LEGO upbeat despite losses

LEGO believes it has turned the corner despite net losses doubling to 1.9 billion Danish Kroner (£170m) after special items and the firm has finally decided to sell its theme park business.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

Total turnover fell to DKK7.9bn (£729.2m) from DKK8.4bn (£775.4m) in 2003, with Lego blaming intense price competition squeezing margins. The group said that it had also booked a writedown of DKK528m (£48.7m) after selling the Legoland parks. It also reported to be considering moving production from Denmark in a bid to cut costs.

Profits before special items and tax did improve to DKK103m (£9.5m) from a loss of DKK1.1bn (£101.5m) due to cost savings. But restructuring costs of half a billion and an impairment of DKK723m (£66.7m) on fixed assets resulted in the sharp rise in net loss, from DKK935m (£86.3m) in 2004.

CEO Jorgen Vig Knudstorp said: "It is a positive development that we managed to improve our result before special, non-recurring items by more than DKK1bn - and in global terms halted what had been a decline in our market. In 2004 we could tell the world: we're back in the game! During the year we cut our costs by more than DKK1.5bn, and we made substantial asset reductions. At the same time we increased our competitiveness by working closer with our customers and focusing more sharply on our core products. In view of prevailing market conditions, our fiscal result and stronger competitive position are a good step in the right direction. At the same time, we have laid the foundations for 2005 and our goal of restoring profitability in 2006."

This year the group expects unchanged revenues and a profit before special items and tax of around DKK200m crowns.

Related

5_Pocoyo.jpg

RC2 posts Q3 loss

Firm?s income drops by more than 40 per cent, announces increase and extension of stock repurchase program.

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.