Germany: Puma's 4Q profit narrows to €8.1 million

Puma is the world's third largest sportswear company after Nike of the U.S. and crosstown rival Adidas.

French luxury goods company PPR took over Puma in 2007, acquiring more than 62 percent of the company's shares, but Puma continues to report separately and keep its German stock market listing.

The Herzogenaurach-based company earned €8.1 million ($10.2 million) in the October-December period compared with €38.3 million the year before. The decline came as the company wrote down the value of inventories and covered reorganizational expenses.

Despite the narrowing profit, sales rose 11.3 percent to €561.3 million from €504.5 million a year earlier, boosted in part by year-end discounting in the U.S. and Europe, key markets for the company, as well as in Asia.

Puma said sales in the Americas were up 6.6 percent for the quarter, reaching €171.1 million. Asia-Pacific region sales were up 10.7 percent to €169.8 million.

Sales in Europe, the Middle East and Africa rose 5.5 percent to €220.5 million.

Puma makes football, golf and athletic products as well as training outfits and Tretorn tennis goods.

For the year, the company's net profit fell 13.5 percent to €232.8 million compared with €269 million while sales rose 6.4 percent to €2.5 billion from nearly €2.4 billion in 2007.

Looking ahead, the company said it was positioned for the global financial turmoil and the reluctance among consumers to spend, but said it was difficult to come up with a reliable forecast, adding that its order backlog for 2008 was down 5.4 percent.

"We have implemented measures in the fourth quarter to prepare us properly for the coming year and will react flexibly to further changes in the market environment," Chief Executive Jochen Zeitz said in a statement.

Despite the slowdown, Puma said it would propose a dividend of €2.75 per share at its annual meeting in May.

Shares of Puma were down 0.04 percent to €132.70 in Frankfurt trading.