AMER GROUP INTERIM RESULTS FOR THE PERIOD 1 JANUARY TO 31 AUGUST 1998
1998-10-01, 16:00
Amer Group's performance was as expected in the period from January to August 1998. Operating profit amounted to FIM 74 million (1997 FIM 3 million). Losses before taxes and extraordinary items totalled FIM 8 million (1997: loss 72 million) and losses per share were FIM 0.40 (1997: losses per share FIM 3.20). Net sales amounted to FIM 3,000 million (FIM 3,023 million). The result before taxes and extraordinary items for 1998 is expected to improve compared to 1997. The costs of reorganising Atomic are of some concern, however.
NET SALES
Comparable net sales for the January to August 1998 period remained unchanged compared to the corresponding period in 1997. Sales declined by 15% in Japan and by 52% in Asia Pacific due to the difficult economic situation in Asia. These markets accounted for FIM 264 million of the Sports Division's net sales (FIM 370 million). The Sports Division accounted for 88% and Amer Tobacco 12% of the Group's net sales, respectively.
LOSSES REDUCED
Overall company performance improved according to plan. Losses before taxes and extraordinary items amounted to FIM 8 million (1997: FIM 72 million). The comparable losses for the January to August 1997 period were FIM 48 million.
The Golf Division's performance improved significantly and the operating result moved back into the black. The Racquet Division's sales declined in the US and Japan and profitability weakened, although remaining at a good level. The Team Sports Division's profitability continued to improve.
1998 has been a difficult year for the Atomic group of Companies due to major reorganisation undertaken and the in-line skate business' weak profitability. The Atomic Companies continued to trade clearly unprofitably in the period under review. However, the reorganisation is now near completion and the measures will be reflected in full in 1999's financial performance.
The Tobacco Division's profitability was unchanged compared to the same period in 1997.
The Group's net financing expenses increased due to high financing and hedging costs in Asia, totalling FIM 82 million. Net financing expenses include extraordinary interest income of FIM 7 million.
The relative proportion of the estimated tax charge for the full financial year has been charged against the results for the period.
Extraordinary items include FIM 16 million in expenses related to divested businesses.
For full report including tables, follow the enclosed link.
NET SALES
Comparable net sales for the January to August 1998 period remained unchanged compared to the corresponding period in 1997. Sales declined by 15% in Japan and by 52% in Asia Pacific due to the difficult economic situation in Asia. These markets accounted for FIM 264 million of the Sports Division's net sales (FIM 370 million). The Sports Division accounted for 88% and Amer Tobacco 12% of the Group's net sales, respectively.
LOSSES REDUCED
Overall company performance improved according to plan. Losses before taxes and extraordinary items amounted to FIM 8 million (1997: FIM 72 million). The comparable losses for the January to August 1997 period were FIM 48 million.
The Golf Division's performance improved significantly and the operating result moved back into the black. The Racquet Division's sales declined in the US and Japan and profitability weakened, although remaining at a good level. The Team Sports Division's profitability continued to improve.
1998 has been a difficult year for the Atomic group of Companies due to major reorganisation undertaken and the in-line skate business' weak profitability. The Atomic Companies continued to trade clearly unprofitably in the period under review. However, the reorganisation is now near completion and the measures will be reflected in full in 1999's financial performance.
The Tobacco Division's profitability was unchanged compared to the same period in 1997.
The Group's net financing expenses increased due to high financing and hedging costs in Asia, totalling FIM 82 million. Net financing expenses include extraordinary interest income of FIM 7 million.
The relative proportion of the estimated tax charge for the full financial year has been charged against the results for the period.
Extraordinary items include FIM 16 million in expenses related to divested businesses.
For full report including tables, follow the enclosed link.