Italian sportswear and athletic shoe firm Fila Holding SpA on Thursday said it swung to a third quarter profit as it benefited from cost-cutting measures and restructuring.

The Biella-based company posted net income of 2.8 million euros compared to a net loss of 35.7 million euros in the year-ago period. Worldwide revenues fell eight per cent to 264.3 million euros due to currency fluctuations.

Fila said total apparel sales climbed four per cent to 159.6 million euros but footwear sales plunged 22 per cent to 97.7 million euros. US sales rose 19 per cent to 101.9 million euros but Europe sales plummeted 22 per cent to 89.6 million euros.

Sales in the rest of the world slipped 16 per cent partly due to the axing of its Australian and Brazilian subsidiaries and lower sales in Latin America, despite a good performance in South Korea.

CEO Marco Isaia said: "I'm very pleased to inform that this quarter showed the results of two main streams of activities.

"On one side is the management's continued strong commitment to controlling costs. In this critical area, we are starting to consolidate the benefits of our restructuring and where necessary discontinuance of our direct presence in some of our markets.

"Also in this area, we are realizing the rewards of our 'product complexity' reduction program, which has led the company to a terrific rationalisation of our product offering, significantly reducing product development and sample costs and focusing the offer to the consumers on fewer products."

He added: "In Europe and Asia, we are consolidating a very positive first year of the Ferrari project that we believe will yield good sales results and will ease the reentry into the most desirable distribution channels."