million EUR. "Shape "has contributed in the first half of nearly 200 million to EBIT , in the second quarter with EUR 103 million more than in the first three months.
The market in the second quarter had been behaving in many European countries , reported Cordes. The Boosted by an improved economic environment has further been missing . Sales increased in the Group by 2.4% to EUR 15.7 billion . The consensus forecast was here to EUR 15.767 billion . The French rival Carrefour had already proposed in mid- July sales figures for the second quarter and reported a sales growth of 6.3 % to 24.9 billion EUR. Wal -Mart released the figures on 17 August.
A strong revenue growth in the quarter, the Metro- owned Media Markt / Saturn , with an increase of 9.3 %, also driven by improved sales in connection with the World Cup. Metro benefited from stronger growth in international business , which grew by 5.4 %. Here, positive currency effects record, adjusted for these factors , growth was 1.8 %. The share of foreign business increased by 30 June to 61.9 % (60.1 %).
In Germany, sales fell by 2.2 %. Here the shift of the Easter business was in the first quarter , the cold weather in April and May, and deflationary trends in the food sector felt. There were also store disposals . The two most affected by this restructuring sales divisions Cash & Carry and Real Germany there had been progress , the board chairman. "The real site is becoming increasingly less ", said Cordes. Due to the good development, Metro has therefore decided to close 33 branches of the planned "only" 27th
Even in Cash & Carry Germany stabilization of costs is achieved. Low-margin business will cut back steadily. The sales division achieved total sales after several quarters of losses in the second quarter growth of 0.6 %. Operatively achieved all areas with the exception of Media Markt / Saturn improvements , Real and Galeria Kaufhof reduced their losses. The drop in to 41 (55 ) million EUR EBIT before special items at Media Markt / Saturn was , according to the management of higher start-up costs for the China business, the online presence and own brand strategy. The decline is not an indicator for the development of full year , sources said.
Metro itself described the overall business performance as " solid " and increased its investment budget for 2010 to 2.1 (previously 1.9) billion EUR, which is almost pre-crisis . Overall, Metro plans to open in the current year, more than 95 new locations. Focus of growth will be Eastern Europe and Asia , and the sales divisions Cash & Carry and Media Markt / Saturn. In the first half were 28 locations open and 43 closed or recovered. Of this, 17 openings in the second quarter and 29 closures.
Nothing new there was about department store sales. Metro will wait to see what would happen with the insolvent competitor Karstadt, Cordes reiterated earlier statements. In the second half will then decide which continued with "intensity" of the talks on a sale of Kaufhof to be . Furthermore, Metro ‘m not under pressure to sell the department store business .
Natali – by Schwab , Dow Jones Newswires
+49 69 29725119 , natali.schwab @ dowjones.com
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