Adidas profits up 11pc at 140mn euros

BERLIN: German sportswear and equipment maker Adidas said Thursday its second quarter net profit gained 11 percent to 140 million euros ($200 million) and it should reach 650 million euros for the year.

Adidas raised its 2011 sales growth forecast to 10 percent, from a previous outlook of less than 10 percent, owing to strong demand for its products in emerging markets.

It put earnings per share at between 2.98 euros and 3.12 euros, which on the basis of the number of shares currently in circulation would mean a net profit of 648-652 million euros for the year.

Second-quarter sales rose five percent to 3.06 billion euros, in line with market expectations.

Strong sales were reported in China, where Adidas has struggled in the past, as well as in France, Germany, Italy and Spain, the main European markets.

Like its rivals, Adidas has had to deal with a rise in raw material costs but it cut its marketing budget this year since there were no major sporting events scheduled, allowing it to maintain its profit margin.

Copyright AFP (Agence France-Presse), 2011