Lego CEO forecasts 50 per cent profit growth in 2009

Jorgen Vig Knudstorp has said he hopes to post a 50 per cent global profit growth this year.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

Lego's CEO told CNBC: "I think we can continue this low double-digit growth for the foreseeable future."

Five years ago, when Knudstorp fist joined the firm, it was losing around $350 million a year. Knudstorp has since restructured the company, closed down plants and minimised packaging.

While many firms are outsourcing production to more cost-effective countries like China, Lego decided to take its operations back to the US.

Knudstorp explained: "The real economic profits are much less (when you outcome) because you lose sales, you have too much inventory, you've got too much working capital.

"So we found that for a number of reasons (it's) economically unattractive to manufacture in China to serve our major markets. China to us today is 40 times smaller than the US market. I think it's going to be another 15 to 20 years before China is a major market in the context of Lego."

The CEO also said he may be manufacturing in Asia in ten years, but in the near future, it plans to increase capacity in Mexico.

Related

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.