Frankfurt - Giant German retailer Metro AG reported a drop in fourth-quarter earnings as the deepening recession in Europe's biggest economy hit consumer spending. Dusseldorf-based Metro said net profit declined by 2.7 per cent to 691 million euros (924 million) dollars in the final three months of 2008.
The company, which has more than 2,000 stores spanning Western Europe as well Asia, the Middle East and Central Europe, decided against issuing a 2009 forecast in light of the global economic downturn. It also warned sales growth could fall short of medium-term projections.
Metro announced in January plans to cut 15,000 jobs, or 5 per cent of its workforce, by 2012 in an attempt to buoy profits in the face of global economic uncertainty.
However, the retailer said full-year 2008 earnings, before interest, tax and special items, rose 7.1 per cent to 2.2 billion euros.
