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Puma trips up on restructuring costs
FRANKFURT, GERMANY: German sportswear giant Puma said on Wednesday that earnings plummeted in the third quarter, tripped up by heavy restructuring charges.
Puma said in a statement its booked net profit of €12.2m between July and September, a drop of 85.1% from the same period a year earlier.
Pre-tax profit plunged 81.7% to €21.m, despite a 6.0% increase in sales to €892.2m.
"The implementation of the restructuring programme and cost-cutting measures weighed on third-quarter earnings," the statement said.
Nevertheless, "despite the weak business environment in Europe, Puma was able to notch up modest sales growth in the third quarter," said chief executive Franz Koch.
"We've now embarked on the measures needed to meet the challenges we face in Europe," he said. "The restructuring and cost-cutting programme would form a solid basis for sustained growth in the future," he added.
Puma cautioned that, looking ahead to the full year, one-off costs would push profits well below last year's levels.
However, the group said it was sticking to its forecast for a single-digit sales increase.
Source: AFP via I-Net Bridge.
Source: I-Net Bridge
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