David Beckham is one of the World Cup stars signed to Adidas

Net profits rose 37% during the first three months of 2006 when compared with the same period last year.

Adidas, which is making replica kits for teams including France, Argentina and host nation Germany, made 144m euros ($183m; �98.5m) in the period, ahead of a129m euros market estimate.

Sales rose 47%, but an order backlog for Reebok, bought last year, fell 14%.

'Major sponsors'

Adidas said it expects sales of football equipment alone to reach 1.2bn euros over the full year thanks to the World Cup, up from a previous forecast of 1bn euros.

And it hopes brand awareness from the month-long event will drive sales and narrow the gap between it and the world's biggest sports brand, Nike.

"We are well positioned for the World Cup Herbert Hainer Adidas chief executive Adidas share price

As well as supplying kits and boots, the German company is one of the tournament's major sponsors and has contracts with a string of high profile players, including England David Beckham and French striker David Trezeguet.

Adidas said its profits would grow by "a double-digit percentage rate" in 2006.

Last year it reported a net loss of four million euros, blaming the costs of its $3.8bn takeover of Reebok, which it hopes will give it a stronger foothold in the sports lifestyle market.

"We have made important progress in successfully integrating Reebok within Adidas Group and we are well positioned for the World Cup," Adidas's chief executive Herbert Hainer said.

Adidas shares climbed 3.3% on Monday after Mr Hainer gave an indication of the ahead-of-expectations performance.

The stock rose 2.6% further on Tuesday after the results were unveiled, to hit 172 euros.

"The figures were all good," said LBBW analyst Barbara Ambrus.