Amer Grop Plc's interim report January-September 2004
2004-10-27, 13:33
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Sports equipment sales grew by 4%
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| - For the January - September 2004 period, Amer Group's net sales were EUR 797.8 million (January - September 2003: EUR 828.7 million). - Earnings before interest and taxes (EBIT) amounted to EUR 86.9 million (2003: EUR 97.9 million) and earnings per share were EUR 2.54 (2003: EUR 2.81). January - September 2003's EBIT includes a patent litigation settlement received of EUR 20.5 million. - Exiting from the tobacco business improved EBIT by EUR 11.4 million but reduced net sales by EUR 60.7 million compared to January - September last year. The sports equipment business's net sales grew by 4%. - Amer Group's sports equipment business's net sales are expected to grow by 5% during 2004. The sports equipment business's EBIT is also expected to grow compared to 2003 (excluding the 2003 patent litigation settlement). The Group's profit after tax is estimated to be maintained at last year's level.
*) 12 months rolling average
Roger Talermo, President & CEO, Amer Group:
"2004 is going to be a year of good growth for Amer Sports. In January - September, Amer Group's sports equipment business's net sales grew by 10% in local currency terms.
Activity has continued to be positive in the sports equipment market during the year. At Amer Group, growth has been especially strong in the Fitness Equipment Division with net sales in local currencies growing by 30% in the January - September period.
In the Winter Sports Division, net sales in local currencies grew by 10%. On the basis of the deliveries made as well as the level of orders received, we expect that the Winter Sports Division's net sales for the year as a whole, stated in local currencies, will grow by approximately 10%. Margins have been depressed slightly by sales growth being weighted towards lower margin product groups and in addition, the Company hasn't been able to pass on in full its euro-denominated manufacturing costs in terms of selling prices in North America due to the strong Euro.
In the Golf Division, the goal we set for this year is profitability. In January - September, net sales in local currencies declined 2%. The good initial progress made by the Division, which was evident in January - March, was not sustained as sell-through to consumers was slower than expected. Our goal in the Golf Division in 2004 continues to be a positive EBIT.
The Team Sports Division continued to grow and net sales in local currencies grew by 12%.
In Racquet Sports, net sales in local currencies grew by 5%. Suunto's net sales in local currencies increased by 5%.
During the remainder of the year, we will be strengthening our international sales and distribution network by establishing new Amer Sports' sales companies in Italy and Russia. Amer Sports' local organizations are responsible for the sales and distribution of the Group's sports equipment to the trade in their own markets. Including these two new companies, Amer Sports' own sales companies will be represented in 28 countries.
For the year as a whole we expect Amer Group's sports equipment business's net sales to grow by 5%. Excluding the 2003 patent litigation settlement of EUR 20.5 million, Amer Group's sports equipment business's EBIT is also expected to grow compared to 2003. The Group's profit after tax is estimated to be maintained at last year's level." | ||||||||||||||||||||||||||||||||||||||||||||||||||||