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 BIELLA, Italy, Aug. 3 /PRNewswire/ -- Fila Holding S.p.A. (NYSE: FLH) announced today its consolidated results for the quarter and six months ended June 30, 1993.
 Fila reports its quarterly results solely in Lire, as this generally reflects Fila's consolidated results more accurately than translating these amounts into other currencies. For convenience, however, Fila has also furnished below translations of selected figures into U.S. dollars at the average rate of exchange in effect for the applicable periods.
 Fila's total net revenues (which consist of net direct sales, royalty income and other revenues) for the quarter ended June 30, 1993 increased 57.2 percent to Lit. 155.7 billion compared to Lit. 99.0 billion in the second quarter of 1992. Net income grew by 196.7 percent to Lit 8.5 billion, compared with Lit. 2.9 billion in the corresponding 1992 period.
 Earnings per ADS (American Depositary Share) for the second quarter of 1993 were US$0.23. Second quarter 1992 earnings were equivalent to US$0.14 per ADS.
 Commenting on these positive results, Mr. Enrico Frachey, managing director and chief executive officer of Fila, said, "Fila is well above its projected turnover and is gaining market share at a faster pace than expected. Furthermore, Fila has been able to overcome the flat market situation by capitalizing on its superior design creativity that translates into innovative and appealing products tailored for the specific needs of different markets.
 Fila's net direct sales grew by 57.9 percent to Lit. 150.6 billion for the three months ended June 30, 1993 from Lit. 95.4 billion in the corresponding 1992 period. Net direct footwear sales increased 62.1 percent (to Lit. 107.5 billion from Lit 66.3 billion) while net direct apparel sales grew 48.5 percent (to Lit. 43.2 billion from Lit. 29.1 billion). The United States, which reported an increase of 61.7 percent, accounted for 65.6 percent of total net direct sales, with footwear sales increasing 67.1 percent, and apparel sales increasing 22.6 percent. Net direct sales increased by 8.4 percent in Italy, and grew by 112.6 percent in the rest of the world, mainly due to growing apparel sales, which increased by 229.4 percent outside of the United States and Italy.
 Gross profit increased 52.9 percent in the second quarter of 1993 to Lit. 61.4 billion compared to Lit. 40.1 billion in the second quarter of 1992. As a percentage of revenues, gross profit decreased to 39.4 percent from 40.5 percent, due primarily to more expensive material components of certain footwear models and to the use of air freight to the U.S. market to assure timely delivery of footwear models in strong demand.
 Selling, general and administrative expenses (excluding advertising and promotion) increased by 62.5 percent, to Lit. 35.4 billion from Lit. 21.8 billion, with a slight increase as a percentage of net revenues. Advertising and promotion expenses rose by 61.9 percent to Lit. 12.8 billion in the second quarter of 1993 from Lit. 7.9 billion in the second quarter of 1992, in line with Fila's policy of allocating approximately 8 percent of sales to advertising and promotion.
 With respect to selling, general and administrative expenses, Mr. Frachey added, "Fila is accelerating its process of setting up a truly worldwide structure to enable the main subsidiaries to operate as independent business units. Since early 1993, Fila has planned important media campaigns in addition to the promotional presence of athletes, which continues to be Fila's most effective way of communicating to the consumer. These campaigns, mainly on American and German television, will support and advertise Fila's products which are already perceived as being on the leading edge in the marketplace."
 Income before taxes was Lit. 10.7 billion, an increase of 53.3 percent (from Lit. 6.9 billion in the second quarter of 1992), in line with revenue growth, as a result of increased selling, general and administrative expenses combined with lower other expenses.
 Consolidated Statements of Income
 (Unaudited, in millions of Lire)
 Periods ended Three months Six months
 June 30, 1993 1992 1993 1992
 Revenues 155,686 99,007 337,389 217,156
 Cost of sales 94,319 58,868 203,448 127,399
 Gross profit 61,367 40,139 133,941 89,757
 Selling, general and
 administrative expenses 48,184 29,680 96,217 63,173
 Income from operations 13,183 10,459 37,724 26,584
 Other income (expense):
 Interest income 373 308 1,177 514
 Interest expense (2,364) (2,690) (4,610) (4,821)
 Other expense - net (541) (1,130) (1,488) (1,218)
 Total (2,532) (3,512) (4,921) (5,525)
 Income before income taxes 10,651 6,947 32,803 21,059
 Income taxes 2,180 4,092 12,512 10,401
 Net income 8,471 2,855 20,291 10,658
 Earnings per ADS (in Lire)(A) 340 180 810 665
 (A) -- Earnings per ADS are calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period and adjusting for the ratio of 5 ordinary shares per ADS.
 Key Figures in U.S. Dollars
 Fila maintains its financial statements in Lire. For convenience, certain key results for the three month period are presented below as translated into dollars at the average exchange rate in effect for the respective period. Converting Fila's consolidated results form Lire into U.S. dollars at the average rate of exchange for each period, rather than at the period-end rate is consistent with Fila's practice of converting the income statements of its foreign subsidiaries into Lire at the respective average rates of exchange during the applicable periods.
 Quarter ended June 30, 1993 1992
 Net sales (US$000) 103.7 81.4
 Net income (US$000) 5.7 2.3
 Earnings per ADS(A) US$/ADS 0.23 0.14
 Average exchange rate 1,501 1,216
 (A) -- Earnings per ADS are calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period and adjusting for the ratio of 5 ordinary shares per ADS.
 -0- 8/3/93
 /CONTACT: Felicia Vonella of Dewe Rogerson Inc., 212-688-6840, for Fila Holding/

CO: Fila Holding S.p.A. ST: IN: SU: ERN

MP-TS -- NY022 -- 8805 08/03/93 10:20 EDT
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Publication:PR Newswire
Date:Aug 3, 1993

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