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Economic turmoil, slow sales cut Reebok's earnings

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BOSTON, Oct 22 (Reuters) - Reebok International Ltd. , a distant No. 2 in the U.S. athletic footwear market to Nike Inc. , blamed worldwide economic turmoil and sluggish U.S. sales for a disappointing third-quarter.

"Our sales performance continues to be adversely affected by deteriorating economic conditions in Asia/Pacific and Latin America," Reebok Chief Financial Officer Ken Watchmaker told analysts. Sales in the Asia and Pacific region declined about 60 percent or $52 million in the quarter and Latin America sales were off 65 percent or about $30 million.

Watchmaker blamed fluctuations in currency exchange rates accounted for about 3 percent of the declines in the quarter and for the nine-month period declines of 5 percent. He also said the political and economic events in Russia were a concern.

Reebok, which fell 56 cents to close at $14.75 on the New York Stock Exchange, near its low for the year of $12.56, reported third-quarter earnings of 50 cents a share, in line with analysts' estimates, according to First Call.

Watchmaker said he saw a light at the end of the tunnel as cancellations of footwear orders began to abate during the third quarter.

"I believe these improving trends will continue," he said, adding, "But it will take a least a few more quarters to return to normal levels."

Reebok brand President and Chief Executive Officer Carl Yankowski, who joined the firm in August, announced a new organizational structure effective Jan. 1, creating six global strategic business units.

And Reebok Chairman Paul Fireman told analysts that if the National Basketball Association player lockout continued, "It will definitely be a detriment to the total business."

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