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LUXOTTICA GROUP S.p.A. ANNOUNCES NINE MONTH AND THIRD QUARTER RESULTS

 LUXOTTICA GROUP S.p.A. ANNOUNCES NINE MONTH AND THIRD QUARTER RESULTS
 AGORDO, Italy, Nov. 2 /PRNewswire/ -- Luxottica Group S.p.A. (NYSE: LUX) announced its results for the third quarter and nine months ended Sept. 30, 1992. The third quarter 1992 dollar amounts are calculated at the average exchange rate of $1.00 equals Lire 1,128.5 while the average exchange rate for the 1991 third quarter was $1.00 equals Lire 1,303.1. The nine month 1992 period average exchange rate was $1.00 equals Lire 1,189.2 versus $1.00 equals Lire 1,247.6 for the 1991 nine month period.
 Net sales for the third quarter of 1992 increased 1.2 percent to Lire 105.3 billion (U.S. $93.3 million) from Lire 104.1 billion (U.S. $79.9 million). Net income rose 8.3 percent to Lire 13.3 billion (U.S. $11.8 million) versus Lire 12.3 billion (U.S. $9.4 million) in the comparable 1991 period.
 Earnings per American Depositary Share (ADS) for the third quarter of 1992 were Lire 296, equivalent to approximately U.S. $0.26 (one ADS equals one ordinary share) compared with U.S. $0.21 for the third quarter 1991.
 For the nine month period ended Sept. 30, 1992, net sales increased 15.5 percent to Lire 388.8 billion (U.S. $327 million) from Lire 336.7 billion (U.S. $270 million) in the comparable period of 1991. Net income rose 22.0 percent to Lire 52.2 billion (U.S. $43.9 million) compared with Lire 42.8 billion (U.S. $34.3 million) in the comparable period last year.
 Earnings per ADS for the nine month period ended Sept. 30, 1992 were Lire 1,159, equivalent to approximately U.S. $0.97 versus $0.76.
 Commenting on the results, Mr. Leonardo Del Vecchio, chairman of the board, reflected, "The third quarter of 1992 was characterized by the overlapping of the recession in both North America and Europe. Another element that substantially influenced the quarter's results was the weakness of the dollar. In fact, had the dollar been stable, the consolidated sales would have increased by 8.6 percent quarter over quarter and by 17.8 percent for the nine month period. Going forward, the group, exporting from Italy more than 75 percent of its production, is already benefiting by the lira devaluation which occurred last September. The weak lira, together with those positive factors that have always mirrored the group's activity -- efficient production, worldwide distribution network and keen customer service -- will maintain Luxottica's expansion for the future."
 In the nine month period ended Sept. 30, 1992, U.S. sales, which reported an increase of 9.3 percent in dollar terms (4.2 percent in lire terms), accounted for 38.5 percent over total consolidated revenues. Italy and the rest of the world were 23.5 percent and 38.0 percent, respectively, reporting increases of 20.1 percent and 26.4 percent.
 A breakdown of sales reveals that designer frames contributed 45.9 percent of total sales in the nine month period compared with 37.8 percent in the same period of 1991.
 The company also reported that the number of frames sold through Sept. 30, 1992 was over 7.8 million units, an increase of 6.1 percent from the comparable 1991 period.
 Gross profit in the nine month period of 1992 increased 14.9 percent, in to Lire 260,811 million compared to Lire 226,990 million the year before. Gross margin for the nine month period reached 67.1 percent, substantially in line with the comparable period last year. This is a result of the weaker dollar, since the main industrial costs are denominated in lire.
 Selling, general and administrative expenses, at Lire 165,411 million, rose by 12.3 percent that is lower than the percentage rise of net sales. Therefore, the comparison to total sales improved to 42.5 percent over total sales versus 43.8 percent of the previous year. Within SG&A, royalties and advertising were the only costs that rose more than proportionally to sales. Royalties passed from 3.8 percent to 4.2 percent as a consequence of the increase in the designer lines sales during the period. Advertising expenses, which were 5.7 percent over total sales versus 4.8 percent of the same 1991 period, passed from Lire 16,074 million to Lire 22,055 million due to the major expenses incurred in 1992 promote and support the Yves Saint Laurent line.
 Operating income amounted to Lire 95,400 million, rising by 19.8 percent and, as a consequence, operating margins improved to 24.5 percent from 23.7 percent. For the nine month period ended Sept. 30, 1992, the tax rate rose to 44.4 percent versus 42.9 percent.
 Net income, at Lire 52,209 million, represented 13.4 percent of total sales versus 12.7 percent of the comparable 1991 period.
 Commenting on the activity of the company, Mr. Del Vecchio added, "We believe that the level of the group's margins is a good indication of the performance of the company. The group also continues to gain market shares. Therefore, as soon as the economy will show signs of recovery, the competitive position of Luxottica will be much stronger than at the beginning of the recession."
 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 United States, 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.
 Consolidated Statements of Income
 (Millions of Lire)(A)
 Three Months Ended Sept. 30 1992 1991 Pct. Change
 Net sales 105,347 104,112 1.2
 Cost of sales (33,787) (32,401)
 Gross profit 71,560 71,711 (0.2)
 Selling, general & admin. exps. (46,587) (46,161)
 Income from operations 24,973 25,550 (2.3)
 Interest expense (1,859) (1,576)
 Interest income 1,607 985
 Other - net 567 (2,264)
 Income before provis. inc. taxes 25,288 22,695 11.4
 Provision for income taxes (11,684) (10,010)
 Net inc. bef. minority interests 13,604 12,685
 Minority interests - net (270) (374)
 Net income 13,334 12,311 8.3
 Earnings per ADS 296 273
 Number of ADSs outstanding 45,050,000 45,050,000(B)
 (A) Except per ADS amounts which are in Lire and except number of ADS.
 (B) Each ADS represents one ordinary share.
 Luxottica 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 at the average exchange rate period.
 LUXOTTICA GROUP S.P.A.
 Consolidated Statements of Income
 (Millions of Lire)(A)
 Nine Months Ended Sept. 30 1992 1991 Pct. Change
 Net sales 388,846 336,693 15.5
 Cost of sales (128,035) (109,703)
 Gross profit 260,811 226,990 14.9
 Selling, general & admin. exps. (165,411) (147,346)
 Income from operations 95,400 79,644 19.8
 Interest expense (4,657) (5,135)
 Interest income 3,376 2,771
 Other - net 2,349 (214)
 Income before provis. inc. taxes 96,468 77,066 25.2
 Provision for income taxes (42,997) (33,088)
 Net inc. bef. minority interests 53,871 43,978
 Minority interests - net (1,262) (1,181)
 Net income 52,209 42,797 22.0
 Earnings per ADS 1,159 950
 Number of ADSs outstanding 45,050,000 45,050,000(B)
 (A) Except per ADS amounts which are in Lire and except number of ADS.
 (B) Each ADS represents one ordinary share.
 Luxottica 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 at the average exchange rate period.
 LUXOTTICA GROUP S.P.A.
 Consolidated Statements of Income
 (Key figures in U.S. dollars)
 Quarter Ended Sept. 30 1992 1991 Pct. Change
 Net sales $93,353,883 $79,897,062 16.8
 Net income 11,816,150 9,447,128 25.1
 Earnings per ADS 0.26 0.21
 Average exchange rate $/lire 1,128.5 1,303.1
 Number of ADSs outstanding 45,050,000 45,050,000
 Nine Months Ended Sept. 30 1992 1991 Pct. Change
 Net sales $326,985,167 $269,877,102 21.2
 Net income 43,902,974 34,303,694 28.0
 Earnings per ADS 0.97 0.76
 Average exchange rate $/lire 1,189.2 1,247.6
 Number of ADSs outstanding 45,050,000 45,050,000
 Luxottica 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- 11/2/92
 /CONTACT: Susi Belli, director of investor relations of Luxottica Group, 212-688-6840/
 (LUX) CO: Luxottica Group S.p.A. ST: IN: HOU SU: ERN


LR-PS -- NY014 -- 1542 11/02/92 11:12 EST
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