"We are in a comfortable position to examine all our alternatives without any time pressure," former Daimler AG <DAIGn.DE> executive Eckhard Cordes said about Kaufhof, Metro's smallest unit.
DUESSELDORF, Germany (Reuters) - Metro AG <MEOG.DE> plans to turn around its Real hypermarkets within two years and could sell its Galeria Kaufhof department stores, the new chief executive of Germany's largest retailer said on Tuesday.
"We are in a comfortable position to examine all our alternatives without any time pressure," former Daimler AG <DAIGn.DE> executive Eckhard Cordes said about Kaufhof, Metro's smallest unit.
The Duesseldorf-based group, a barometer of the economic health of Germany, said it expects 2008 group sales to grow more than 6 percent without acquisitions and currency effects. It expects earnings before interest and tax (EBIT) to grow 6 to 8 percent this year.
In 2007, Metro's sales grew 10.4 percent to 64.3 billion euros ($101.4 billion) and EBIT climbed 8.8 percent to 2.1 billion euros. Analysts polled by Reuters had on average expected EBIT of 2.07 billion.
!ADVERTISEMENT!Shares of Metro were indicated to open up 1.8 percent, in line with the blue chip DAX <.GDAXI>, premarket data showed.
Cordes, who joined in November, sold Metro's 245 Extra grocery stores to Rewe AG, Germany's second-largest food retailer by sales, earlier this year.
Investors expect him to sell more assets, including property. But Metro said nothing about divesting its 12 billion euros worth of real estate. It holds a news conference later.
Real has 434 stores, of which 349 are in Germany. Of the home stores, about 40 are underperforming and generated losses of 40 million to 50 million euros last year and could be sold, the company said.
"Real, including the international business, aims to generate an EBIT margin between 2 and 3 percent in the medium term," Cordes said. Earlier, Real had forecast a similar EBIT margin for the German business only.
Analysts say they expect Kaufhof to be the most likely disposal candidate, with a sale to Arcandor <AROG.DE> -- operator of Karstadt department stores -- a possibility.
Analysts also see a partial or full spinoff of electronics chain Media Markt and Saturn as an option.
(Reporting by Rajiv Sekhri)
