Don't miss

Replay


LATEST SHOWS

FOCUS

Iranian women push boundaries through sport

Read more

MEDIAWATCH

Crowds, Lies & Alternative Facts

Read more

ENCORE!

Backstage at the Haute Couture show of designer Julien Fournié

Read more

BUSINESS DAILY

President Trump pulls US out of TPP trade deal

Read more

IN THE PAPERS

'Donald Trump is rolling back the clock on diversity in the cabinet'

Read more

IN THE PAPERS

Did France's left inflate turnout figures in round one of the primary?

Read more

ACROSS AFRICA

Dozens killed in attack on military camp in Mali

Read more

THE DEBATE

Splintered left: French Socialists divided ahead of primary run-off (part 1)

Read more

THE DEBATE

Splintered left: Are Europe's Social Democrats obsolete? (part 2)

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)