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Retailer Metro warns of difficult path ahead

Metro, the third biggest global retail group, posted solid 2010 results Tuesday but could now be hit by government austerity measures, political unrest and effects of Asian catastrophes and nuclear crisis.

Retailer Metro warns of difficult path ahead
Photo: DPA

The German rival of Wal-Mart and Carrefour warned of uncertainty to its target of a 10 percent increase in core earnings, with chief executive Eckhard Cordes saying:

“We will see if the environment allows us to reach this goal.”

Speaking during a press conference, Cordes noted “a series of clouds on the horizon” comprised of “potentially dangerous macro-economic factors that we cannot control.”

In response, investors pushed Metro’s share price sharply lower on the Frankfurt stock exchange.

Metro has benefited from a major push into emerging markets however, and said it would continue to invest in more stores this year.

In 2010, sales gained a modest 2.6 percent to €67.3 billion ($96.2 billion) while net profit more than doubled to €850 million from €383 million in 2009, a statement said.

Loss-making units like the Real supermarket chain and Kaufhof department stores managed to turn around their operations and contribute to the group’s profit, it added.

Overall earnings before interest and taxes (Ebit) before exceptional items gained 19 percent to a record €2.42 billion, exceeding the group’s own forecast of €2.3 billion.

Exceptional items were essentially the result of a broad restructuring programme begun in 2009, the company said.

Metro executives would recommend a dividend of €1.35 per share for the 2010 exercise, up from €1.18 a year earlier, it added.

But the group now faces several potentially strong headwinds, as its Saturn and Media Markt electronics stores come up against stiff competition from online retailers, and plan an Internet counter-attack of their own.

The group forecasts gains of four and 10 percent respectively in sales and Ebit this year.

Metro makes two thirds of its sales outside Germany, and is present in several regions that could suffer from the effects of political unrest, like North Africa, or natural catastrophes, like Asia.

In southern Europe, public finance problems and subsequent austerity budgets might also have a knock-on effect on consumer sentiment.

The group nonetheless plans to pursue its strategy of strong international expansion, opening its first store in Indonesia this year and more in China and India.

“The priority is still expanding in Asia and Eastern Europe,” Cordes said. Investments are expected to rise to €2.2 billion from €1.9 billion in 2010, with the opening of a total of 110 locations this year.

Investors were not convinced however, and Metro shares fell by 3.13 percent to €48.53 in late morning trades on the Frankfurt stock exchange.

The Dax index of leading stocks was 0.18 percent lower overall.

AFP/rm

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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