Amer Sports Corporation Interim Report January-September 2013

Amer Sports Corporation
STOCK EXCHANGE RELEASE
October 24, 2013 at 1:15 pm

Amer Sports Corporation Interim Report January-September 2013

JULY-SEPTEMBER 2013

  • Amer Sports achieved strong broad based net sales growth of 7% in local currencies, despite Winter Sport Equipment pre-order delivery peak shifting to Q4.

  • The reported growth was 1% due to currency fluctuations resulting to net sales of EUR 608.9 million (July-September 2012: EUR 601.9 million).

  • Gross margin was 45.0% (45.3%).

  • EBIT was EUR 82.5 million (81.3), representing 13.5% of sales (13.5%).

  • Earnings per share were EUR 0.47 (0.47).

  • Net cash flow after investing activities was EUR -119.3 million (-78.1).

  • Outlook for 2013 unchanged.

JANUARY-SEPTEMBER 2013

  • Net sales were EUR 1,479.1 million (January-September 2012: EUR 1,445.5 million). In local currencies, net sales increased by 6%.

  • Gross margin was 44.3% (44.4%).

  • EBIT was EUR 90.2 million (91.7).

  • Earnings per share were EUR 0.44 (0.43).

  • Net cash flow after investing activities was EUR -101.4 million (-24.9).

  • Gearing was 79% (73%).

OUTLOOK FOR 2013
In 2013, Amer Sports’ net sales growth in local currencies is expected to meet at minimum the company’s long-term annual 5% growth target and EBIT margin excluding non-recurring items is expected to improve from 2012. Amer Sports expects the trading environment to remain challenging in 2013. The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence.

KEY FIGURES

EUR million 7-9/2013 7-9/2012* 1-9/2013 1-9/2012* 2012
Net sales 608.9 601.9 1,479.1 1,445.5 2,064.0
Gross profit 273.9 272.9 655.9 641.7 900.6
Gross profit % 45.0 45.3 44.3 44.4 43.6
EBIT excluding non-recurring items 82.5 81.3 90.2 91.7 138.7
EBIT % excluding non-recurring items 13.5 13.5 6.1 6.3 6.7
Non-recurring items** -24.8
EBIT total 82.5 81.3 90.2 91.7 113.9
EBIT % 13.5 13.5 6.1 6.3 5.5
Financing income and expenses -6.5 -6.6 -18.5 -21.6 -31.5
Earnings before taxes 76.0 74.7 71.7 70.1 82.4
Net result 54.8 56.0 51.6 52.5 57.9
Earnings per share, EUR 0.47 0.47 0.44 0.43 0.48
Net cash flow after investing activities -119.3 -78.1 -101.4 -24.9 71.8
Equity ratio, % at period end 37.9 38.2 39.1
Gearing, % at period end 79 73 59
Personnel at period end 7,396 7,280 7,186
Average rates used, EUR/USD 1.32 1.25 1.32 1.28 1.28

*) Restated in accordance with revised IAS 19 standard (postemployment benefit plans).
**) Non-recurring items are exceptional transactions that are not related to normal business operations. The most common non-recurring items are capital gains, exceptional write-downs, provisions for planned restructuring and penalties. Non-recurring items are normally specified individually if they have a material impact on EBIT.

HEIKKI TAKALA, PRESIDENT AND CEO:
“We continued  our performance improvement in Q3 and delivered strong broad based growth, despite the challenging trading conditions and significant currency fluctuations. Our topline momentum was logically driven by solid double-digit growth in our strategic focus areas Apparel and Footwear, Emerging Markets, and Business to Consumers. The good momentum continued also in Suunto and Fitness which both grew at double-digit rate. Importantly, we also saw first signs of rebound in Team Sports behind a normalization of the baseball market inventory situation. In Winter Sports Equipment our delivery peak is later than last year, hence the slight decline in Q3. I’m overall pleased with our business progress. We stay the course and continue executing with confidence.”

DISCLOSURE PROCEDURE
Amer Sports Corporation starts to follow the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and published its Interim Report for July-September 2013 as an attachment of this stock exchange release in PDF format. The Interim Report is also available at the company website www.amersports.com.

Amer Sports Corporation Interim Report January-September 2013

TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held today at 3:00 pm Finnish time. To participate in the conference call, please call +44(0)20 3140 8286 (UK/international dial-in number) or +49(0)30 3001 90539 (Germany), confirmation code 8036673. The conference can also be followed live on the internet at www.amersports.com.

A replay of the conference call and a transcript will be available later at the same internet address. The replay number is (0)20 3427 0598 (UK/international dial-in number) or (0)69 2222 2236 (Germany), passcode 8036673#.

FINANCIAL STATEMENTS BULLETIN 2013
Amer Sports financial statements bulletin 2013 will be published on Tuesday, 28 January 2014 at approximately 1:00 pm Finnish time.

For further information, please contact:
Heikki Takala, President and CEO, tel. +358 9 7257 8210
Jussi Siitonen, CFO, tel. +358 9 7257 8212
Samppa Seppälä, Corporate Communications and IR, tel. +358 9 7257 8233

DISTRIBUTION:
NASDAQ OMX Helsinki, main media, www.amersports.com

AMER SPORTS
Amer Sports (www.amersports.com) is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto and Precor. The company’s technically-advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group’s business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports shares are listed on the NASDAQ OMX Helsinki stock exchange (AMEAS).

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