BERLIN/DUESSELDORF May 8 German retailer Metro
AG cut its outlook on Thursday for its consumer
electronics division after a disappointing first three months of
the year as the unit struggled with competition from online
rivals and a leadership crisis.
The chief executive of Media-Saturn, Europe's largest
consumer electronics chain which accounts for about a third of
Metro's sales, quit on Tuesday amid a dispute between the firm's
founder, Eric Kellerhals, and majority shareholder Metro.
Metro reported Media-Saturn sales fell 3.1 percent in its
fiscal second quarter to 6.86 billion euros ($9.55 billion),
saying it had been unable to match performance in the previous
quarter due to the "consistently challenging market environment.
Metro cut its 2013/14 outlook for the business, saying it
now expected earnings before interest and tax (EBIT) before
special items to approximately match the prior year's level,
compared to a previous forecast for "sharply rising" earnings.
However, it said the Metro group remained on course to meet
its sales and earnings guidance for 2013/14 as other units
should be able to compensate for Media-Saturn.
($1 = 0.7183 Euros)
(Reporting by Emma Thomasson; editing by Thomas Atkins)