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LUXOTTICA GROUP ANNOUNCES SECOND QUARTER AND FIRST HALF RESULTS

 LUXOTTICA GROUP ANNOUNCES SECOND QUARTER AND FIRST HALF RESULTS
 AGORDO, Italy, July 27 /PRNewswire/ -- Luxottica Group S.p.A. (NYSE: LUX) today announced its results for the second quarter and for the six months ended June 30, 1992. The company's results where denominated in dollars are calculated at the average exchange rate for the period ended June 30, 1992 of $1 equal Lire 1,218.15.
 The company wants to draw the attention on the change of the conversion ratio of its ADS (American Depositary Share) into ordinary shares that took place on July 10, 1992. The ratio is now 1:1, where one ADS equals one ordinary share. Therefore, in reporting the following figures, the company adjusted the earnings per ADS of the previous year.
 Net sales for the second quarter of 1992 increased 17.5 percent to Lire 143,017 million (US$117.4 million) from Lire 121,755 million. Net income rose 17.5 percent to Lire 19,531 million (US$16.0 million) versus Lire 16,621 million in the comparable 1991 period.
 Earnings per American Depositary Share (each ADS represents one ordinary share) for the second quarter of 1992 were Lire 434, equivalent to approximately US$0.36, versus Lire 369 in the comparable 1991 period.
 For the six month period ended June 30, 1992, net sales increased 21.9 percent to Lire 283,499 million (US$232.7 million) from Lire 232,581 million in the first half of 1991. Net income rose 27.5 percent to Lire 38,875 million (US$31.9 million) compared with Lire 30,486 million in the comparable period last year.
 Earnings per ADS (each ADS represents one ordinary share) for the first six months of 1992 were Lire 863 versus Lire 677. In U.S. dollar amounts, earnings per ADS for the first six months of 1992 were $0.71.
 Commenting on the activity of the first half of the year, Leonardo Del Vecchio, founder and chairman of Luxottica said, "We are, once again, pleased with these results. Sales are in line with our targets and we maintained the operating expenses on track with expectations."
 Regarding the group's geographical breakdown in the first half of 1992, U.S. sales, which reported an increase of 12.8 percent in dollar terms and 3.6 percent in units sales, accounted for 36.7 percent over total consolidated revenues. Italy and the rest of the world were 25.3 percent and 38.0 percent, respectively. A breakdown of sales reveals that designer frames contributed 46.9 percent of total sales in the first half of 1992 compared with 38.2 percent in the same period of 1991.
 The company also reported that the number of frames sold through June 30, 1992 was over 5.6 million units, an increase of 9.5 percent from the comparable 1991 period.
 Gross profit in the first half of 1992 increased 21.9 percent, in line with the rise in sales, to Lire 189,251 million compared to Lire 155,279 million the year before. Gross margin at 66.8 percent remained stable.
 Selling, general and administrative expenses were Lire 118,824 million and accounted for 41.9 percent over total sales versus 43.5 percent in the comparable 1991 period. Within SG&A, royalties and advertising were the only figures that rose more than proportionally to sales. Royalties rose to 4.5 percent from 3.9 percent as a percentage of sales due to the higher proportion of designer frames sold in 1992. Advertising expenses, at Lire 16,442 million versus Lire 11,138 million, rose because of major expenses incurred in 1992 promote and support the Yves Saint Laurent line.
 Operating income amounted to Lire 70,427 million, rising by 30.2 percent and, as a consequence, operating margins rose to 24.8 percent from 23.3 percent. Net income as a percentage of sales was 13.7 percent versus 13.1 percent and amounted to Lire 38,875 million.
 Commenting on the future expansion of Luxottica Group, Del Vecchio added, "As we've mentioned so often before, Luxottica's strategy is to expand geographically around the world in those markets that are still untapped. In keeping with that strategy, in July we opened a new subsidiary in Brazil. We have begun the activity at the beginning of the month and we believe that the Brazilian market will nicely welcome our products."
 Luxottica Group is the world leader in the design, manufacture and marketing of high quality eyeglass frames in the mid- and premium-priced categories. The company's products, which are designed and manufactured in four facilities based in Italy and include over 1,200 styles available in a wide array of colors and sizes, are sold through wholly owned distributors in the U.S., Canada, Italy, France, Spain, Portugal, Sweden, Germany, United Kingdom and Brazil, 51 percent-owned distributors in Belgium and Greece and 50 percent-owned distributor in Japan.
 LUXOTTICA GROUP S.P.A. AND SUBSIDIARIES
 Consolidated Statements of Income (Unaudited)
 (Millions of Lire)(A)
 Three months ended June 30 1992 1991 Pct. Change
 Net sales 143,017 121,755 17.5
 Cost of sales (44,510) (39,276)
 Gross profit 98,507 82,479 19.4
 S,G&A expenses (62,443) (52,822)
 Income from operations 36,064 29,657 21.6
 Interest expense (1,299) (1,673)
 Interest income 952 937
 Other - net (290) 572
 Income before provision for
 income taxes 35,427 29,493 20.1
 Provision for income taxes (15,676) (12,402)
 Net income before minority
 interests 19,751 17,091
 Minority interests - net (220) (470)
 Net income 19,531 16,621 17.5
 Earnings per ADS (B) 434 369
 Number of ADSs outstanding 45,050,000 45,050,000
 Six months ended June 30 1992 1991 Pct. Change
 Net sales 283,499 232,581 21.9
 Cost of sales (94,248) (77,302) --
 Gross profit 189,251 155,279 21.9
 S,G&A expenses (118,824) (101,185) --
 Income from operations 70,427 54,094 30.2
 Interest expense (2,798) (3,559) --
 Interest income 1,769 1,787 --
 Other - net 1,782 2,050
 Income before provision for
 income taxes 71,180 54,372 30.9
 Provision for income taxes (31,313) (23,078)
 Net income before minority
 interests 39,867 31,294
 Minority interests - net (992) (807)
 Net income 38,875 30,487 27.5
 Earnings per ADS (B) 863 677
 Number of ADSs outstanding 45,050,000 45,050,000
 (A) -- Except per ADS amounts which are in Lire and expect number of ADS.
 (B) -- Each ADS represents one ordinary share.
 CONSOLIDATED STATEMENTS OF INCOME
 Key figures in U.S. dollars
 Quarter ended June 30 1992(A) 1991(B)
 Net sales $117,404,503 $99,923,593
 Net income 16,033,250 13,639,934
 Earnings per ADS 0.36 0.30
 Six months ended June 30 1992(A) 1991(B)
 Net sales $232,727,992 $190,877,822
 Net income 31,912,990 25,019,676
 Earnings per ADS 0.71 0.56
 (A) -- Average rate Lire/$ equal 1,218.156 for the period ended June 30, 1992.
 (B) -- Average rate Lire/$ equal 1,218,481 for the period ended June 30, 1991.
 Luxotica Group noted that the figures in Lire are the more accurate gauge of its results due to the distorted effects caused by the currency translation.
 -0- 7/27/92
 /CONTACT: Susi Belli, director-investor relations of Luxottica Group S.p.A., c/o Dewe Rogerson, 212-688-6840/
 (LUX) CO: Luxottica Group S.p.A. ST: IN: SU: ERN


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