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LUXOTTICA GROUP S.p.A. REPORTS FIRST QUARTER RESULTS AND SHAREHOLDER'S APPROVAL OF A CASH DIVIDEND

 NEW YORK, April 19 /PRNewswire/ -- Luxottica Group S.p.A. (NYSE: LUX) announced today, at its annual shareholders meeting, its consolidated results for the first quarter ended March 31, 1993 and the approval by its shareholders of the 1992 dividend.
 The company considers the figures in lira a more accurate gauge of its results, due to the distorted effects caused by currency translations. The results denominated in U.S.$ are converted at the average exchange rate for 1993's first quarter of $1 equals Lire 1,547.5 and of $1 equals Lire 1,219.1 for the first quarter 1992.
 Luxottica has advised that in order to account for the increase of the tax rate for Italian companies which occurred at the end of the 1992 and which was retroactively applied to the whole year, and in order to make accurate comparisons between the quarters of 1993 and 1992, 1992 quarterly results have been restated and adjusted by applying to each quarter the average 1992 annual tax rate.
 Net sales for the first quarter ended March 31, 1993 increased 20.5 percent to Lire 169.31 billion ($109.4 million) from Lire 140.48 billion. Net income rose 23.3 percent to Lire 22.61 billion ($14.6 million) compared with Lire 18.3 billion in the comparable 1992 period.
 Earnings per ADS (American Depository Share) for the first quarter of 1993 were Lire 502 versus Lire 407 of the first quarter 1992. In US$, Earnings per ADS were $ 0.32.
 Commenting on the results, Mr. Leonardo Del Vecchio, founder of Luxottica and chairman of the board, said: "We are beginning to benefit from the devaluation of the Italian Lira. As expected, Italian products are now much more competitive on worldwide basis. This situation has allowed us to maintain our prices in all the countries in which we operate allowing us to become even more competitive."
 Regarding the Group's geographical breakdown, U.S. sales, which reported an increase of 12.2 percent in dollar terms and 7.2 percent in units sales, accounted for 42.5 percent over total consolidated revenues. Italy and the rest of the world were 19.0 percent and 38.5 percent respectively. A breakdown of sales reveals that designer frames contributed 43.7 percent of total sales in the three month period 1993, compared with 45.2 percent in the same period of 1992.
 The company also reported that the number of frames sold through March 31, 1993 was more than 2.8 million units, an increase of 1.8 percent from the comparable 1992 period.
 Gross profit increased 26.7 percent to Lire 114,990 million compared with Lire 90,744 million of the first quarter 1992. Every component of the cost of goods sold reported increases less than proportional than the increase of sales, due to the fact that all industrial costs are denominated in lira.
 Operating expenses, at Lire 66,985 million rose by 18.8 percent from Lire 56,381 million of the first quarter 1992; such an increase is lower than the rise reported in net sales. Therefore, the comparison of operating expenses to total sales improved to 39.6 percent versus 40.1 percent of the previous year. Within SG&A, selling expenses were the only cost that rose more than proportionally to sales passing from 15.4 percent of total sales to 15.9 percent in 1993.
 Operating income amounted to Lire 48,005 million rising by 39.7 percent and, as a consequence, operating margins improved to 28.4 percent from 24.5 percent of the comparable period in 1992.
 Net income before taxes and minority interests at Lire 45,740 million showed an improvement by 27.9 percent passing as a percentage of sales from 25.5 percent to 27.0 percent.
 The tax rate for the first quarter of 1993 was at 48.9 percent versus the average tax rate of 1992 at 46.6 percent. Such an increase is connected with deferred taxes while the ordinary tax rate passed from 46.6 percent to 42.0 percent reflecting early benefits of the fiscal planning implemented at the beginning of the year.
 Net income, at Lire 22,613 million, was up by 23.3 percent and, as a percentage of sales, accounted 13.4 percent versus 13.1 percent in the first quarter 1992.
 Approval of Cash Dividend
 Luxottica Group S.p.A. also announced that at the company's annual shareholders meeting, the shareholders approved the payment of a cash dividend for the 1992 fiscal year of Lire 600 per ordinary share and therefore per A.D.S. versus Lire 550 of the previous year.
 The cash dividend will be paid to ADS holders of record on July 8, 1993, and the ADS listed on the NYSE will be traded "ex dividend" on July 1, 1993.
 The Bank of New York, depositary of the Luxottica Group's ordinary shares represented by ADS, will make the dividend payable to ADS holders on July 29, 1993. The dividend will be paid in U.S. dollars using the Lire/Dollar exchange rate on July, 1993. However for illustrative purposes, if the above mentioned amount was paid tmpany also noted that the abov e mentioned dividend amounts are gross and that the withholding tax, that shall be applied, is 32.4 percent. Those ADS holders who are U.S. residents or residents in nations that have bilateral tax agreements with Italy (i.e. 15 percent withholding tax on dividends if paid to U.S. residents) should contact the company or the ADR department of The Bank of New York to be informed on the procedure to claim the reimbursement.
 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 models available in a wide array of colors and sizes, are sold through 13 branches, ten of which are wholly owned in the U.S.A., Canada, Italy, France, Spain, Portugal, Sweden, United Kingdom, Germany and Brazil; two of which are majority owned in Belgium and in Greece; and one is 50 percent owned distributor in Japan.
 LUXOTTICA GROUP
 Consolidated Statements of Income
 First quarter ended March 31 1992 1993 Percent
 (Millions of Lire)(A) Change
 Net sales 140,482 169,310 20.5
 Cost of sales (49,738) (54,320)
 Gross profit 90,744 114,990 26.7
 Selling, general and
 administrative expenses (56,381) (66,985)
 Income from operations 34,363 48,005 39.7
 Interest expense (1,499) (1,779)
 Interest income 817 814
 Other - net 2,072 (1,300)
 Income before provision for
 income taxes 35,753 45,740 27.9
 Provision for income taxes (16,643) (22,364)
 Net income before minority
 interest 19,110 23,376 22.3
 Minority interest - net (772) (763)
 Net income 18,338 22,613 23.3
 Earnings per ADS 407 502
 Number of ADS outstanding (B) 45,050,000 45,050,000
 (A) -- Except per ADS amounts which are in Lire and except number of ADS.
 (B) -- Each ADS represents one ordinary share.
 Note: Luxottica Group noted that its figures in Lire are the more accurate gauge of its results due to the distorted effects caused by the currency translations.
 LUXOTTICA GROUP
 Consolidated Statements of Income/U.S. GAAP
 (Key Figures in US$)
 Quarter ended March 31 1992 1993 Percent change
 Net sales 115,237,244 109,402,978 (5.1)
 Net income 15,042,627 14,611,668 (2.9)
 Earnings per ADS(A) 0.34 0.32
 Average Exchange Rate 1,219.1 1,547.6
 Note: Luxottica Group noted that its figures in Lire are the more accurate gauge of its results due to the distortive effects caused by the currency translation at the average exchange rate of the period.
 (A) -- Number of ADS
 outstanding 45,050,000 45,050,000
 -0- 4/19/93
 /CONTACT: Carmen Nunez of Dewe Rogerson, Inc., 212-688-6840, for Luxottica Group S.p.A./
 (LUX)


CO: Luxottica Group S.p.A. ST: IN: HOU SU: ERN

TS -- NY078 -- 7367 04/19/93 12:04 EDT
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