Amer Sports reports January – June financial results

10/08/2006

Between January and June, Finland-based sporting goods corporation Amer Sports’ net sales grew 4% to €739.2 million compared with €689.9 million in the same period in 2005.

Net sales by business segment were as follows: Salomon, 27%, Wilson, 46%, Precor, 18%, Atomic, 4%, and Suunto, 5%.

The split of net sales by market area were as follows: the Americas (including Latin America), 54%, EMEA (Europe, the Middle East and Africa), 35%, and Asia Pacific, 11%. Sales grew by 11% in the Americas, by 3% in EMEA and by 6% in Asia Pacific. Net sales growth in local currencies by market area was: the Americas, 4%, EMEA, 3%, and Asia Pacific, 6%.

Net sales of Salomon’s winter sports equipment rose by 8% in local currency terms. Net sales of apparel and footwear grew by 11% in local currency terms. The good trend in sales of outdoor footwear was boosted by the new Soft Shell technology. The net sales of the bicycle component manufacturer Mavic grew by 9% in local currency terms.

Wilson’s comparable net sales in local currencies remained at last year’s level. Of the product groups, the best growth was seen in accessories and footwear. The Golf Division’s sales were down 20% in local currencies, and did not measure up to expectations.

Precor’s net sales were up 12% in local currency terms. Total growth in the market for home fitness equipment levelled off. However, demand for elliptical trainers has remained solid.

Atomic’s net sales declined by 16% in local currencies. Estimating from the level of pre-orders, it is expected that the sales of alpine boots and crosscountry skiing equipment will increase in the 2006/07 season.

Suunto’s net sales remained on a par with the corresponding period of the previous year in local currencies. Sales of Suunto’s diving instruments increased by 11% during the review period although sales of diving and water sports suits declined.

In the April to June period, the Group’s net sales were up 5% in local currency terms and amounted to €321.8 million compared with €304.9 in 2005. In local currency terms, Salomon’s sales rose by 6%, Wilson’s by 4%, Precor’s by 10% and Suunto’s by 11%. The Golf Division’s sales decreased by 14% in local currencies, and did not meet expectations.

Full the full year, the company’s net sales are expected to be €1.8 billion compared with €1,732 million last year.