clarinews@clarinet.com (02/01/90)
STOUGHTON, Mass. (UPI) -- Reebok International Ltd. Wednesday credited growth in European sales and the splash made by its new, high-priced ``pump'' basketball shoe for more than a quadrupling of profits in the latest quarter. The company reported earnings of $35 million, or 30 cents a share, on a 14 percent increase in sales in the fourth quarter of 1989 which ended Dec. 31. That compared with $6.7 million, or 6 cents a share, in the last quarter of 1988. Foreign sales of $48 million were up 54 percent from $31.2 million the year before and the performance of all the company's lines in North America and Europe benefited from introduction of the pump, which carries a list price of $170 a pair in the United States, said Kenneth R. Lightcap, company spokesman. Chairman and chief executive officer Paul Fireman said the company ``gained tremendous product momentum'' with the introduction of the pump and three other products last year. Lightcap said the quarter's earnings were within company expectations but analysts, who had been more pessimistic, said the results were well ahead of what they had predicted. Marie J. de Lucia, who follows the stock for Tucker, Anthony, was estimating earnings of 22 cents a share in the quarter. ``The stock responded very well, it was up all day,'' de Lucia said. Just before the close of the New York Stock Exchange, Reebok stock was up $1.25 a share to $15.875. Edward Johnson, an analyst for Prescott Ball, said the stock might have climbed more but for ``a very leery market.'' For the year, earnings rose 28 percent to $175 million, or $1.53 a share, from $137 million, or $1.20 a share, in 1988. Sales of $1.82 billion were up 20 percent in 1989 from $1.79 billion the year before.