Amer Sports' first quarter net sales grew by 8% to 417.4 million ($501.9 mm) compared to 385.0 million ($505.3 mm) in 2005. Comparable net sales in local currencies were up 3%. Earnings before interest and taxes (EBIT) amounted to 1.6 million ($1.9 mm) compared to a loss of 3.0 million ($3.9 mm) last year. Earnings per share were a loss of three Euro cents (four cents) versus a loss of seven Euro cents (eight cents) in 2005. Salomon's net sales rose by 12%.
The three-year turnaround initiative to improve profitability kicked off at Salomon last December is progressing “in line with plans.” In the reporting of profit and loss statement information and earnings per share for 2006, Amer Sports will use Pro forma figures for 2005 – in which Salomon has been accounted for as from January 1, 2005 – as its comparison information. It is expected that Amer Sports' net sales in 2006 will amount to 1.8 billion (2005: 1,732 million). Earnings per share in 2006 are expected to come in at 0.90-1.05.
Amer Sports CEO Roger Talermo said, “The trend in the sports and leisure markets was favorable in the first months of the year. The winter sports equipment and apparel trade in particular benefited from the good winter season.
“Amer Sports' net sales grew by 8% in January-March. Of the business segments, Precor and Salomon saw particularly good growth.
“Our key objective in 2006 is to pave the way for improving the profitability of Salomon. In December last year, we started up a three-year turnaround initiative which focus during current year is on codetermination negotiations in France and the restructuring of industrial production. The initiative is proceeding in line with expectations and the estimated schedule.
“The sales of the Golf Division have not measured up to plans. One of the factors that cut into sales was the focus on the major customers in the United States in line with the new distribution strategy. The effects of measures to improve profitability are not as yet fully evident in the result.
“The setting up of the unit that will coordinate the Asian subcontracting of all our brands is progressing in line with plans. By standardizing operations, we seek cost-effectiveness and synergies in sourcing.”
