Salomon, the newly-acquired winter and outdoor sports division of Amer Sports, has launched a three-year turn-around program designed to “ensure its future competitiveness.” The program includes a reorganization of Salomon operations and the elimination of up to 400 positions, primarily in France. Other important measures include a reallocation of the production of Salomon skis and Atomic ski boots to ensure the optimization of Group benefits.
Amer Sports expects to realize annual cost-savings in excess of EUR 40 million by the end of 2008.
The cost of the Salomon reorganization, resulting from the staff reductions, integration and other measures, is estimated at approximately EUR 50 million. The cost will be provided for in the Amer Sports 2005 financial statements. The reorganization of Salomon, however, is not expected to have a significant effect on Amer Sports' earnings per share in the current fiscal year due to Salomon's fourth-quarter results and IFRS-related Salomon balance sheet valuation adjustments. Amer Sports' earnings per share are estimated to amount to EUR 0.90-1.00 as previously announced.
Salomon will work in close collaboration together with the workers' representatives in order to find the best possible solutions for the employees via job revitalization and other measures. This social plan is expected to be ready by the end of April 2006.
“These measures are absolutely necessary in order to ensure our competitiveness and build a base for future growth. We will do our utmost to help the people departing our company to find new jobs,” says Jean-Luc Diard, the President of Salomon.
