Metro marks up profits

July 31, 2001 Posted: 1134 GMT

LONDON (CNN) -- Germany's No. 1 retailer Metro tripled second-quarter net profits as its cut-price supermarket units boosted sales amid an economic slowdown.

The Dusseldorf-based chain said net profits in the three months to June 30 rose to 27.9 million ($24.2 million), or 0.9 per share, compared with 8.5 million, or 0.3 a share, in the same quarter a year ago.

Pretax profits at the electronics-to-food retailer rose a better-than-expected 4.4 percent to 133.4 million, as sales rose 6.4 percent to 11.87 billion compared with 11.15 billion in the year-ago quarter.

Metro has cut prices to defend market share from rivals such as the world's largest supermarket chain Wal-Mart Stores  (WMT: Research, Estimates) during the German economic slowdown.

Sales rose at its expanding consumer electronics unit and at its Cash & Carry food wholesale stores, which make up half of the company's sales, Metro said.

Metro said it opened 27 new stores worldwide, including in Europe and China. International sales rose to 44.7 percent of group sales from 42.2 percent the previous year.

The company reiterated that it saw 2001 sales rising at least 7 percent to more than 50 billion in 2001, with full-year earnings per share rising at least 10 percent.

"The first-half figures confirm our expectations of a successful 2001 and have been achieved in the face of a negative market trend," said Chief Executive Hans-Joachim Koerber.

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