Performance Apparel Markets - Grado Zero Espace Srl
Performance Apparel Markets - Grado Zero Espace Srl
Performance Apparel Markets - Grado Zero Espace Srl
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<strong>Performance</strong> <strong>Apparel</strong> <strong>Markets</strong>, 1st quarter 2006<br />
Business update<br />
Business update<br />
CORPORATE RESTRUCTURING<br />
Russell has announced<br />
plans for<br />
restructuring—<br />
—which will cost<br />
US$45 mn-US$52 mn but<br />
save US$22 mn-US$26 mn<br />
annually after tax<br />
There are three main<br />
facets to the restructuring<br />
but the biggest savings will<br />
be through shifting<br />
manufacturing offshore<br />
RUSSELL CORPORATION<br />
USA-based Russell Corporation, a manufacturer of athletic wear, has<br />
announced restructuring plans to improve the company’s financial<br />
performance.<br />
The restructuring is expected to cost between US$45 mn and<br />
US$52 mn after tax but it will save the company between US$22 mn<br />
and US$26 mn annually after tax. The full impact of the costs and<br />
savings will be felt by 2008.<br />
There are three main facets to the restructuring:<br />
●<br />
●<br />
●<br />
a continued shift offshore of textile and apparel manufacturing;<br />
the completion of operational changes to Huffy Sports; and<br />
a reorganisation of sales and marketing within Russell Athletic.<br />
The biggest savings will be made through the shift of manufacturing<br />
to offshore locations.<br />
2,300 jobs will be lost<br />
worldwide, of which 1,700<br />
will go in the USA, but<br />
1,200 of the lost US jobs<br />
will be replaced in<br />
Honduras and Mexico<br />
The changes will result in<br />
fewer, larger facilities<br />
which will enable Russell to<br />
remain competitive<br />
On a worldwide basis, Russell expects around 2,300 positions to be<br />
lost.<br />
Of the worldwide total, 1,700 jobs will be lost in the USA.<br />
However, 1,200 of the US positions will be replaced in Honduras<br />
and Mexico.<br />
Russell’s chairman and chief executive officer, Jack Ward, explained<br />
the need for the restructuring by saying: “We are making these<br />
structural changes in our businesses to remain competitive in today’s<br />
global market place. These changes will result in our having fewer,<br />
larger facilities. We must move quickly to achieve lower costs, both<br />
in our operations and in our support areas.”<br />
CORPORATE STRATEGY<br />
Adidas has raised its revenue<br />
and earnings targets<br />
for the 2006-08 period<br />
ADIDAS GROUP: POST-REEBOK INTEGRATION STRATEGY<br />
Germany-based Adidas—the second largest sporting goods company<br />
in the world—has raised its targets for revenues and earnings for the<br />
three year period 2006-08.<br />
48 © Textiles Intelligence Limited