Profit at Germany's Metro falls by 9pc

FRANKFURT: Metro, the world's third largest retailer, said Tuesday that its second quarter net profit fell nine percent to 40 million euros ($57 million) on sales that were stable at 15.7 billion euros.

Last week, Metro cut its full-year forecast and chief executive Ekhard Cordes said Tuesday it would "step up the strategic realignment with regard to the online business" of its electronics outlets Saturn and Media Market.

"Although the economy has continued to recover, the ongoing concerns about the European debt crisis are having a significant impact on consumer confidence," a statement said.

Metro nonetheless remained "confident that it will be able to achieve earnings growth before special items of around 10 percent" from the 2010 figure of 2.42 billion euros.

Copyright APP (Associated Press of Pakistan), 2011

Copyright AFP (Agence France-Presse), 2011