Reebok to Take 4th-Quarter Charge

Reebok International Ltd., the world’s No. 2 shoemaker, said it expects to take a fourth-quarter charge to cover a change in the value of a Brazilian venture and restructuring costs, which will cut fourth-quarter earnings by $10 million, or 18 cents a share. Reebok said the adjustment in the value of its joint venture in Brazil, the restructuring of some subsidiaries and the bankruptcy of one of its distributors all stem from slowing overseas economies and a general weakening in the market for athletic footwear and apparel. The Stoughton, Mass.-based company was expected to earn 4 cents a share by analysts surveyed by First Call Corp. Reebok earned 32 cents in the year-ago fourth quarter. Reebok didn’t specify whether the charge will cause it to report a loss for the quarter. Reebok shares rose 13 cents to close at $14.06 on the New York Stock Exchange. The company announced the charge after the close of trading.