Duesseldorf, Germany, Nov 3 - German retailer Metro AG expects the rest of the year to remain tough and sees no clear signs for a fast overall recovery as the economic downturn is set to push unemployment higher, it said.
The world's fourth-largest retailer affirmed its commitment to the Russian market, where it operates 50 Cash & Carry wholesale stores, after Carrefour said in October it was pulling out of the crisis-hit country.
The macroeconomic environment, especially in Europe, would stay challenging and there were no clear signs of a "fast and sustainable economic upswing in 2010" as unemployment was expected to continue to rise, burdening retailers, it said.
"We do not anticipate that trends will significantly improve (in the fourth quarter)," Metro said in a statement on Tuesday.
Data last week showed that German retail sales fell unexpectedly in September, in a sign consumers in Europe's largest economy are reining in spending despite government efforts to prop up the labour market.
Britain's Tesco had told Reuters last month that there were signs of a gradual improvement in the global economy and consumers were starting to return to more expensive purchases, like organic foods and ready meals.
Metro's third-quarter earnings before interest and tax (EBIT) before special items fell 1.2 percent to 357 million euros ($527.4 million), above the average estimate of 340 million in a Reuters poll of analysts.
Sales fell 4.6 percent to 15.59 billion euros, broadly in line with estimates.
According to StarMine, which weights analysts' forecasts by their track records, Metro trades at a premium to Carrefour and Tesco because its Cash & Carry and its consumer electronic operations are more cyclical than other retailers' businesses and would be more in demand when recovery kicks in, analysts said.