Adidas up on soccer World Cup prospects

FRANKFURT - Shares in German sporting goods maker Adidas rose 2 per cent yesterday on upbeat growth prospects for soccer products in 2006, when Germany hosts the World Cup finals.

By 10.59pm NZT, Adidas shares were up 2 per cent at 163.15 euros, making it the third biggest gainer on the benchmark DAX.

Traders linked the gains to comments by Adidas Chief Executive Herbert Hainer about growth prospects for the firm's soccer sportswear.

Hainer reiterated in several interviews that Adidas, which is planning to buy US rival Reebok, expected soccer sales to exceed 1 billion euros ($1.7 billion) this year.

An Adidas spokesman also confirmed comments that the firm expected soccer sales, which make up roughly a fifth of overall sales, to remain stable in 2007.

"This all looks great," said one trader in Frankfurt. "2006 will be an Adidas year with the soccer cup."

Hainer also told Germany's Euro am Sonntag newspaper that the firm is mulling a share split and will pay a 2005 dividend of at least 1.30 euros per share.

Through a split, the Adidas share could become more interesting for small investors, some of whom might be discouraged by the stock's current price.

A decision on a split would have to be approved by the company's annual general meeting on May 11.

- REUTERS