By Patrick Lamson-Hall
Li & Fung, the world’s largest sourcing firm, warned of a 40% fall in 2012 core operating profit today. The firm also named Dow Famulak as President of LF USA, replacing Richard Nixon Darling. Dow was formerly President of LF Europe.
The company’s operating income dropped 40% in 2012 due to restructuring costs and provisions related to the USA business, according to a statement released today. Other parts of the business (excluding LF USA) met expectations.
LF has been attempting a turnaround of its US business and reported in August that it was taking longer than expected. They predicted that this would impact core operating profit.
The company also says that a “reduction in the number of brands distributed in the USA” had a negative impact on margins in 2012. Profits are not likely to be greater than those in 2011.
LF has a target of a $1.5 billion core operating profit by 2013, according to it’s three year plan. They will release full results for 2012 in March.