Home / Knowledge / News / Apparel/Garments / H1 operating profit at Li & Fung slips 9%
H1 operating profit at Li & Fung slips 9%
23
Aug '14
In what global apparel and fashion accessories supply chain specialist Li & Fung termed as mixed economic landscape, operating profit declined 9 percent in the interim results for first half of 2014.

Li & Fung said a mixed economic landscape and investments in overall infrastructure to improve efficiencies for the longer-term, including the recently established Vendor Support Services business unit, impacted core operating profit which decreased by 9 percent to US$ 227 million.

Total turnover of the Trading division at Li & Fung, which supplies to retailers like Walmart and Target, rose 3 percent year-on-year to US$ 8,710 million, while revenues at the Logistics business surged 44 percent, from the prior year period.

Profit attributable to shareholders, excluding loss of discontinued operations shot up by 45 percent from a year earlier, to US$ 210 million in the first six months of 2014, which also includes a non-cash gain of US$ 98 million on the write-backs of contingent considerations.

Excluding loss of discontinued operations in the January to June 2014 period, basic earnings per share too skyrocketed 45 percent year-on-year to US$ 0.25 from US$ 0.17 from same period in 2013.

“The successful spin-off of Global Brands has paved the way for Li & Fung to focus on our core strengths of trading and logistics, as the world’s leading global supply chain manager,” said William Fung, Chairman of Li & Fung.

He added, “As in previous three year plans, the first year in our plan is always a period of investment. 2014 is also an important period of transition. We have reorganized our business, strengthened our management team and set the stage for our next phase of organic growth.”

Spencer Fung, CEO said, “Our trading business continues to be solid and our logistics business delivered robust organic growth, particularly throughout Asia, through new business wins and successful cross-selling opportunities.”

The Board of Directors at Li & Fung approved an interim dividend of US$ 0.17 per share.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 2nd Dec 2016

Indian currency crisis impacts global cotton market

The currency crisis in India, marked by insufficient supply of new...

Huang Wei from Fiber Raw Material Dept of Sinopec Chemical Commercial Holding speaking at the Forum

Textiles | On 2nd Dec 2016

Huge potential for nylon consumption: Experts

There is huge potential for increase in nylon consumption said...

Apparel/Garments | On 2nd Dec 2016

Aditya Birla Group to establish apparel unit in Odisha

Aditya Birla Retail and Fashion Ltd. (ABFRL) is establishing a new...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search