Helsinki, April 28 - Finnish retailer Kesko reported a steeper-than-forecasted drop in underlying operating profits on Tuesday, hit by weak demand, and repeated that earnings over the next 12 months would fall from a year earlier.
"As a result of the problems in the financial market and the contraction of the real economy, the outlook for the near future remains dim," Kesko said in a statement.
Operating profit excluding non-recurring items sank to 3.4 million euros ($4.43 million) between January and March from 36.6 million in the same quarter last year.
The result undershot the average estimate of 10 million in a Reuters poll of analysts, but was within the range of estimates.
The retailer repeated its guidance from February, saying that net sales and operating profit excluding non-recurring items from continuing operations over the next 12 months were expected to remain below the year-ago level.
"The group's liquidity and solvency are expected to remain good," it said.
Net sales from continuing operations fell by 11.4 percent in the first quarter to 2.02 billion euros, narrowly missing the average estimate of 2.05 billion in the Reuters poll.
Sales were hurt by a decline in the construction markets, especially in the Nordic and the Baltic countries, and a decrease in car and machinery sales, while the grocery trade held up well, Kesko said.
Kesko shares traded down 1.1 percent at 17.53 euros by 0752 GMT, holding up better than the Helsinki bourse general index which was down 2.7 percent.