Amer Group reorganises Atomic
The Atomic group of companies, which form part of Amer Group's
Sports Division, and whose in-line skate business posted considerable
losses in 1997 are now being reorganised in order to improve their
results. The measures include significant personnel reductions, and in
addition part of the Köflach factory operations are to be integrated with
Atomic, whilst unprofitable product lines will be discontinued in all
product categories.
In the latter part of 1997, the Köflach factory, which manufactures
Atomic ski boots, Oxygen in-line skates and Koflach mountaineering
boots, had already started to adapt its production unit and its whole
organisation to the new market conditions which had resulted from a
collapse in demand for in-line skates, leading overstocking in its
principal markets, the United States and Germany. In addition, a trend
towards soft boots hampered Oxygen's in-line skates sales.
Streamlining measures have been continued this year, and overlapping
functions at Köflach and the Altenmarkt ski factory, especially in
administration and non-productive areas have been eliminated. As a
result of personnel reductions in these two units, the number of
positions in these areas has declined by about 25% or 85 since the
year-end. The total reduction in personnel in the past twelve months
has been approximately 230. Atomic group now employs 737 persons,
down from 966 in April last year.
In addition to these personnel reductions and transferring of staff from
non-productive areas, Atomic's profitability will be improved by
discontinuing unprofitable product lines in all product categories and
through increasing production efficiency, as well as by increased
international sourcing. For example, in late spring, Oxygen will launch
a new soft skate in the fitness sector sourced from Asia.
In addition to these actual reorganisation measures, Atomic will pay
special attention to a strong and consistent use of the Atomic brand
which is expected to generate synergies, mainly in marketing terms. A
new Atomic branded ski binding will be launched this spring.
Atomic's carving skis have been performing well in their markets. With
the Atomic brand, the company's objective for the next few years is to
gain a leading position both in the alpine and cross-country ski
markets, and as part of its strategy, the company continues to invest
resources in its successful racing team activities. With the Oxygen
brand, the company's objective is to strengthen its position in the
snowboard market. In the in-line skate business, the main target is to
improve profitability.
Mr Michael Schineis will continue as President of Atomic Group. Mr
David Taylor, previously Vice President, Finance, of Wilson Europe,
was appointed Atomic's Vice President, Finance, as of 1 March 1998.
Sports Division, and whose in-line skate business posted considerable
losses in 1997 are now being reorganised in order to improve their
results. The measures include significant personnel reductions, and in
addition part of the Köflach factory operations are to be integrated with
Atomic, whilst unprofitable product lines will be discontinued in all
product categories.
In the latter part of 1997, the Köflach factory, which manufactures
Atomic ski boots, Oxygen in-line skates and Koflach mountaineering
boots, had already started to adapt its production unit and its whole
organisation to the new market conditions which had resulted from a
collapse in demand for in-line skates, leading overstocking in its
principal markets, the United States and Germany. In addition, a trend
towards soft boots hampered Oxygen's in-line skates sales.
Streamlining measures have been continued this year, and overlapping
functions at Köflach and the Altenmarkt ski factory, especially in
administration and non-productive areas have been eliminated. As a
result of personnel reductions in these two units, the number of
positions in these areas has declined by about 25% or 85 since the
year-end. The total reduction in personnel in the past twelve months
has been approximately 230. Atomic group now employs 737 persons,
down from 966 in April last year.
In addition to these personnel reductions and transferring of staff from
non-productive areas, Atomic's profitability will be improved by
discontinuing unprofitable product lines in all product categories and
through increasing production efficiency, as well as by increased
international sourcing. For example, in late spring, Oxygen will launch
a new soft skate in the fitness sector sourced from Asia.
In addition to these actual reorganisation measures, Atomic will pay
special attention to a strong and consistent use of the Atomic brand
which is expected to generate synergies, mainly in marketing terms. A
new Atomic branded ski binding will be launched this spring.
Atomic's carving skis have been performing well in their markets. With
the Atomic brand, the company's objective for the next few years is to
gain a leading position both in the alpine and cross-country ski
markets, and as part of its strategy, the company continues to invest
resources in its successful racing team activities. With the Oxygen
brand, the company's objective is to strengthen its position in the
snowboard market. In the in-line skate business, the main target is to
improve profitability.
Mr Michael Schineis will continue as President of Atomic Group. Mr
David Taylor, previously Vice President, Finance, of Wilson Europe,
was appointed Atomic's Vice President, Finance, as of 1 March 1998.