Puma issues profit warning on European slowdown

Associated Press

BERLIN (AP) — Sportswear maker Puma has warned that profits will fall sharply this year as business in Europe suffers in the wake of the continent's debt problems.

Puma, majority owned by French-based PPR SA, said Wednesday that first-half net earnings will be about 13 percent lower than a year ago, and that it will speed up cost-cutting efforts in response, incurring one-time charges of some €100 million ($122 million) in this year's second half.

As a result it said full-year earnings will "decrease significantly" from last year's €230.1 million.

Puma is also lowering its full-year revenue outlook — predicting growth in the mid-single digit range, down from the previous forecast of a high-single digit increase.