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 AGORDO, Italy, Nov. 3 /PRNewswire/ -- Luxottica Group S.p.A. (NYSE: LUX) announced its results for the third quarter and nine months ended Sept. 30, 1993.
 In order to accurately compare the quarterly financial results, Luxottica has restated and adjusted the quarterly figures for 1992 using the 46.6 percent average tax rate for that year.
 Net sales for third quarter ended Sept. 30, 1993, increased 40.2 percent to Lire 147.7 billion from Lire 105.4 billion in the comparable 1992 period. Net income for the same period rose 60.4 percent to Lire 21.2 billion versus Lire 13.2 billion for the corresponding 1992 period.
 Earnings per American Depository Share (each ADS represents one ordinary share) for the third quarter 1993 were Lire 477 equivalent to approximately US$0.30 vs. Lire 294 (US$0.26) for the comparable 1992 period.
 For the nine month period ended Sept. 30, 1993, net sales increased 24.8 percent to Lire 485.4 billion from Lire 388.8 billion in the comparable 1992 period. Net income rose 31.6 percent to Lire 66.2 billion compared to Lire 50.3 billion in 1992.
 Earnings per ADS for the nine month period ended Sept. 30, 1993, were Lire 1,484 vs. Lire 1,116. In US$, earnings per ADS for the first nine months were US$0.96 vs. US$0.94.
 Commenting on the group's results, Leonardo Del Vecchio, founder and chairman of Luxottica Group, said: "1993 third quarter results have really shown a very nice increase of the group's sales. Three reasons have determined such an improvement. The first is the current demand we face in North American markets where our sales rose by 10 percent in units terms. The second is the favorable situation of the Italian Lira which, on average, is 30 percent weaker than last year. Last, but not least, comparing the group's 1993 third quarter with 1992's third quarter is easy because last year's sales for three months were extremely poor due to the decrease of delivery time for outstanding orders completed in the first six months of 1992."
 The company has also announced a new commercial joint venture in Finland where Luxottica will start selling its products through a 51 percent controlled subsidiary beginning Jan. 1, 1994.
 Regarding the group's geographical breakdown of sales during the first nine months of 1993, U.S. sales reported an increase of 11.0 percent in dollar terms, 44.3 percent in Lire and 6.5 percent in units, accounting for 44.5 percent over total consolidated revenues. Italy and the rest of the world were 18.7 percent and 36.8 percent respectively. A breakdown of sales reveals that designer frames contributed 44.9 percent of total sales in the first nine months.
 The company also reported that the number of frames sold through Sept. 30, 1993, was over 8.1 million units, an increase of 3.6 percent from the comparable 1992 period.
 Gross profit in the nine month 1993 period increased 30.3 percent to Lire 339.8 billion from Lire 260.8 billion. Gross margin, which was 67.1 percent in the first nine months of 1992, improved substantially to 70.0 percent due to the devaluation of the Lira, the currency in which the bulk of Luxottica's production costs are denominated.
 Selling, general and administrative expenses rose by 23.8 percent to Lire 204.8 billion from Lire 165.4 billion and accounted for 42.2 percent over total sales, a slight improvement from 42.5 percent in the comparable 1992 period. Operating income amounted to Lire 135.0 billion, rising by 41.5 percent and, as a consequence, group operating margin reached 27.8 percent from 24.5 percent.
 Net income before taxes and minority interests at Lire 129.5 billion reported an increase of 34.3 percent.
 Net income reached Lire 66.2 billion improving by 31.6 percent. As a percentage of sales, net income was 13.6 percent greater than the 12.9 percent reported in 1992.
 Commenting on the group's activity, Mr. Del Vecchio said: "We are satisfied with these results. The disadvantage which we incurred through 1993 when converting our double-digit increased net income denominated in Lire into US$, is almost over. From now on the comparison of our earnings in US$ will be easier. We will further develop our geographical expansion with the already announced Swiss and Dutch subsidiaries and a new Finnish joint venture. Once again, I believe that as soon as the economy shows signs of recovery, Luxottica's competitive position will be much stronger than at the start 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-price categories. The company's products, which are designed and manufactured in four facilities located throughout 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, Brazil and Switzerland, 51 percent-owned distributors in Belgium, Holland and Greece and a 50 percent-owned distributor in Japan.
 Consolidated Statements Of Income
 For the Third Quarter Percent
 Ended Sept. 30, 1992 1993 Change
 Millions of Lire(A)
 Net Sales 105,347 147,682 40.2
 Cost of Sales 33,787 44,411
 Gross Profit 71,560 103,271 44.3
 Selling, General and
 Administrative Expenses 46,587 65,191
 Income from Operations 24,973 38,080 52.5
 Interest Expense -1,859 -2,067
 Interest Income 1,607 1,453
 Other-Net 567 -416
 Income Before Provision
 for Income Taxes 25,288 37,050 46.5
 Provision for Income Taxes -11,772 -15,330
 Net Income Before Minority
 Interest 13,516 21,720
 Minority Interest-Net -270 -472
 Net Income 13,246 21,248 60.4
 Earnings Per ADS In Lire 294 477 62.0
 In US$ 0.26 0.30 15.2
 For the Nine Months Percent
 Ended Sept. 30, 1992 1993 Change
 Millions of Lire(A)
 Net Sales 388,846 485,409 24.8
 Cost of Sales 128,035 145,574
 Gross Profit 260,811 339,835 30.3
 Selling, General and
 Administrative Expenses 165,410 204,822
 Income from Operations 95,401 135,013 41.5
 Interest Expense -4,657 -5,578
 Interest Income 3,376 3,380
 Other-Net 2,349 -3,293
 Income Before Provision
 for Income Taxes 96,469 129,522 34.3
 Provision for Income Taxes 44,908 61,688
 Net Income Before Minority
 Interest 51,561 67,834
 Minority Interest-Net -1,262 -1,665
 Net Income 50,299 66,169 31.6
 Earnings Per Ads In Lire 1,116 1,484 33.0
 In US$ 0.94 0.96 2.1
 (A) Except per ADS amounts which are in Lire and US$.
 NOTE: Luxottica Group noted that the 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.
 -0- 11/3/93
 /CONTACT: Susi Belli, director of investor relations of Luxottica Group, 212-688-6840, or after Nov. 5, 011-39-437-62941; or Felicia Vonella of Dewe Rogerson Inc., 212-688-6840/

CO: Luxottica Group ST: IN: HOU SU: ERN

SH-TW -- NY023 -- 0093 11/03/93 11:12 EST
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Date:Nov 3, 1993

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