Adidas 1Q Net Profit Falls 97 Percent To Euro5M

GEORGE FREY

FRANKFURT (AP) — German sportswear maker Adidas AG said Tuesday its first quarter net profit fell 97 percent as the economic crisis crimped the company's sales, especially in North America.

The Herzogenaurach-based company said net profit for the January-March period fell to just euro5 million ($6.61 million) from euro169 million in the first quarter of 2008.

Sales for the period fell 2 percent to euro2.58 billion ($3.41 billion) from euro2.62 billion in the first quarter of 2008.

The company, whose brands include Reebok and TaylorMade Adidas Golf products, said it expects sales to decrease at a low to mid-single digit rate in 2009.

The results pushed Adidas' stock more than 11 percent lower to euro26.21 in Frankfurt trading.

"We've faced a number of economic and market challenges in the first quarter of 2009," said Herbert Hainer, Adidas' chief executive.

"Our results have been materially affected by higher input prices, currency devaluation effects and restructuring costs," Hainer said.