Amer Sports saw net sales decrease 3.6% to €310.3 million ($418.4 mm) in the second quarter, down from €321.8 million ($404.3 mm) in the year-ago quarter. The company did manage to post a slight increase in the net loss for the quarter, slimming 3.7% to a loss of €10.4 million ($14.0 mm) from a loss of €10.8 million ($13.6 mm) last year. In local currency terms, net sales were on par with the previous year. Salomon's sales were down 3% and Atomic's 11% in local currencies. Wilson's sales were at the previous year's level. Precor's sales increased 7% and Suunto's 9%.


 


EBIT was a loss of €12.8 million ($17.3 mm), widened 42.2% from a loss of € 9.0 million ($11.3 mm).


 


Roger Talermo, President and CEO:


 


“The uncommonly mild winter in 2006/2007 weakened this year's outlook for the winter sports business. Pre-orders for the coming winter season fell short of expectations. Re-orders in the latter part of 2007 will be much dependent on weather conditions in the early winter.


 


“We expect Salomon's and Atomic's product ranges to gain market share, especially in alpine boots but also in cross-country equipment. Alpine skis and bindings are expected to maintain their market share. However, the decline in pre-orders by approximately one quarter compared to last year will lead to a marked decrease in the profitability of Atomic and Salomon's winter sports business. The winter sports business as a whole will be unprofitable in 2007 under these exceptional circumstances.


 


“In early 2007 we began to adjust our winter sports business to match the decrease in volumes by cutting costs and enhancing cooperation between Atomic and Salomon. To ensure that our plans are carried out efficiently, we set up a new business unit called Winter & Outdoor, which encompasses Salomon, Atomic, Mavic, Arc'teryx, and Bonfire. We will also take further measures to adjust our cost structure.


 


“With the exception of winter sports equipment, our business units are progressing as planned. Particularly good progress has been witnessed in Salomon's Apparel and Footwear and in Precor's operations. Wilson's Racquet Sports, Suunto, and Mavic reported continued positive development.”


  


Amer Sports net sales in January-June 2007 by business segment were as follows: Wilson 45%, Salomon 27%, Precor 19%, Suunto 6%, and Atomic 3%. Salomon's sales declined 8%, Wilson's 7%, and Atomic's 41%. Precor's sales were on par with the previous year and Suunto's net sales rose 9%. In local currency terms, Salomon's sales were down 6% and Atomic's 40%. Wilson's sales were on par with the previous year. Suunto's sales increased 12% and Precor's 8%.


 


The geographical split of net sales is as follows: the Americas (including South and Central America) 54%, EMEA (europe, Middle East and Africa) 36%, and Asia 10%. Sales in Asia decreased 11%, in the Americas 7%, and in EMEA 5%. In local currency terms, net sales were on par with the previous year in the Americas and declined 5% each in EMEA and Asia.


 


The Group had 6,626 employees (6,832) at the end of the period and an average of 6,650 (6,824) employees. At the end of the period, 2,636 of the employees worked in the Americas, 3,341 in EMEA, and 649 in Asia.


  


SALOMON





































































€ million

Q2/


2007

Q2/


2006

Change


%

1-6/


2007

1-6/


2006

Change


%

2006


Net sales

 

 

 

 

 

 

 


  Winter Sports


  Equipment

10.1

13.8

-27

29.4

47.1

-38

324.6


  Apparel and Footwear

36.4

30.1

21

96.8

80.1

21

205.6


  Mavic

26.0

24.3

7

56.2

53.5

5

107.8


  Discontinued


  operations

0.5

8.2

-94

1.1

19.0

-94

23.4


Net sales, total

73.0

76.4

-4

183.5

199.7
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