German sportswear producer Puma has said high restructuring costs have affected profit margins. The firm has to grapple with price pressures on its products in debt-stricken Europe and a management reshuffle.
Sportswear company Puma of Germany said on Thursday high restructuring charges pushed it into the red in the final quarter of 2012, also weighing on earnings for the whole of last year.
The firm announced one-off costs of 98.2 million euros ($132 million) which saw Puma slide into negative territory in the period from October to December, with a bottom line of over 33 million euros in losses.
On top of restructuring costs, Puma also had to buy back its trademark rights from Spanish distributor Estudio in 2000.
Sales a silver lining
Despite Q4 losses, the Herzogenaurach-based sportswear giant managed to raise its sales by 11.7 percent in the same period, with revenues reaching 804.7 million euros.
For the whole of 2012, the company reported a 69.5 percent drop in net profit to 70.2 million euros. "Despite a continuously challenging market environment, Puma delivered a strong sales performance for the full year," said outgoing Chief Executive Franz.
The MDAX-listed firm is currently in a management reshuffle process, with numerous executives leaving the company. CEO Franz Koch is due to give up his post by the end of March.
hg/ccp (dpa, AFP, Reuters)