(Filed Under Financial and General Interest News). Hong Kong-based sourcing firm Li & Fung Ltd. reported a 15 percent decline in profits — from $278 million to $236 million — for the first half of 2011.
Li & Fung, which also announced the acquisition of costume jewelry designer Crimzon Rose and children’s apparel manufacturer Fishman & Tobin, reported that its many recent acquisitions led to higher operating expenses, which led to the fall in net profit. However, the company is expecting approximately $900 million in revenue from its 2011 acquisitions.
Growth in its three business units — distribution, logistics and trading — led a 33 percent rise in revenue to $8.8 billion.
Despite shares in the company dropping nearly 70 percent, Li & Fung’s president and chief executive Bruce Rockowitz stated the company is on track to reach a core operating profit of $1.5 billion by 2013.
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