Key Developments: adidas AG (ADSGn.DE)
85.60EUR
24 May 2013
€-0.79 (-0.91%)
€85.52
€86.27
€86.28
€84.82
713,934
946,959
€88.35
€54.75
Latest Key Developments (Source: Significant Developments)
Adidas AG Announces FY 2012 Dividend Proposal; Issues FY 2013 Earnings per Share Guidance below Analysts’ Estimates
Adidas AG announced that it will propose, at its Annual General Meeting on May 8, 2013, to distribute a dividend of EUR 1.35 per share for fiscal year 2012, representing an increase of 35% compared to the dividend of EUR 1.00 per share the Company paid for fiscal year 2011. Subject to shareholder approval, the dividend will be paid on May 9, 2013. The proposal represents a payout ratio of 35.7% of net income attributable to shareholders excluding goodwill impairment losses, compared to 34.1% in the prior year. This complies with the Company’s dividend policy, according to which Management intends to pay out between 20% and 40% of net income attributable to shareholders annually. Based on the number of shares outstanding at the end of 2012, the dividend payout will thus increase to EUR 282 million compared to EUR 209 million in the prior year. The Company also announced that it expects for fiscal year 2013 earnings per share to be in the range of between EUR 4.25 per share and EUR 4.40 per share. According to I/B/E/S Estimates, the analysts are on average expecting the Company to report for fiscal year 2013 earnings per share of EUR 4.50 per share. Full Article
Adidas AG Comments of FY 2012 Net Income and EPS Guidance
Adidas AG announced that fiscal year 2012 net income attributable to shareholders is projected to increase at a rate of between 15% to 17% to a level between EUR 770 million and EUR 785 million. This equates to basic earnings per share between EUR 3.68 and EUR 3.75. According to I/B/E/S Estimates, analysts on average are expecting the Company to report fiscal year 2012 net income of EUR 807.07 million and EPS of EUR 3.84. Full Article
Adidas AG Increases FY 2012 Guidance
Adidas AG announced that it has increased its guidance for the fiscal year 2012. Compared to the previous guidance, the Management of the Company continues to forecast sales to increase at a rate approaching 10% on a currency-neutral basis in 2012. For the fiscal year 2012, the Company gross margin is forecasted to be around 47.5% (fiscal year 2011: 47.5%). Net income is projected to increase at a rate of between 15% to 17% to a level between EUR 770 million and EUR 785 million (previously: increase at a rate of 12% to 17% to a level between EUR 750 million and EUR 785 million). This equates to basic earnings per share between EUR 3.68 and EUR 3.75 (previously: EUR 3.58 per share and EUR 3.75 per share). In addition, the Company expects lower interest rate expenses in fiscal year 2012 as a result of a lower average level of gross borrowings. The Company tax rate is expected to be slightly less favorable compared to the fiscal year 2011 with 27.7%, at a level of approximately 28.5% in the fiscal year 2012. Full Article
Adidas AG To Close Its Only Factory In China-Reuters
Reuters reported that Adidas AG is closing its only Company-owned sportswear factory in China later this year to streamline manufacturing. The Suzhou Adidas factory employs about 160 workers who were notified of the closure a few months ago and who will receive a benefits package. Full Article
Adidas AG Reaffirms FY 2012 Guidance-DJ
Dow Jones reported that Adidas AG reaffirmed fiscal 2012 guidance and expects sales to increase at a rate approaching 10% on a currency-neutral basis and net profit to increase by 12% to 17% to between EUR750 million ($921 million) and EUR785 million. The Company reported revenue of EUR13.344 billion in fiscal 2011. Full Article
Adidas AG Signs New EUR 500 Million Revolving Credit Facility
Adidas AG announced that it has signed a EUR 500 million revolving credit facility. The new transaction was syndicated as the Group's EUR 2 billion revolving credit facility established in October 2005 expires this year. The new five-year facility incorporates two one-year extension options exercisable at the end of the first and second year. Bayerische Landesbank, HSBC Bank plc and Mizuho Corporate Bank Ltd. are acting as Coordinators, and, together with Citigroup Global Markets Ltd., Deutsche Bank AG, Standard Chartered Bank, The Bank of Tokyo-Mitsubishi UFJ Ltd., JP Morgan Ltd., Bank of America Securities Ltd. and UniCredit Bank AG, as Bookrunners. Syndication was completed among a select group of Adidas AG's relationship banks. The facility was substantially oversubscribed with the support of all the existing syndicate banks. Adidas AG signed this medium-term facility with a commitment fee of 14 basis points p.a. The margin is 40 basis points over Euribor. Full Article
Adidas AG Being Sued Over Barefoot Running Shoe Claims-Reuters
Reuters reported that A New York man has sued a unit of Adidas AG claiming he was duped about the potential fitness benefits of a line of shoes designed to mimic the effect of running barefoot. In a class action lawsuit filed in federal court in Brooklyn on Friday, plaintiff Joseph Rocco said the $90 pair of adiPure shoes he purchased did not deliver the increased training efficiency and decreased risk of injury promised in advertisements. The lawsuit was filed against Adidas America Inc, a U.S. subsidiary of German-based Adidas, which makes the adiPure shoes. Contrary to Adidas’ claims, the shoes actually increase the risk for bruising and foot damage, due to their decreased padding and other structural differences from more traditional running shoes, Rocco said in the lawsuit. Rocco said he and other customers were never warned about the potential hazards and that, as a result, he suffered compound fractures after training in the shoes. The lawsuit seeks to certify a class of everyone who purchased adiPure shoes since their debut in August 2011. Rocco is seeking a refund for the shoes, as well as statutory damages. Adidas did not immediately return a request for comment. Full Article
Adidas AG's TaylorMade-adidas Golf Business Segment Completes Acquisition of Adams Golf, Inc.
Adidas AG announced that its TaylorMade-adidas Golf business segment completed the acquisition of Adams Golf, Inc. for USD 10.80 per share in cash which represents a transaction value of approximately USD 70 million (EUR 53 million). Full Article
adidas AG Raises FY 2012 Guidance
adidas AG announced that it has increased guidance for the full year 2012. The Company now forecasts adidas Group sales to increase at a rate approaching 10% on a currency-neutral basis in fiscal year 2012 (previously: mid- to high-single-digit rate). In fiscal year 2012, the adidas Group gross margin is forecasted to be approximately 47.5% (fiscal year 2011: 47.5%). In 2012, the operating margin for the adidas Group is expected to increase to a level approaching 8.0% (fiscal year 2011: 7.6%). As a result, net income attributable to shareholders is now projected to increase at a rate of 12% to 17% to a level between EUR 750 million and EUR 785 million. This equates to basic earnings per share between EUR 3.58 and EUR 3.75 (previously: increase at a rate of 10% to 15% to a level between EUR 3.52 and EUR 3.68; fiscal year 2011: EUR 3.20). In addition, the Group expects lower interest rate expenses in fiscal year 2012 as a result of a lower average level of gross borrowings. The Group tax rate is expected to be slightly less favorable compared to the prior year 20122, at a level approximately 28.5% (fiscal year 2011: 27.7%). For the fiscal year 2011 the Company reported revenue of EUR 13,344.00 million and net income of EUR 671.00 million. According to I/B/E/S Estimates, analysts on average are expecting the Company to report revenue of EUR 14,487.69 million, net income of EUR 789.46 million and earnings per share of EUR 3.75. Full Article
adidas AG Raises FY 2012 Sales and Net Income Guidance
adidas AG announced that it has updated its financial forecasts for the fiscal year 2012 and expects Group sales to grow at a rate approaching 10% on a currency-neutral basis (previously: mid- to high-single-digit). Net income attributable to shareholders is expected to increase at a rate between of 12% and 17% (previously: between 10% and 15%) in the fiscal year 2012. For the fiscal year 2011 the Company reported revenue of EUR 13,344.00 million and net income of EUR 671.00 million. According to I/B/E/S estimates, analysts on average are expecting the Company to report fiscal year 2012 revenue of EUR 14,484.46 million and fiscal year 2012 net income of EUR 787.87 million. Full Article
UPDATE 1-Adidas and Puma take rivalry to European soccer final
FRANKFURT/LONDON, May 24 - German sportswear makers Adidas and Puma renew their own decades-old rivalry when soccer teams Bayern Munich and Borussia Dortmund meet in Europe's Champions League Final at Wembley on Saturday.
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