Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Court ruling expected on Gabon's contested election results

Read more

MEDIAWATCH

Clinton's Comedy Turn

Read more

THE WORLD THIS WEEK

Sarkozy's Populist Pivot, Bahamas Leaks, Syria Truce, Rome Olympic Bid (Part 2)

Read more

THE WORLD THIS WEEK

US Police Shootings: Race relations and the race to the White House (Part 1)

Read more

#TECH 24

Breaking the wall between technology and people

Read more

FRANCE IN FOCUS

Rural France: Challenges and opportunities

Read more

REPORTERS

Video: In Burma, ex-political prisoners struggle to return to normal life

Read more

ENCORE!

Xavier Dolan: Wunderkind of Québecquois cinema

Read more

FOCUS

The battle for UK Labour’s leadership

Read more

Business

Adidas profit crashes in a first-quarter fall of 97 percent

Latest update : 2009-05-05

German sport equipment Adidas registered a 97 percent drop in net profit in the first quarter. Adidas also announced a major restructuring of its operations, including the elimination of regional headquarters in Europe and Asia.

AFP - The German sports equipment and clothing maker Adidas posted on Tuesday a whopping 97 percent drop in first quarter net profit to just five million euros (6.7 million dollars).

A company statement also said sales had fallen by a much more modest 2 percent to 2.58 billion euros in the first three months of the year.

"We feel the effects of the economic downturn in many of our key markets," the statement quoted Adidas chairman and chief executive Herbert Hainer as saying.

He added that the group's results had been "materially affected by higher input prices, currency devaluation effects and restructuring costs."

Adidas also announced a major restructuring of its operations that would include the elimination of regional headquarters in Europe and Asia.

Hainer said: "We are now in a position to make a game-changing structural refinement to our business," and added: "The current economic climate adds urgency to accelerate our plans."

Employee reductions were planned at the group's Reebok, Rockport and TaylorMade-adidas Golf divisions, the statement said, but no figures were provided.

Looking ahead, it added that Adidas' operating margin was expected to decline, but that earnings per share were expected "to be around breakeven in the first six months of 2009" before getting well back into the black later this year.

Date created : 2009-05-05

COMMENT(S)