Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200808/20080806/article_369459.htm
Olympics, football top news for adidas
Created: 2008-8-6
Author:George Frey
SPORTSWEAR maker adidas AG said yesterday its second-quarter net profit rose 12 percent from last year on increased demand for its products during the European 2008 football tournament and on Olympic-related merchandise.
The Herzogenaurach-based company, whose goods include adidas and Reebok brand shoes and apparel and TaylorMade-adidas golf products, saw earnings rise to 116 million euros (US$180 million) in the April-June period from 104 million euros a year earlier.
Second-quarter sales were up 5 percent to 2.5 billion euros from last year's 2.4 billion euros, supported in part by more demand for its football-related shirts, shoes and balls during the European championships that took place during June in Austria and Switzerland.
The company's operating profit, which excludes financial income and expenses as well as taxes, was up 10 percent to 208 million euros from 188 million euros, and adidas also credited a lower tax rate as a factor in the net-profit improvement.
Over the first half of the year, net profit rose 23 percent to 286 million euros from 232 million euros last year. Sales were up 4 percent to 5.1 billion euros from 5 billion euros.
"Our performance is nothing short of exceptional, particularly in light of the tougher macroeconomic environment," Chief Executive Officer Herbert Hainer said in a statement.
"Adidas and TaylorMade-adidas Golf continue to show strong momentum, and we have laid the foundation at Reebok for continued improvement in the second half of the year."
First-half group sales improved 12 percent on a currency-neutral basis, while sales at the adidas brand improved by 16 percent. TaylorMade Golf saw an 11-percent improvement in sales, while Reebok's revenues decreased 2 percent. The company has been working on positioning the Reebok segment since buying it in 2005.
Six-month sales were particularly high in Latin America with 29-percent growth, while demand in Asia pushed sales 25 percent higher, including strong gains in China, host of the Olympics starting on Friday.
European sales increased 16 percent in the January-June period, with healthy contributions from all countries.
The Herzogenaurach-based company, whose goods include adidas and Reebok brand shoes and apparel and TaylorMade-adidas golf products, saw earnings rise to 116 million euros (US$180 million) in the April-June period from 104 million euros a year earlier.
Second-quarter sales were up 5 percent to 2.5 billion euros from last year's 2.4 billion euros, supported in part by more demand for its football-related shirts, shoes and balls during the European championships that took place during June in Austria and Switzerland.
The company's operating profit, which excludes financial income and expenses as well as taxes, was up 10 percent to 208 million euros from 188 million euros, and adidas also credited a lower tax rate as a factor in the net-profit improvement.
Over the first half of the year, net profit rose 23 percent to 286 million euros from 232 million euros last year. Sales were up 4 percent to 5.1 billion euros from 5 billion euros.
"Our performance is nothing short of exceptional, particularly in light of the tougher macroeconomic environment," Chief Executive Officer Herbert Hainer said in a statement.
"Adidas and TaylorMade-adidas Golf continue to show strong momentum, and we have laid the foundation at Reebok for continued improvement in the second half of the year."
First-half group sales improved 12 percent on a currency-neutral basis, while sales at the adidas brand improved by 16 percent. TaylorMade Golf saw an 11-percent improvement in sales, while Reebok's revenues decreased 2 percent. The company has been working on positioning the Reebok segment since buying it in 2005.
Six-month sales were particularly high in Latin America with 29-percent growth, while demand in Asia pushed sales 25 percent higher, including strong gains in China, host of the Olympics starting on Friday.
European sales increased 16 percent in the January-June period, with healthy contributions from all countries.
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