Yue Yuen Industrial Ltd., the China footwear manufacturing giant that makes footwear for many key athletic brands, reported net income declined 2.0%to $108.5 million in the second fiscal quarter ended March 31, compared to from $110.7 million inthe year-ago period. Revenues totaled $1.19 billion for the quarter, a 1.8% rise increase versus the prior year quarter.
The Directors declared an interim dividend of HK$0.34 per share, unchanged from HK$0.34 per share last year.
A release from the comapny said that “The business environment was very difficult due to the global economic decline. However during the period under review, the Group recorded sales growth as a result of the stable demand from its brand name footwear customers, further consolidation in the footwear manufacturing industry and sales growth for the Greater China wholesale and retail operations. The total volume of shoes produced rose by 1.7% year-on-year to 129.9 million pairs, thanks to the support of our existing customers and orders from new customers. The total number of production lines remained at 440 by the end of March 2009. The Group continues to benefit from economies of scale and the close relationship it has with its brand name customers.
Yue Yuen, which makes shoes for brands such as Nike Inc. and Adidas-Salomon AG, produced 129.9 million pairs of shoes in the first half, up 1.6% from a year earlier.