METRO AG : Metro Confirms Full-year Guidance; New Savings-efficiency Plan
05/23/2012| 05:28am US/Eastern
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Retailer Metro AG (MEO.XE) Wednesday confirmed its forecast for 2012 as sales in the January-April period increased more than 1%.
Earnings before interest and tax, or EBIT, is expected to reach the previous year's level of EUR2.37 billion in 2012, Chief Executive Olaf Koch said at the annual shareholders' meeting in Duesseldorf.
The company is going through a phase of transition with the focus on restructuring the wholesale business Cash & Carry as well as the electronics businesses Media Markt and Saturn, the company said.
The company aims to raise productivity, cut prices and drive expansion which may lead to rising costs and weigh on results. Metro's first-quarter figures slipped into red although sales increased.
The company plans to improve its results with the help of a new savings and efficiency program. Koch sees a savings potential of EUR100 million a year.
The cost-cutting measures already helped improve sales in the first quarter and the positive trend has continued into the second quarter, Koch said, adding Media-Saturn results will improve in the second quarter.
-By Natali Schwab, Dow Jones Newswires; +49 69 29725 119; natali.schwab@dowjones.com
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