Market News

Metro Suffers Profit Hit; Still on Acquisition Trail

Following its acquisition of A&P Canada, Metro Inc. continues to look for potential properties—in spite of shrinking profits. Canada's third-largest supermarket chain posted a 17% loss in profits in its third quarter. Company president and CEO Pierre Lessard said: "If an opportunity arrived in Canada I think we'd be quite interested in looking at any acquisition." He also indicated that the company has its eye particularly on western Canada. Expansion in the West would help the Montreal-based company become a national chain. Metro's first-quarter profits came in at $32 million, or 28 cents a share. That compares with $38.6 million, or 40 cents, in the year-earlier period. The company chalks its drop mostly up to the costs of integrating its 236 newly acquired A&P and Dominion stores. Metro sales for the quarter, meanwhile, rose 74% to $2.52 billion. Source: Canadian Grocer E-Newsletter, January 30, 2006.