German retailer Metro AG (MTRAF.PK,MTAGF.PK) reported Tuesday a 33 percent rise in profit for the fourth quarter, driven mainly by sales growth internationally and strength at its Metro Cash & Carry segment. The company projects increased earnings and sales for 2011 and also announced higher dividends.
For the fourth quarter, net profit allocable to shareholders of Metro grew to 754 million euros (about $1.07 billion) from 567 million euros last year. Earnings per share were 2.31 euros, 33 percent higher than last year's 1.74 euros. The company noted that the prior year results were before special items.
Total sales for the quarter, as announced in January, grew 1.6 percent to 19.74 billion euros from last year's 19.43 billion euros on higher sales in all business segments. The sales edged up 0.1 percent in local currency.
International sales rose 4.6 percent and accounted for 60.2 percent of total sales. The company earlier had noted that sales in Germany fell 2.6 percent in the quarter, as difficult weather conditions severely hit the sales development in the Christmas business.
Earnings before interest and tax or EBIT grew 18.1 percent, mainly reflecting strong growth in Metro Cash & Carry and real estate businesses.
For the year 2010, income attributable to Metro shareholders climbed to 850 million euros or 2.60 euros per share from 383 million euros or 1.17 euros per share a year ago.
Net profit allocable to shareholders before special items surged 48.6 percent to 1.02 billion euros or 3.12 euros per share.
The company noted that the contribution to earnings of the efficiency- and value-enhancement program Shape 2012 has climbed to 527 million euros since the start of the program.
Metro Chief executive Officer Eckhard Cordes stated, "We have achieved record earnings during the greatest restructuring in the company's history and at the end of a severe economic crisis. At the half-time of Shape 2012 we can already say that we are now stronger than before the crisis."
For the year, total sales, as announced earlier, rose 2.6 percent from last year 67.26 billion euros, and the growth was 0.9 percent in local currency.
Further, Metro said its Boards at the May 6th Annual General Meeting would propose a dividend of 1.35 euros per ordinary share and 1.485 euros per preference share for financial year 2010. The dividends are higher than last year's 1.18 euros per ordinary share and 1.298 euros per preference share, respectively.
Looking ahead, for 2011, Metro expects sales to grow by more than 4 percent adjusted for portfolio changes, assuming economic recovery and a moderate price increase, mainly in energy and raw materials.
EBIT before special items are projected to rise around 10 percent in 2011.
For 2011, the company projects to open more than 110 new stores, with focus on China, India and Russia.
In the medium term, Metro projects a sales growth of more than 6 percent and EBIT before special items growth of more than 10 percent per annum.
Metro shares are currently trading at 49.08 euros, down 1.02 euros or 2.05 percent on Frankfurt's Xetra.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.