Metro FY sales up 7.5 pct to 60 bln eur thanks to acquisitions UPDATE

Metro FY sales up 7.5 pct to 60 bln eur thanks to acquisitions UPDATE

	Published : Thu, 11 Jan 2007 10:35 By : Agencies Print this Story

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DUESSELDORF, Germany (AFX) - Metro AG said full-year sales rose 7.5 pct to about 60 bln eur, boosted by the acquisition of Geant hypermarkets in Poland and Wal-Mart Stores Inc's German operations.

The German retailer's fourth-quarter sales rose 10.1 pct to 18.4 bln eur, helped by a have ry satisfactory Christmas business' in Germany.

Metro also reaffirmed that its full-year earnings per share will rise by 5-8 pct.

Without the impact of acquisitions, Metro's 2006 sales grew 6.6 pct year-on-year. This compares with Metro's own guidance for sales growth -- excluding acquisitions -- of 'around 6 pct'.

Sales in its home market Germany increased 8.3 pct in the fourth quarter. Adjusted for acquisitions, sales grew 3.2 pct and were 'noticeably above' 2005's fourth quarter.

'A sluggish sales development in October was more than compensated by a better November and a very satisfactory Christmas business,' Metro said.

International sales grew 11.7 pct in the fourth quarter.

Sales at the group's ailing Real food stores showed a 'significant increase' due to the acquisitions of the Geant hypermarkets and Wal-Mart Germany, Metro said, without providing detailed figures. Like-for-like sales in Germany were 'slightly better' than in the first nine months of 2006, it added.

Losses at Real have been hurting Metro's business. On Oct 31, chief executive Hans-Joachim Koerber said Real may become profitable at the operating level in 2006, provided the Christmas business developed well.

'Business development in the fourth quarter was in line with our expectations. This also applies to Germany. Christmas business developed all in all to our full satisfaction,' Koerber said in a statement today.

'Internationally, we dynamically expanded our network with 55 openings and took over 19 Geant hypermarkets in the fourth quarter,' he added.

The company will issue its complete 2006 financial statement on March 21.

alfred.kueppers@afxnews.com

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