HERZOGENAURACH (dpa-AFX) - German sportlifestyle company Puma AG (PMMAF.PK) Wednesday reported a plunge in profit for the third quarter, weighed down by items, amid a challenging business climate in Europe that led to a modest growth in sales. The company predicted lower year-over-year profit for the year.
Net earnings plunged over 85 percent to 12.2 million euros from 81.7 million euros. Earnings per share declined to 0.81 euros from 5.45 euros.
The latest results included special items of 80 million euros for Transformation and cost reduction program.
Earnings before taxes fell to 21.3 million euros from 116.6 million euros. Operating result, or EBIT, was 19.6 million euros, a sharp decline from last year's 118.6 million euros.
Sales climbed 6 percent to 892.2 million euros from 841.6 million euros but missed estimates. On a currency neutral basis, sales grew 0.5 percent.
Looking ahead, the company expects annual net earnings to be significantly below from 2011, impacted by one-time expenses.
Puma maintained its 2012 sales guidance at a mid-single digit rate in euro terms.
Franz Koch, CEO, said, 'We have taken decisive actions to overcome the issues we are currently facing in particular in Europe. Our Transformation Program 2010-2015 in combination with immediate cost cutting measures and a strengthened product pipeline in Performance and Lifestyle for next year will provide a solid basis for sustainable and desirable growth.'
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