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CHICAGO - Wrigley, the world's largest chewing gum maker, posted a 37 per cent rise in quarterly profit yesterday as improved performance in Germany and strong demand in China offset flat sales in North America.
The company, whose products include Life Savers sweets and Juicy Fruit gum, earned US$128.8 million ($189.4 million), or 46 cents per share, compared with a profit of US$94.1 million, or 33 cents per share, a year earlier.
Wrigley's board approved a 13 per cent increase in its quarterly dividend to 29 cents a share.
Sales rose 9.9 per cent to US$1.22 billion. Wrigley said sales in Europe and Asia each rose nearly 20 per cent. But sales in North America were flat as strong gains in sugar-free gum were offset by declines in sugar gum brands.
Wrigley shares were up 83 cents, or 1.6 per cent, at US$52.15 on the New York Stock Exchange following the announcement.
The stock jumped as much as 16 per cent on October 23 when the company named former Nike chief executive William Perez as the first person outside the Wrigley family to run the company.
But the stock has edged lower even as competitor Cadbury Schweppes has become more aggressive. Cadbury is to introduce its Trident gum in Great Britain, where Wrigley has 98.4 per cent of the market.
Wrigley has made several acquisitions in recent years to expand beyond chewing gum.
On January 23 it said it would buy an 80 per cent stake in privately held Russian chocolate maker A Korkunov, its first foray into the chocolate business after a failed 2002 bid to buy Hershey.
- REUTERS
