adidas-Salomon AG reported that sales for 2002 grew 11% on a currency-neutral basis exceeding $7.04 billion ( 6.5 billion) for the year. Net income rose 10% to $248 million ( 229 million), or $5.46 per share, up from $4.98 per share in 2001. Currency-neutral sales increased in all regions, growing at double-digit rates in both North America and Asia. Sales grew at adidas and TaylorMade-adidas Golf but declined slightly at Salomon.
The full year income implies fourth quarter net profit of 29 million euros, up from 24 million a year ago, in line with analysts’s forecasts, according to Reuters calculations confirmed by the company.
Operating expenses rose 110 bps to 35.9%. Expenses rose mainly due to 2002 FIFA World Cup promotions.
adidas has forecast a 5% earnings increase for 2003. The effect of the strengthening euro against the dollar is expected to help the bottom line in 2003. The company pays for Asia-produced goods in U.S. dollars while 50% of sales are based in Europe where they are sold in euros or pounds.
Shares have underperformed the German DAX by 12% since the start of the year, reducing hefty gains in 2002 when it was the blue-chip index’s star performer.
