The Wilson brand, which parent company Amer Sports is now calling its Ball Sports division, ended a rather dismal 2007 with a weak fourth quarter. Sales decreased in the mid-singles for both time periods for the brand as a whole with decreases in Golf leading the way.


The brand saw net sales decrease 4.0% for the fourth quarter to €107.0 million ($155.0 mm) from €111.5 million ($143.8 mm) for the year-ago quarter. However, sales increased 4% in local currency terms. Sales growth in Racquet Sports was more than offset by declines in Team Sports and Golf.


Golf's net sales decreased 6% in local currency terms or 10.9% in euro terms to €15.5 million ($22.5 mm). In order to ensure the profitability of its golf business, Wilson golf ball production in Humboldt, USA was discontinued. In the future, all golf ball production will be outsourced.
In Japan, Kasco Inc. began to distribute and license Wilson Golf products as of January 1, 2008. These reorganization measures are expected to provide annual savings of approximately $5 million. In total, approximately 100 staff positions were reduced as a result of the reorganization measures.


Racquet Sports net sales continued to perform well, increasing 11% currency-neutral, or 5.3% in euro terms, to €44.1 million ($63.9 mm) as tennis racket sales grew 8% in local currency terms, led by the [K] Factor product.


Team Sports net sales increased 1% in local currency terms, but declined 9.2% in euro terms to €47.4 million ($68.7 mm) as a result of “softened demand for baseball products.”


For the fourth quarter, the division’s EBIT jumped 53.8% to €8.0 million ($11.6 mm) or €5.2 million ($6.7 mm), while growing 58% in currency-neutral terms. EBIT for the full year decreased 5% in local currency terms or 12% in euro terms to €48.2 million ($66.1 mm). The decrease in EBIT was due to Team Sports sales falling short of expectations.
The Americas accounted for 65% of Ball Sports sales, EMEA for 22%, and Asia-Pacific for 13% of net sales. Sales in local currencies were up 9% in EMEA and down 2% in the Americas and 11% in Asia-Pacific.


For the full fiscal year, Golf sales decreased 13.3% to €99.4 million ($136.3 mm) from €114.6 million ($144.1 mm). In local currency terms, net sales declined 9%. EBIT for the division declined 5% without the effect of currency exchange rates, but declined 11.7% on a reported basis to €48.2 million ($66.1 mm) from last year’s €54.6 million ($68.6 mm).


Amer Sports reported a 14.5% decrease in fourth quarter sales to €497.1 million ($720.0 mm) from €581.6 million ($750.0 mm) for the year-ago period. EBIT amounted to €53.7 million ($77.8 mm) before non-recurring expenses to the amount of €42.7 million ($61.9 mm) resulting from the reorganization of the company’s Winter Sports equipment business were recorded for the period. Net income dropped to €1.3 million ($1.9 mm) from €47.0 million ($60.6 mm) last year due to the charges.


For the full year period, overall company net sales declined 7.8% to €1.65 billion ($2.26 bn), but net income declined 73.8% to €18.5 million ($25.4 mm).