Interim profit plunges 48pc at Yue Yuen

PUBLISHED : Thursday, 14 August, 2014, 9:18am
UPDATED : Thursday, 14 August, 2014, 10:39am

Sports shoe maker Yue Yuen Industrial declared on Thursday morning a 47.8 per cent plunge in profit for the first half compared with the same period last year.

Net income attributable to shareholders fell to US$101.4 million. One-off losses of US$116.7 million accounted for the decline.

In its interim results, the firm said US$25.2 million of its one-off losses were due to fair-value changes in derivatives, and US$90 million reflected increased contributions to a worker fund for social insurance benefits and housing.

The company issued a profit warning earlier this month spelling out the cost of steps it was taking in the aftermath of a week-long strike at its factory in Dongguan, Guangdong province, in April.

Yue Yuen said it would provide extra pay and benefits to the staff of that factory and its other plants on the mainland, resulting in a US$112 million hit to income in the first half.

Sales rose 6.8 per cent to US$3.9 billion, while operating income jumped 14.5 per cent to US$218.1 million.

The Hong Kong-listed Taiwanese firm makes sports shoes for brands including Adidas and Nike.