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Corporate Reports

Lego reports sales and profit boost

Toy maker Lego of Denmark has announced larger-than-expected sales and profits. With both traditional and new product lines, the company experienced one of its best business years in 2012.

Danish toy producer Lego on Thursday reported a 35-percent rise in profit for 2012. The unlisted company said full-year earnings had soared to 5.61 kroner (752 million euros, $992 million).

Lego management said increased profit came on the back of a 25-percent surge in sales globally, with revenues particularly strong in North America and across Asia. Crisis-stricken southern Europe remained the only trouble spot for Lego, the company said.

The firm added that the 2012 success was due to a good mixture of traditional and new product lines, ranging from its established Lego City and Lego Star Wars ranges to its new Lego Friends line aimed at girls.

Optimistic outlook

The Lego Friends collection had come under fire feminists who claimed the firm was promoting gender stereotyping. But that didn't prevent the range from outstripping production.

Toy maker Lego posts record results

"During its first year on the market, this product line has proved a huge success, and in spite of a considerable increase of production capacity on this particular line during last year, the very strong demand could not fully be met," the company said in a statement.

The Billund-based company has been rapidly expanding its factories in the Czech Republic and Mexico. Having a global workforce of 10,400 full-time employees, Lego said it expected continued sales growth in the current year, despite ongoing uncertainties in Europe.

hg /rc (dpa, AFP)

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