FRANKFURT (AFP) - Adidas-Salomon, the German maker of sportswear and equipment said it was optimistic about the outlook for its US operations and said it was likely to pay shareholders an increased dividend for 2004.
The group's new-found confidence pushed Adidas-Salomon shares to a six-year high of 19.58 euros in midday trading on the Frankfurt stock exchange, traders said.
Chairman Herbert Hainer said sales in North America, where the company has experienced problems over the past 18 months, should show growth of around five percent next year and growth of 10 percent or more in 2006.
Adidas-Salomon attributed the turnaround to a restructuring of its US operations and successful marketing campaigns, while analysts noted an overall improvement in general business conditions on the side of the Atlantic.
The German firm also revealed it signed a 10-year sponsorship agreement with the US professional soccer league, Major League Soccer, reportedly worth more than 100 million dollars (82 million euros).
Board member Erich Stamminger said Adidas now expected its global football-related sales to reach 900 million euros this year, up from around 800 million euros in 2003 and higher than its original forecast of more than 850 million euros in 2004.
Chairman Hainer also said he wanted to increase the company's dividend payment for 2004.
Adidas-Salomon paid a dividend of one euro per share for 2003.
In August, Adidas lifted its 2004 net profit growth forecast to "around 20 percent" from 10-15 percent previously, and said it expected full-year currency-adjusted sales to grow around five percent.
The improved outlook followed a set of strong second-quarter results, which Adidas said were driven by sales growth in all brands and regions.