April 20, 2018 / 3:24 PM / 6 months ago

Metro lowers outlook on weak Russia business

FRANKFURT, April 20 (Reuters) - German retailer Metro lowered its earnings outlook for its fiscal year 2017/18, citing a poor performance at its Russian operations and sending its shares lower.

Metro said on Friday it now expects earnings before interest, tax, depreciation and amortization to increase only slightly, compared to a previous guidance of a roughly 10 percent increase.

It expects sales to increase only by 0.5 percent versus earlier guidance for a 1.1 percent rise.

Its shares lost 8 percent in late afternoon trading.

Metro said the reduced guidance was mainly based on the fact that sales in its Russia business were now set to be behind expectations in the second half of the year, while restructuring costs would be higher than anticipated.

Metro is currently in talks over selling its MediaMarktSaturn branded Russian consumer electronics operations, it said last week. (Reporting by Arno Schuetze Editing by Victoria Bryan)

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