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Adidas Q1 net profit falls 97 percent to 5m euros

Adidas Q1 net profit falls 97 percent to 5m euros

German sportswear maker Adidas AG said yesterday its first quarter net profit fell 97 percent as the economic crisis crimped the company's sales, especially in North America.
The Herzogenaurach-based company said net profit for the January-March period fell to just 5 million euros (US$6.61 million) from 169 million euros in the first quarter of 2008.
Sales for the period fell 2 percent to 2.58 billion euros (US$3.41 billion) from 2.62 billion euros in the first quarter of 2008.
The company, whose brands include Reebok and TaylorMade Adidas Golf products, said it expects sales to decrease at a low to mid-single digit rate in 2009.
The results pushed Adidas' stock more than 9 percent lower to 26.80 euros in Frankfurt morning trading.
"We've faced a number of economic and market challenges in the first quarter of 2009," said Herbert Hainer, Adidas' chief executive.
"Our results have been materially affected by higher input prices, currency devaluation effects and restructuring costs. Although some of these items will recur again as we go through the balance of the year, I am convinced we will put most of these effects behind us in the current year," Hainer said.
Adidas said it expected lower earnings per share in the near-term, but an improvement in the second half of 2009. The company predicted it would then generate "significantly positive" earnings per share in the second half due to added business ahead of the soccer World Cup, which will be hosted by South Africa in 2010.


Updated : 2021-04-20 17:38 GMT+08:00