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L'Oreal 2008 net profit falls 27 percent
www.ibj.com ^ | Mon. February 16 - 2009

Posted on 02/16/2009 6:46:05 PM PST by InvisibleChurch

French cosmetics maker L'Oreal said Monday that annual net profit fell 27 percent after disappointing American holiday sales, although the figures from a year earlier were boosted by a one-off gain.

The maker of Maybelline mascara and Lancome fragrances posted a net profit of euro1.95 billion ($2.49 billion), weighed down by euro115 million of special charges. The results compared to euro2.66 billion in 2007, when L'Oreal made a euro617 gain on the sale of shares in Sanofi-Aventis.

Excluding non-recurrent items, net profit rose to euro2.06 billion from euro2.04 billion in 2007. The company did not break out quarterly or half-yearly profit figures.

"In an environment made very difficult in 2008 by the economic crisis, L'Oreal is proving resilient," Chief Executive Officer Jean-Paul Agon said in a statement.

He gave no outlook for 2009, except to say the company will tackle the year "with realism, confidence and resolve."

L'Oreal shares closed down 1.1 percent at euro52.86 in Paris trading.

Sales rose 2.8 percent in the year to euro17.54 billion ($22.39 billion).

In the fourth quarter, sales rose 4.7 percent to euro4.63 billion. But on a like-for-like basis, revenue fell 0.6 percent dragged down by the luxury goods division.

The company said it noted a "clear deterioration" in North American sales in the fourth quarter, particularly in department stores.

In Europe, strict inventory management by distributors has affected sales, the company said.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: beauty; loreal
That's what they get for helping the Chinese get into space.
1 posted on 02/16/2009 6:46:05 PM PST by InvisibleChurch
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To: InvisibleChurch

Okay, either you’re kidding us, or you’ve confused L’Oreal with Loral the satellite company.


2 posted on 02/16/2009 6:48:01 PM PST by RichInOC (No! BAD Rich! (What'd I say?))
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To: InvisibleChurch
Because they're worth it!
3 posted on 02/16/2009 6:49:09 PM PST by stayathomemom (Cat herder and empty nester)
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To: InvisibleChurch

Watch the stock when the new Sharia/L’Oreal catalog comes out.


4 posted on 02/16/2009 6:50:25 PM PST by Westlander (Unleash the Neutron Bomb)
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To: InvisibleChurch

We go into a recession, and ugly breaks out all over.


5 posted on 02/16/2009 6:50:53 PM PST by Nachoman (Think of life as an adventure you don't survive.)
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To: stayathomemom

I wonder what their debt service looks like. Will this impair their ability to service it? Or are they relatively debt free?


6 posted on 02/16/2009 6:51:42 PM PST by lafroste (gravity is not a force. See my profile to read my novel absolutely free (I know, beyond shameless))
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To: InvisibleChurch
Some people are finding out that these companies use a lot of toxic chemicals that they want you to put in your eyes and on your skin, and often breathe them as well. There are other companies whose products are far less toxic than what Big Makeup puts out. :)

Check your cosmetics for safety here.

7 posted on 02/16/2009 6:54:45 PM PST by Yaelle
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To: InvisibleChurch

Let’s recap. Cosmetics must be the ultimate discretionary purchase. If times were really bad, women would switch to lower-end cosmetics or perhaps (egads!) even do without. So how did L’Oreal do in these perilous times where we are near global financial collapse?

Continuing operations (excluding one-time charges), profit rose to E2.06 B from E2.04 B in 2007. Annual revenue (sales) increased 2.8% over a year earlier. Fourth quarter revenue increased 4.7% over a year earlier.

Yep, times are sure tough around the globe.


8 posted on 02/16/2009 7:05:21 PM PST by ProtectOurFreedom
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To: Yaelle

http://www.all-creatures.org/saen/rabbit-06.jpg


9 posted on 02/16/2009 7:19:41 PM PST by Westlander (Unleash the Neutron Bomb)
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To: ProtectOurFreedom

When you are scared enough you’ll swallow anything, even socialism (or is it communism now?).


10 posted on 02/16/2009 9:48:34 PM PST by 1010RD (First Do No Harm)
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To: ProtectOurFreedom

yes


11 posted on 02/17/2009 7:18:07 AM PST by InvisibleChurch (Grace = unmerited favor; Mercy = punishment withheld)
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