Home News UPDATE2: Adidas sees again in 2010 revenue and profit increase

UPDATE2: Adidas sees again in 2010 revenue and profit increase

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By Natali Schwab
DOW JONES NEWSWIRES 


HERZOGENAURACH (Dow Jones) – Adidas AG plans in the Football World Cup in South Africa return to growth. Both for sales and profit forecast, with the sporting goods manufacturer Headquarters in Herzogenaurach, an increase. In the past year had Adidas because of the economic crisis, significant losses accept and missed analysts’ expectations.

2009, the most difficult year was his time as CEO, since 2001, said Acting Chief Executive Herbert Hainer on the press conference on Wednesday. In the fourth quarter had However, most of the relevant markets for adidas stabilized. Also, the profitability was in the second Half of the year significantly improved.

For 2010 adidas forecast in constant currency Increase in sales in the low to single digits. A slow recovery consumer demand and a still more cautious behavior the retailer will slow the sales growth, estimates the company. However, positive effects should be in Connection with the World Cup, a strong presence in the Emerging economies and improvements in the Reebok brand, these negative effects more than compensated for, was the sporting goods company confident.

At the Adidas football sales wants the old Record level of 1.3 billion euros from the year 2008 to exceed, as Hainer on the Press confirmed. Adidas prepares for the World Cup in South Africa in the summer, twelve of the participating teams, including the Host nation and the German team.

In the operating margin forecast for 2010 adidas Increase to 6.5 (previous year: 4.9%). Diluted earnings per share are expected to rising to 1.90 EUR to 2.15 EUR, the net result of 400 million to 450 million EUR.

In the wholesale segment, the Group expects the current year with an increase in sales revenue in constant currency low single digits. The brands adidas and Reebok are thereby more than the previous year to implement.

For the retail segment, adidas expects constant currency revenue growth in the high single digits. It wants the Companies to invest further in its retail locations. adidas plane, 150 open more stores, announced Hainer. At the end of Year 2212 worldwide, the Group operated its own stores.

The figures for 2009 were worse than expected. In adidas fourth quarter missed analysts’ expectations. That Net earnings fell to 19 (54) million. Analysts surveyed by Dow Jones Newswires had expected 25 million euros.

Higher marketing expenses in connection with the Football World Cup and the support of Reebok’s growth strategy in North America put pressure on the operating margin, at 1.7% (previous year: 4.2%) fell.

Also negatively impacted by the impairment Reebok’s distribution rights in China and at its own retail stores with 19 million, or EUR 14 million euro from. Sales dropped in the final quarter by 4.5% to 2.458 billion EUR back. He remained in constant currency Compared to the previous stable.

In the fourth quarter, the consolidated balance sheet for the first time in a while its new organizational structure. Occupational activity future in wholesale, retail and other Business segments (TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and Other Centrally Guided marks) broken.

Declining sales in the wholesale and the Other business segments resulted in a full year on currency-neutral basis 6% decline in sales of nearly 10.4 billion euros. That difficult market environment, a strict competition and currency effects impacted the development.

There were also higher procurement costs and the elimination of Excess inventory at the beginning. Restructuring costs and the integration of the U.S. golf clothing manufacturer Ashworth also suggested a negative effect on the outcome. The bottom line remained one Net income of $ 245 (642) million.

For 2009, the Board proposes a lower dividend 0.35 (previous year: 0.50) EUR before. At the same time adidas announced faced with a positive cash flow development and a lower Net debt to a change in dividend policy. In the future, between 20% and 40% of the profit attributable to shareholders will be distributed. Previously it was 15% to 25%. The proposed dividend for 2009 an dividend rate correction of 30% from 15% in Last year, it said.

Ahead of the Group came in relief. The Net financial debt decreased to EUR 917 million, from EUR 2.189 billion a year earlier. The Indebtedness was the end of the year at 24.3% (64.6%). Adidas thus have their medium-term objective of a level of indebtedness of less than 50% achieved in 2009.

The ratio of net financial debt to EBITDA of under 2 (2009: 1.2) intends to maintain adidas. Surplus Adidas wants to continue funding most debt . use

The shares of the DAX Group broke the start of trading up 7%. In a initial assessment of a trader called the numbers "by the bad bank. "

By contrast Dolleschal Christopher, an analyst at LBBW said, a weaker fourth quarter was according to figures from Puma been predicted. He also referred to the strong Same quarter last year, had to compete against adidas. For the one – adjusted, the results lie roughly in the context of expectation, the Analyst.

Even the analysts at equinet explained against the background the low importance of the fourth quarter should not be too much into this Results will be read into that slightly below the Expectations lie. Adidas have convincing figures for presented the fourth quarter. Although the outlook is cautious and hence on the first glance, slightly disappointing, but expresses his views adidas traditionally reluctant

The share was quoted at 10.00 clock at 36.22 EUR, a decrease of 4.8%.

   

Website: www.adidas-group.com

-By Natali Schwab, Dow Jones Newswires
+49 (0) 69 29725 119, consumer.de @ dowjones.com
DJG / nas / has 


(END) Dow Jones Newswires

March 03, 2010 04:03 ET (09:03 GMT)

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