Li & Fung, which manages global supply chains for many major U.S. retailers, said that based on a preliminary review of accounts, profit attributable to shareholders for the year ended Dec. 31, 2012 is unlikely to exceed 20111.


Core operating profit for the full year 2012 is expected to be lower by approximately 40 percent due to ongoing restructuring costs and additional provisions associated with LF USAs business. Except for LF USA, all other parts of the Groups business have performed as expected.

Li & Fung reported in August that the turnaround of its U.S. business was proceeding slower than expected and undermined core operating profits in the first half of the year. Despite that, the company reported profits attributable to shareholders had increased by 33 percent over the first six months of 2011.


Core operating profit for the full year 2012 is expected to be lower by approximately 40% due to ongoing restructuring costs and additional provisions associated with LF U.S. business. Except for LF USA, all other parts of the Groups business have performed as expected. Although there will be write backs of several contingent considerations, it is estimated that profit attributable to shareholders for the full year 2012 is unlikely to exceed the profit attributable to shareholders in 2011. In 2011, those profits reached $681.4 million.

Except for LF USA, all other parts of the Groups business have performed as expected. The Group is focused on taking the necessary steps to improve results in 2013, the last year of the current three-year plan.


As of Dec. 19, 2012, Dow Peter Famulak has been appointed as the new President of LF USA, taking over from Richard Nixon Darling. Famulak is responsible for the management of all day-to-day operations of LF USA. Darling has assumed a non-operating role in the Group. With this management change, the Group expects to successfully complete its LF USA restructuring project in 2013 which includes a reduction in the number of brands for distribution in the USA.


The final audited results for the year ended Dec. 31, 2012 for the Group and other details will be disclosed in the companys results announcement in March 2013 and the 2012 annual report.