LEGO
Operating profit rises by 70% in 2010 / Market share continues to increase / New moulding shop in Mexico
 New themes such as Lego Ninjago started the year well (Photo: Lego) |
Despite a slow recovery in the global toy market, toy manufacturer Lego (Billund / Denmark; www.lego.com) saw operating profits rise by 70% year-on-year to DKK 5.1 bn (EUR 686m) in 2010 as its worldwide market share increased to 5.9% at the end of the year, over one percentage point higher than at the end of 2009. Sales in 2010 increased to DKK 16.0 bn from DKK 11.7 bn in the previous year. The company said it captured market share in all of its markets, with most European countries showing double-digit growth. It now claims to be the world’s fourth largest toy manufacturer.
Lego City, “Duplo” and “Star Wars” brands proved particularly popular during the year, but almost all product lines sold more than expected, Lego said. The company’s new board game series, introduced in selected markets in 2009, was launched globally in 2010 and achieved significant sales growth. However, the new online game Lego Universe, which was launched towards the end of 2010, did not live up to its initial sales expectations and had only a limited effect on revenue.
Lego City, “Duplo” and “Star Wars” brands proved particularly popular during the year, but almost all product lines sold more than expected, Lego said. The company’s new board game series, introduced in selected markets in 2009, was launched globally in 2010 and achieved significant sales growth. However, the new online game Lego Universe, which was launched towards the end of 2010, did not live up to its initial sales expectations and had only a limited effect on revenue.
 Jørgen Vig Knudstorp (Photo: Lego) |
“The result is extremely satisfactory and is due in part to vigorous growth in markets such as the USA, UK, Russia and eastern Europe – all identified as growth markets for the company,” said Lego CEO Jørgen Vig Knudstorp.
In response to increased production and rising sales, Lego has enlarged its workforce to an average of 8,365 full time employees in 2010, an increase of 1,079 full time employees compared with 2009. A new moulding facility is under construction at the company’s production plant in Monterrey / Mexico. The first Lego bricks from this new plant will be moulded later in 2011.
In 2011, Lego forecasts modest growth in the global market for traditional toys, with sales expected to increase during the year, albeit at a lower rate than in 2010. “We expect growth both in our primary markets in North America and Europe and in emerging, rapidly growing markets, including China. Our classic product lines as well as new themes such as Lego Ninjago have got off to a good start in the new year,” Knudstorp added.
e-Service:
Lego annual report 2010 as a PDF document
In response to increased production and rising sales, Lego has enlarged its workforce to an average of 8,365 full time employees in 2010, an increase of 1,079 full time employees compared with 2009. A new moulding facility is under construction at the company’s production plant in Monterrey / Mexico. The first Lego bricks from this new plant will be moulded later in 2011.
In 2011, Lego forecasts modest growth in the global market for traditional toys, with sales expected to increase during the year, albeit at a lower rate than in 2010. “We expect growth both in our primary markets in North America and Europe and in emerging, rapidly growing markets, including China. Our classic product lines as well as new themes such as Lego Ninjago have got off to a good start in the new year,” Knudstorp added.
e-Service:
Lego annual report 2010 as a PDF document
14.03.2011 Plasteurope.com [218828-0]
Published on 14.03.2011
German version of this article...