Amer Group results for the 1999 Financial year
2000-02-09, 13:30
Net sales EUR 825.7 million (1998: 745.5), up by 11%
Operating profit EUR 58.5 million (1998: 22.3), up by 162%
Profit before extraordinary items EUR 43.5 million (1998: 5.4)
Adjusted earnings per share EUR 1.72 (1998: 0.11)
Dividend proposed FIM 3.50/EUR 0.59 (1998: 1.00/0.17)
Net sales and results
The Group's net sales totalled EUR 825.7 million (1998: EUR 745.5 million), up 11%. Geographically, 51% of net sales were generated in North America, 11% in Finland, 25% in other European countries and 13% in the Rest of the World.
The Group's operating profit amounted to EUR 58.5 million, up 162% compared to 1998. Profit before extraordinary items totalled FIM 43.5 million (1998: EUR 5.4 million) and net profit to EUR 41.8 million (EUR 0.1 million).
Net financing expenses were down 11% at EUR 15.0 million, repre-senting 1.8% of net sales.
Taxes for the 1999 financial year totalled EUR 1.9 million, and were reduced by EUR 3.9 million change in deferred tax.
Return on capital employed improved significantly from 4.6% in 1998 to 12.0% in 1999. This was due not only to improved results but also to measures taken to reduce working capital through improved supply chain management. Return on equity also improved considerably from last year's 0.7% to 11.4% in 1999.
Adjusted earnings per share were EUR 1.72 (1998: EUR 0.11).
CONSOLIDATED RESULTS
Operating profit EUR 58.5 million (1998: 22.3), up by 162%
Profit before extraordinary items EUR 43.5 million (1998: 5.4)
Adjusted earnings per share EUR 1.72 (1998: 0.11)
Dividend proposed FIM 3.50/EUR 0.59 (1998: 1.00/0.17)
- Amer Group's profitability improved significantly in 1999, as a result of all businesses improving their performance. The Group's net sales were up by 11% and operating profit up by 162%.
- Atomic improved its performance considerably, with its operating results moving clearly into the black. Operating profit totalled EUR 15.1 million, compared to a loss of EUR 11.8 million in 1998. In addition to sales growth, profitability was boosted by previous measures taken to reorganise operations, especially the in-line skate business, which are now being fully reflected in the results.
- The fastest growing product categories were alpine skis (34%), premium golf clubs (24%), performance tennis racquets (20%) and baseball gloves (25%).
- In late 1999 the Group expanded its operations by acquiring Suunto, a manufacturer of in particular outdoor and diving in-struments. Suunto's expertise is expected to offer Amer Group new opportunities to develop its existing products. Suunto is not in-cluded in the Group's 1999 consolidated statement of income, but its balance sheet has been consolidated with Amer Group's con-solidated balance sheet.
- The Board of Directors is recommending to the Annual General Meeting that a dividend of FIM 3.50 (EUR 0.59) per share be paid for the 1999 financial year, representing 34% of 1999 net profits. 1998's dividend was FIM 1.00 (EUR 0.17) a share. The record date is 13 March 2000. The Board proposes that the dividend be paid on 20 March 2000.
Net sales and results
The Group's net sales totalled EUR 825.7 million (1998: EUR 745.5 million), up 11%. Geographically, 51% of net sales were generated in North America, 11% in Finland, 25% in other European countries and 13% in the Rest of the World.
The Group's operating profit amounted to EUR 58.5 million, up 162% compared to 1998. Profit before extraordinary items totalled FIM 43.5 million (1998: EUR 5.4 million) and net profit to EUR 41.8 million (EUR 0.1 million).
Net financing expenses were down 11% at EUR 15.0 million, repre-senting 1.8% of net sales.
Taxes for the 1999 financial year totalled EUR 1.9 million, and were reduced by EUR 3.9 million change in deferred tax.
Return on capital employed improved significantly from 4.6% in 1998 to 12.0% in 1999. This was due not only to improved results but also to measures taken to reduce working capital through improved supply chain management. Return on equity also improved considerably from last year's 0.7% to 11.4% in 1999.
Adjusted earnings per share were EUR 1.72 (1998: EUR 0.11).
CONSOLIDATED RESULTS
| EUR million | 1999 | 1998 | % |
| NET SALES | 825.7 | 745.5 | 11 |
| Depreciation | 33.0 | 29.5 | |
| OPERATING PROFIT | 58.5 | 22.3 | 162 |
| Net financing expenses | -15.0 | -16.9 | |
| PROFIT BEFORE EXTRAORDINARY ITEMS | 43.5 | 5.4 | |
| Extraordinary items | 0.0 | -2.7 | |
| PROFIT BEFORE TAXES | 43.5 | 2.7 | |
| Taxes | -1.9 | -2.8 | |
| Minority interest | 0.2 | 0.2 | |
| PROFIT | 41.8 | 0.1 | |
| Adjusted earnings per share, EUR | 1.72 | 0.11 | |
| Adjusted earnings per share, diluted, EUR | 1.69 | ||
| Adjusted average number of shares in issue, EUR million | 24.3 | 24.3 | |
| Adjusted equity per share, EUR | 15.38 | 13.90 | |
| Average rates used: EUR 1.00 = USD | 1.07 | 1.11 | |
| AVERAGE PERSONNEL | 3.834 | 3.990 |
NET SALES BY DIVISION
| 1999 | 1998 | % | |
| Golf | 224.9 | 210.3 | 7 |
| Racquet Sports | 225.1 | 196.3 | 15 |
| Team Sports | 143.1 | 129.2 | 11 |
| Wilson, total | 593.1 | 535.8 | 11 |
| Atomic | 139.1 | 121.4 | 15 |
| Amer Tobacco | 93.5 | 88.3 | 6 |
| Net sales, total | 825.7 | 745.5 | 11 |
| Gross sales, total | 1.395.5 | 1.290.4 | 8 |
| 1999 | 1998 | % | |
| Golf | 12.2 | 8.8 | 39 |
| Racquet Sports | 23.5 | 18.6 | 26 |
| Team Sports | 6.7 | 4.0 | 68 |
| Wilson, total | 42.4 | 31.4 | 35 |
| Atomic | 15.1 | -11.8 | |
| Amer Tobacco | 9.6 | 8.0 | 20 |
| Headquarters | -8.6 | -5.3 | |
| Total | 58.5 | 22.3 | 162 |
Divisional highlights
Wilson's net sales were up 11% at EUR 593.1 million. Sales increased by 10% in the US, by 7% in Europe, by 23% in Japan, by 8% in Canada and by 29% in Asia-Pacific, respectively. In Latin America net sales were up by 5%. With the exception of Europe and Latin America, the company's profitability improved in all markets. The total value of Wilson branded licensed products sold globally amounted to EUR 246.8 million.
The Golf Division's net sales grew by 7% and profitability improved. Sales of premium clubs increased by 24% fuelled by strong sales of Fat Shaft irons. Operating profit amounted to EUR 12.2 million (1998: EUR 8.8 million). Wilson's commercial club sales declined in line with the market. Premium ball sales decreased slightly while commercial ball sales increased by 22%.
The Racquet Division's net sales were up 15% and its profitability improved. Operating profit amounted to EUR 23.5 million (1998: EUR 18.6 million). The improvement reflected strong sales of Hyper Carbon racquets and tennis shoes. Performance racquet sales were up 20% compared with last year. Wilson's position as the leading brand in tennis continued to strengthen and its market share in the US reached 46%. In Europe, Wilson's market share remained unchanged. Globally Wilson continues to be the No. 1 brand in tennis equipment.
Wilson strengthened further its already strong market position in team sports product categories in the US. The Team Sports Division's net sales were up 11%. Its profitability improved significantly, reflecting growth in the sales of high-margin game improvement products and improved sourcing. Operating profit to-talled EUR 6.7 million (EUR 4.0 million).
The Winter Sports Division's net sales increased by 15% and to-talled EUR 139.1 million, and profitability improved considerably. Sales of alpine skis and bindings grew more rapidly than expected, and market shares increased. Sales of alpine skis were up 34%. The division's overall results moved clearly into the black. Operating profit totalled EUR 15.1 million, compared to a loss of EUR 11.8 million in 1998. The profitability improvement was due not only to increased sales but also to reorganisation measures carried out previously, especially at the in-line skate business. Atomic is the second largest brand in alpine skis globally.
Amer Tobacco's net sales rose 6% to EUR 93.5 million. Operating profit amounted to EUR 9.6 million, up 20% from EUR 8.0 million. Cigarette deliveries grew by 2% and the company's Finnish cigarette market share reached an all-time high of 76%. A total of EUR 402.5 million was paid in excise tax. The licensing agreement with Philip Morris was renewed in January 2000. The agreement, valid until year-end 2005, will continue thereafter by mutual agreement. The contents of the agreement remain otherwise unchanged.
Changes in corporate structure
On 1 October 1999, Amer Group acquired a 26.3% holding in Suunto Oyj and simultaneously made a public offer for the company's entire share capital. The Group offered to buy Suunto's entire share capital of 4,018,900 shares in issue for EUR 10.00 a share. A similar offer was made for Suunto's warrants and new shares subscribed for as a result of exercising the warrants. The public offer began on 25 October and expired on 19 November 1999. On 8 November the offer was raised to EUR 11.50 a share. As a result of the public offer, the Group's ownership in Suunto reached 96.55%. The offer was extended until 30 November 1999, after which a redemption offer, valid until 10 January 2000, was made for the remaining shares. As a result of the public offer and the redemption offer, together with other Suunto shares purchased by the Group from the stock market, the Group's holding reached 99.74%. In January arbitral proceedings were instituted to redeem those shares in Suunto which were not transferred to Amer Group as a result of the redemption offer. Amer Group will, during spring 2000, apply for the cancellation of Suunto Oyj's shares' listing on the Helsinki Exchanges. The consideration for the shares acquired through the redemption offer was paid on 9 December 1999. Suunto's balance sheet has been consolidated with Amer Group's consolidated balance sheet at the year end.
At the end of December, Konalan Hankasuo Oy and Farming Oy were merged within Amer Group Plc.
In January 2000 the Group acquired the operations of DeMarini Sports Inc., based in Hillsboro, Oregon. The company develops, manufactures and markets premium baseball and softball bats. The company's opera-tions became a part of Wilson's Team Sports Division with immediate effect.
Capital expenditure
The Group's gross capital expenditure totalled EUR 78.7 million (EUR 13.0 million), of which EUR 65 million relating to Suunto's shares. Capital expenditure in other fixed assets totalled EUR 13.7 million (EUR 13.0 million).
Wilson's gross capital expenditure amounted to EUR 8.6 million, mainly accounted for by investments in production automation sys-tems at the company's golf ball factory in Humboldt, Tennessee. Atomic's gross capital expenditure totalled EUR 3.4 million, ac-counted for by new moulds and other production equipment. Relating mainly to increasing packaging capacity, Amer Tobacco's capital expenditure amounted to EUR 1.4 million.
Fixed asset disposals totalled EUR 5.2 million.
Research and development
Of the EUR 10.9 million R&D expenditure, representing 1.3% of the Group's net sales, EUR 8.5 million related to Wilson and EUR 2.4 million to Atomic.
Finance
During the financial year Amer Group purchased a total of USD 4.1 million nominal of the 1993 convertible subordinated bonds. The remaining total of USD 31.83 million was repurchased on 11 January 2000. The bonds purchased during 1999 and in early 2000 represented 1,885,502 A shares, or 7.8% of the total number of shares in issue.
Due to its strong cash flow, Amer Group took no significant new funding actions during the financial year. The company's financial position remains strong, and Suunto's shares were paid for out of cash flow. The equity ratio stood at 43.9% (1998: 48.7%) at the 1999 year-end. The decrease in the equity ratio was due to the Suunto acquisition and also to the significant strengthening of the US dollar. Gearing was 39% (1998: 38%). The Group's year-end net debt totalled EUR 151.7 million (1998: EUR 131.3 million). The Group's liquidity remained good, with liquid assets totalling EUR 69.8 million at the 1999 year-end.
Personnel
The number of Amer Group employees increased by 628 to 4,223 at the end of the financial year (1998: 3,595), including Suunto's 614 personnel. The average number of employees during 1999 was 3,834 (1998: 3,990). At the year end Wilson had a total of 2,625 employees (1998: 2,621). Atomic's personnel totalled 591 at the end of the year (578). The parent company, Amer Group Plc, had 42 employees at the year end (1998: 45), the average for the year being 43 (1998: 47).
The number of employees totalled 1,927 in the US, with 707 in Finland, 564 in Austria and 1,025 in the Rest of the World.
Share price
The Company had 11,877 registered shareholders at the end of the financial year. Nominees accounted for 50% of the total shares in issue (1998: 48%).
Amer's share price performed well, rising 127% during the financial year. Some 15 million shares or 61% of those in issue were traded on the Helsinki Exchanges and 5 million shares or 20% of those in issue on the London Stock Exchange. The share price was at its lowest in January and at its highest in December. In Helsinki, the share price high was EUR 20.40 and the low EUR 8.50, averaging EUR 14.31. In London, the prices were GBP 12.53, 6.00 and 9.36, respectively.
The Company's market capitalisation stood at EUR 490 million at the year end.
The Board of Directors had no outstanding authorisations to issue shares at the year end. The authorisations to purchase, to dispose of and to sell the Company's own shares had not been exercised during the financial year.
Euro and Y2K
As of 1 January 1999 Amer Group's domestic currency has been the Euro. In business operations the Euro has been introduced based on customer requirements. A significant number of our European customers wish to continue settling their invoices in local cur-rencies and the shift to the Euro is therefore expected to take place only gradually.
Group Treasury adopted the Euro at the beginning of 1999. Group companies in the EMU countries will introduce the Euro as their accounting currency gradually by the end of 2001.
Year 2000 passed according to plan and no IT problems were en-countered and no significant expenses incurred.
2000 prospects
No major changes are expected in global demand for sporting goods during the current year. The US market is expected to remain sta-ble. In Europe, there are signs of a slight improvement. The Japanese market is expected to remain at its currently depressed level, while demand for sporting goods is expected to begin re-covering slowly in Asia.
Despite these relatively soft market conditions, we continue to aim at improving our performance and to seek profitable growth, principally through increasing our core products' market shares. We also have scope to improve our performance through further en-hancing sourcing and supply chain management. In addition, we continue to target growth opportunities through acquisitions that are in line with Group strategy.
During the current year, we will also focus on integrating Suunto's operations into the Group, whilst developing their strategy.
GEOGRAPHIC BREAKDOWN OF NET SALES
Wilson's net sales were up 11% at EUR 593.1 million. Sales increased by 10% in the US, by 7% in Europe, by 23% in Japan, by 8% in Canada and by 29% in Asia-Pacific, respectively. In Latin America net sales were up by 5%. With the exception of Europe and Latin America, the company's profitability improved in all markets. The total value of Wilson branded licensed products sold globally amounted to EUR 246.8 million.
The Golf Division's net sales grew by 7% and profitability improved. Sales of premium clubs increased by 24% fuelled by strong sales of Fat Shaft irons. Operating profit amounted to EUR 12.2 million (1998: EUR 8.8 million). Wilson's commercial club sales declined in line with the market. Premium ball sales decreased slightly while commercial ball sales increased by 22%.
The Racquet Division's net sales were up 15% and its profitability improved. Operating profit amounted to EUR 23.5 million (1998: EUR 18.6 million). The improvement reflected strong sales of Hyper Carbon racquets and tennis shoes. Performance racquet sales were up 20% compared with last year. Wilson's position as the leading brand in tennis continued to strengthen and its market share in the US reached 46%. In Europe, Wilson's market share remained unchanged. Globally Wilson continues to be the No. 1 brand in tennis equipment.
Wilson strengthened further its already strong market position in team sports product categories in the US. The Team Sports Division's net sales were up 11%. Its profitability improved significantly, reflecting growth in the sales of high-margin game improvement products and improved sourcing. Operating profit to-talled EUR 6.7 million (EUR 4.0 million).
The Winter Sports Division's net sales increased by 15% and to-talled EUR 139.1 million, and profitability improved considerably. Sales of alpine skis and bindings grew more rapidly than expected, and market shares increased. Sales of alpine skis were up 34%. The division's overall results moved clearly into the black. Operating profit totalled EUR 15.1 million, compared to a loss of EUR 11.8 million in 1998. The profitability improvement was due not only to increased sales but also to reorganisation measures carried out previously, especially at the in-line skate business. Atomic is the second largest brand in alpine skis globally.
Amer Tobacco's net sales rose 6% to EUR 93.5 million. Operating profit amounted to EUR 9.6 million, up 20% from EUR 8.0 million. Cigarette deliveries grew by 2% and the company's Finnish cigarette market share reached an all-time high of 76%. A total of EUR 402.5 million was paid in excise tax. The licensing agreement with Philip Morris was renewed in January 2000. The agreement, valid until year-end 2005, will continue thereafter by mutual agreement. The contents of the agreement remain otherwise unchanged.
Changes in corporate structure
On 1 October 1999, Amer Group acquired a 26.3% holding in Suunto Oyj and simultaneously made a public offer for the company's entire share capital. The Group offered to buy Suunto's entire share capital of 4,018,900 shares in issue for EUR 10.00 a share. A similar offer was made for Suunto's warrants and new shares subscribed for as a result of exercising the warrants. The public offer began on 25 October and expired on 19 November 1999. On 8 November the offer was raised to EUR 11.50 a share. As a result of the public offer, the Group's ownership in Suunto reached 96.55%. The offer was extended until 30 November 1999, after which a redemption offer, valid until 10 January 2000, was made for the remaining shares. As a result of the public offer and the redemption offer, together with other Suunto shares purchased by the Group from the stock market, the Group's holding reached 99.74%. In January arbitral proceedings were instituted to redeem those shares in Suunto which were not transferred to Amer Group as a result of the redemption offer. Amer Group will, during spring 2000, apply for the cancellation of Suunto Oyj's shares' listing on the Helsinki Exchanges. The consideration for the shares acquired through the redemption offer was paid on 9 December 1999. Suunto's balance sheet has been consolidated with Amer Group's consolidated balance sheet at the year end.
At the end of December, Konalan Hankasuo Oy and Farming Oy were merged within Amer Group Plc.
In January 2000 the Group acquired the operations of DeMarini Sports Inc., based in Hillsboro, Oregon. The company develops, manufactures and markets premium baseball and softball bats. The company's opera-tions became a part of Wilson's Team Sports Division with immediate effect.
Capital expenditure
The Group's gross capital expenditure totalled EUR 78.7 million (EUR 13.0 million), of which EUR 65 million relating to Suunto's shares. Capital expenditure in other fixed assets totalled EUR 13.7 million (EUR 13.0 million).
Wilson's gross capital expenditure amounted to EUR 8.6 million, mainly accounted for by investments in production automation sys-tems at the company's golf ball factory in Humboldt, Tennessee. Atomic's gross capital expenditure totalled EUR 3.4 million, ac-counted for by new moulds and other production equipment. Relating mainly to increasing packaging capacity, Amer Tobacco's capital expenditure amounted to EUR 1.4 million.
Fixed asset disposals totalled EUR 5.2 million.
Research and development
Of the EUR 10.9 million R&D expenditure, representing 1.3% of the Group's net sales, EUR 8.5 million related to Wilson and EUR 2.4 million to Atomic.
Finance
During the financial year Amer Group purchased a total of USD 4.1 million nominal of the 1993 convertible subordinated bonds. The remaining total of USD 31.83 million was repurchased on 11 January 2000. The bonds purchased during 1999 and in early 2000 represented 1,885,502 A shares, or 7.8% of the total number of shares in issue.
Due to its strong cash flow, Amer Group took no significant new funding actions during the financial year. The company's financial position remains strong, and Suunto's shares were paid for out of cash flow. The equity ratio stood at 43.9% (1998: 48.7%) at the 1999 year-end. The decrease in the equity ratio was due to the Suunto acquisition and also to the significant strengthening of the US dollar. Gearing was 39% (1998: 38%). The Group's year-end net debt totalled EUR 151.7 million (1998: EUR 131.3 million). The Group's liquidity remained good, with liquid assets totalling EUR 69.8 million at the 1999 year-end.
Personnel
The number of Amer Group employees increased by 628 to 4,223 at the end of the financial year (1998: 3,595), including Suunto's 614 personnel. The average number of employees during 1999 was 3,834 (1998: 3,990). At the year end Wilson had a total of 2,625 employees (1998: 2,621). Atomic's personnel totalled 591 at the end of the year (578). The parent company, Amer Group Plc, had 42 employees at the year end (1998: 45), the average for the year being 43 (1998: 47).
The number of employees totalled 1,927 in the US, with 707 in Finland, 564 in Austria and 1,025 in the Rest of the World.
Share price
The Company had 11,877 registered shareholders at the end of the financial year. Nominees accounted for 50% of the total shares in issue (1998: 48%).
Amer's share price performed well, rising 127% during the financial year. Some 15 million shares or 61% of those in issue were traded on the Helsinki Exchanges and 5 million shares or 20% of those in issue on the London Stock Exchange. The share price was at its lowest in January and at its highest in December. In Helsinki, the share price high was EUR 20.40 and the low EUR 8.50, averaging EUR 14.31. In London, the prices were GBP 12.53, 6.00 and 9.36, respectively.
The Company's market capitalisation stood at EUR 490 million at the year end.
The Board of Directors had no outstanding authorisations to issue shares at the year end. The authorisations to purchase, to dispose of and to sell the Company's own shares had not been exercised during the financial year.
Euro and Y2K
As of 1 January 1999 Amer Group's domestic currency has been the Euro. In business operations the Euro has been introduced based on customer requirements. A significant number of our European customers wish to continue settling their invoices in local cur-rencies and the shift to the Euro is therefore expected to take place only gradually.
Group Treasury adopted the Euro at the beginning of 1999. Group companies in the EMU countries will introduce the Euro as their accounting currency gradually by the end of 2001.
Year 2000 passed according to plan and no IT problems were en-countered and no significant expenses incurred.
2000 prospects
No major changes are expected in global demand for sporting goods during the current year. The US market is expected to remain sta-ble. In Europe, there are signs of a slight improvement. The Japanese market is expected to remain at its currently depressed level, while demand for sporting goods is expected to begin re-covering slowly in Asia.
Despite these relatively soft market conditions, we continue to aim at improving our performance and to seek profitable growth, principally through increasing our core products' market shares. We also have scope to improve our performance through further en-hancing sourcing and supply chain management. In addition, we continue to target growth opportunities through acquisitions that are in line with Group strategy.
During the current year, we will also focus on integrating Suunto's operations into the Group, whilst developing their strategy.
GEOGRAPHIC BREAKDOWN OF NET SALES
| 1999 | 1998 | % | |
| North America | 420.8 | 386.3 | 9 |
| Finland | 89.2 | 85.2 | 5 |
| Rest of Europe | 205.8 | 178.0 | 16 |
| Japan | 54.4 | 47.2 | 15 |
| Asia Pacific | 24.2 | 18.1 | 34 |
| Other | 31.3 | 30.7 | 2 |
| Group, total | 825.7 | 745.5 | 11 |
CONSOLIDATED CASH FLOW STATEMENT
| 1999 | 1998 | |
| Net cash from operating activities | 119.9 | 54.6 |
| Net cash from investing activities | -70.7 | 5.1 |
| Net cash from financing activities | -32.5 | -63.9 |
| Net increase/decrease in cash and cash equivalents | 16.7 | -4.2 |
| Cash and cash equivalents at 1 Jan | 53.1 | 54.6 |
| Cash and cash equivalents at 31 Dec | 69.8 | 50.4 |
CONSOLIDATED BALANCE SHEET
| Assets | 31 Dec 1999 | 31 Dec 1998 |
| Group goodwill | 201.1 | 143.6 |
| Other intangible fixed assets | 20.4 | 22.4 |
| Tangible fixed assets | 163.2 | 165.7 |
| Long-term investments | 33.2 | 13.9 |
| Inventories and work in progress | 141.7 | 132.5 |
| Receivables | 245.8 | 186.3 |
| Marketable securities | 18.3 | 5.8 |
| Cash and cash equivalents | 51.5 | 44.6 |
| Assets | 875.2 | 714.8 |
| Shareholders' equity and li-abilities | 31 Dec 1999 | 31 Dec 1998 |
| Shareholders' equity | 374.2 | 338.1 |
| Minority interest | 10.1 | 10.0 |
| Provision for contingent losses | 4.1 | 3.4 |
| Long-term interest-bearing liabilities | 119.6 | 121.8 |
| Other long-term liabilities | 34.6 | 3.9 |
| Short-term interest-bearing liabilities | 101.9 | 60.0 |
| Other short-term liabilities | 230.7 | 177.6 |
| Shareholders' equity and li-abilities | 875.2 | 714.8 |
| Equity ratio | 43.9 % | 48.7 % |
| EUR 1.00 = USD | 1.00 | 1.17 |
| SHAREHOLDERS' EQUITY | Share capital | Premium fund | Revaluation fund | Retained earnings | Total |
| Balance at 31 Dec 1997 | 82.7 | 183.7 | 3.4 | 74.9 | 344.7 |
| Dividend | - | - | |||
| Exchange differences | -1.1 | -1.1 | |||
| Other increase/decrease | -0.4 | -5.2 | -5.6 | ||
| Net profit | 0.1 | 0.1 | |||
| Balance at 31 Dec 1998 | 82.7 | 183.7 | 3.0 | 68.7 | 338.1 |
| Dividend | -4.1 | -4.1 | |||
| Exchange differences | 3.1 | 3.1 | |||
| Other increase/decrease | -0.1 | -4.6 | -4.7 | ||
| Net profit | 41.8 | 41.8 | |||
| Balance at 31 Dec 1999 | 82.7 | 183.7 | 2.9 | 104.9 | 374.2 |
CONTINGENT LIABILITIES AND SECURED ASSETS, CONSOLIDATED
| 31 Dec 1999 | 31 Dec 1998 | |
| Charges on assets | 22.1 | 18.2 |
| Mortgages pledged | 39.0 | 23.3 |
| Guarantees | 2.6 | 2.9 |
| Liabilities for leasing and rental agreements | 42.9 | 35.1 |
| Other liabilities | 46.0 | 26.1 |
There are no guarantees or contingencies given for the management of the company, the shareholders or the associated companies.
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS
| 31 Dec 1999 | 31 Dec 1998 | |
| Foreign exchange forward con-tracts | 330.7 | 454.8 |
| Forward rate agreements | 100.0 | 471.4 |
QUARTERLY BREAKDOWN OF NET SALES
| EUR million | 1999 | 1998 | ||||||
| I | II | III | IV | I | II | III | IV | |
| NET SALES | ||||||||
| Golf | 58.0 | 81.8 | 47.0 | 38.1 | 56.0 | 79.2 | 39.6 | 35.5 |
| Racquet | 55.6 | 64.8 | 58.8 | 45.9 | 51.8 | 56.9 | 46.0 | 41.6 |
| Team Sports | 42.3 | 32.1 | 32.9 | 35.8 | 41.4 | 27.3 | 29.9 | 30.6 |
| Wilson total | 155.9 | 178.7 | 138.7 | 119.8 | 149.2 | 163.4 | 115.5 | 107.7 |
| Atomic | 19.1 | 12.0 | 47.4 | 60.6 | 20.2 | 14.5 | 40.0 | 46.7 |
| Amer Tobacco | 20.6 | 24.5 | 24.7 | 23.7 | 18.6 | 23.6 | 23.8 | 22.3 |
| Total | 195.6 | 215.2 | 210.8 | 204.1 | 188.0 | 201.5 | 179.3 | 176.7 |
|
QUARTERLY BREAKDOWN OF OPERATING PROFIT/LOSS |
||||||||
| Wilson | 9.2 | 22.8 | 8.5 | 1.9 | 5.7 | 20.1 | 5.3 | 0.3 |
| Atomic | -3.8 | -3.7 | 8.3 | 14.3 | -8.1 | -8.1 | -0.2 | 4.6 |
| Amer Tobacco | 1.8 | 3.1 | 2.3 | 2.4 | 1.6 | 2.7 | 1.9 | 1.8 |
| Head-quarters | -2.4 | -2.7 | -0.7 | -2.8 | -2.0 | -1.6 | -1.4 | -0.3 |
| Total | 4.8 | 19.5 | 18.4 | 15.8 | -2.8 | 13.1 | 5.6 | 6.4 |
The Group's annual report will be published on 25 February 2000. The interim report for the period January to March will be published on 4 May, for the period January to June on 3 August and for January to September on 2 November 2000. The Company's Annual General Meeting will be held on Wednesday, 8 March 2000 at 2:00pm at Amer Group Plc's headquarters in Helsinki.