[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Thursday, 3 August 2006, 10:15 GMT 11:15 UK
World Cup spend hits Puma income
Puma sports wear for sale in Frankfurt shop
Puma wants to make inroads on rivals Adidas and Nike
German sports kit maker Puma saw profits drop in the second quarter after an expensive marketing, sales and sponsorship campaign for the World Cup.

But despite a 14.9% fall in net profit, the Herzogenaurach-based firm remains confident for the full year.

Puma sponsors football World Cup winners Italy and had 11 other teams at the tournament wearing its kit, ahead of arch-rival Adidas and Nike.

Net income fell to 50m euros ($64m: 34m), the company said.

During the football tournament in Germany, which ran from 9 June to 9 July, Puma ran a high-profile television campaign featuring World Cup legend Pele.

The firm also carried widespread advertising in other German media outlets, while its television campaign also ran on television in the UK.

'Excellent' performance

Among the 12 teams wearing Puma kit, many were emerging soccer nations and Puma marketed itself as a friend of Africa.

The company has traditionally lived in the shadow of bigger outfit Adidas - an official World Cup sponsor based in the same small southern German town.

Puma advertising
The Puma for Africa campaign ran during the World Cup

Puma said revenue in the quarter rose 38.2% to 547m euros, driven by sales of soccer gear around the World Cup.

It also said new orders were up by one third, with growth coming from all regions, including Europe.

Asia and Americas were the strongest regions, but the Europe, Middle East and Africa (EMEA) region also saw sales rise 8.9% on a year ago.

HVB analyst Uwe Weinreich said Puma's performance in EMEA had been "excellent".

Family fued

Puma is looking to expand its ranges of golf and outdoor sports equipment, and has done well from its leisure wear ranges.

The company was founded by Rudolf Dassler, who had originally started up a sports shoe business with his brother Adolf.

The pair fell out during World War II with the result that they never spoke again.

Rudolf, or Rudi, set up his rival firm, Puma, on one side of the river.

Adolf, or Adi, stayed put and shortened his name to form Adidas.




RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific