Puma profit plummets

       German sportswear company Puma AG said yesterday its net income fell 24% in the third quarter due to a drop in sales, especially for footwear and in its American markets.
       Puma, based in Herzogenaurach, said net income amounted to 68 million ($101 million) in the July-September period, down from 89 million in the third quarter of 2008.
       Revenue for the period was 6% lower at 673 million from 713 million in the third quarter of 2008.
       Puma is the world's third-largest sportswear company after crosstown rival Adidas AG and Nike Inc of the US.
       "The business environment has continued to be as challenging as we had expected, which resulted in a decrease in sales and profits," Jochen Zeitz, Puma's chief executive said in the company's report.
       "Despite this most difficult market,we generated a profit in all three quarters so far and we expect to be profitable in fourth quarter again. We hope to see first signs of an improving business environment in the run up to the World Cup in South Africa, where Puma -through its strong ties with African football - has a home field advantage."
       The world soccer championship in South Africa next year is expected to add significantly to the company's revenue and earnings in coming months as fans snap up jerseys, balls and even cleats in the run-up and during the monthlong tournament which starts June 11. It is the first such tournament ever to be held in Africa, and Puma supplies 11 African national teams, including Algeria, Cameroon, Ghana and Senegal - the most of any sportswear company.
       Puma said its revenue fell 10.4% on a basis in the Americas, while Europe,the Middle East and Africa saw a 5.6%decline. Meanwhile, the Asia-Pacific region saw a 1.2% increase in revenue.
       The footwear division saw a 13% decline in revenue and apparel saw a 3%decline during the quarter. Revenue for accessories rose 40.4%.
       For the first nine months of the year,Puma reported a 50% decline in net income to 112 million on revenue of 2billion, which was nearly unchanged.
       Puma is majority held by French luxury goods company PPR.