MTTRY Ceconomy AG (PK)

   By Ulrike Dauer 
 

FRANKFURT--Germany's Metro AG (MEO.XE) on Tuesday said sales fell in the first quarter of fiscal 2017 due to negative currency effects and soft holiday trading in Germany and several other countries.

For the quarter ended Dec. 31, sales fell 0.6% to EUR17.0 billion from EUR17.1 billion a year earlier, the wholesale and retail company said. The company is in the process of splitting into two entities.

That was shy of a Wall Street Journal poll for a 0.9% increase to EUR17.25 billion.

Metro's October-to-December quarter is typically its strongest, accounting for up to 60% of the year's earnings before interest and taxes, according to Commerzbank analysts.

In the quarter, a positive currency effect from the appreciation of the Russian ruble was more than offset by a number of weaker currencies such as the Turkish lira, Metro said in a statement.

After adjustment for currency translation effects, sales fell 0.4%.

Like-for-like sales were up 0.1% from a year earlier. In the year-earlier quarter, Metro's wholesale business in Vietnam contributed EUR100 million to sales. The business has since been sold.

Metro confirmed its full-year guidance for higher sales and adjusted EBIT this year. This guidance refers to the current group structure.

Metro, which is in the process of splitting into two companies by mid-2017--one for wholesale and food, one for consumer electronics--has said it plans to provide a new guidance once the new structure is in place.

Write to Ulrike Dauer at ulrike.dauer@wsj.com

(END) Dow Jones Newswires

January 10, 2017 02:20 ET (07:20 GMT)

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