30
Oct
2009
Puma down but still palying in top league
puma, the world’s third-largest sports goods maker, posted a smaller-than-expected fall in second-quarter profits yesterday, but said it still expected a challenging second half due to the ongoing recession.
the company, which in the first half of the year out- performed rival adidas ╟ the world’s number-two after us giant nike ╟ said it aimed for clear profits in the second half, despite weaker sales.
puma still refrained from giving a full-year out look, but chief executive jochen zeitz said analysts’ estimates for a 2009 sales decline of about 2 per cent would be a good guess.
“from today’s point of view, i don’t see any reason to say the situation has improved,” he said. “the market is bottoming out, but one has to be very careful about this. no-one can say how the market will develop.”
the group’s second-quarter net earnings fell 15.6 per cent to 38.5 million (￡32.7m), on sales of 600m, up 4.1 per cent.
all three major sportswear makers ╟ nike, adidas and puma ╟ have launched cost-cutting programmes to battle the economic slowdown.
puma intensified its efficiency measures earlier this year, aim- ing to save up to 150m from 2011. analyst andreas inderst said: “puma’s second-quarter results are very good, clearly demonstrating puma’s resilience to the crisis.
“we are confident that management has taken the right and proactive cost and working capital measures to maintain one of the most profitable companies in the sector.”
puma shares are trading at about 14.2 times annual forecast earnings.