Metro 3Q Net Income Falls To Euro97 Million

GEORGE FREY

FRANKFURT (AP) — German retailer Metro AG said third-quarter net profit fell 55 percent because of currency exchange rate swings and lower prices in key food categories.

Profit for the period fell to euro97 million ($144 million) from euro214 million in the July-September period of 2008, the company said Tuesday. Revenue fell to euro15.6 billion ($23 billion) from euro16.3 billion, a 4.2 percent decline.

Metro, based in Duesseldorf, said western European revenue was virtually flat during the first nine months of the year at euro14.7 billion. The company said that trend was better than the rest of the market.

Eastern European revenue fell by 13 percent to euro11.2 billion, from nearly euro13 billion a year ago, largely because of currency effects. Meanwhile, revenue from the Asia and Africa region increased 9.2 percent to euro1.8 billion over the nine months.

Metro is one of the world's biggest retailers with revenue of euro68 billion in 2008. Its brands also include Kaufhof department stores and Media Markt and Saturn electronics stores.

"Metro remains our preferred restructuring in the sector," said Christopher Hogbin, a retail analyst at Bernstein Research.