Li & Fung, the worlds largest supplier of apparel and toys to retailers, said operating income slumped 40 percent in 2012 as margins and orders weakened in its U.S. business.
On 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 supplier got about 60 percent of its revenue from the U.S. in 2011, data compiled by Bloomberg showed.
In August, Li & Fung reported 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.
Now, net income in 2012 is unlikely to exceed the previous year, Li & Fung said last week. It reported earnings of $681 million in 2011. This would mark the first time since 2008 that Li & Fungs annual profit hasnt increased.
Except for LF USA, all other parts of the Groups business have performed as expected.
