Amer Group reported that third quarter net sales declined 6.4% to €278.7 million ($340.8 mm) from €297.9 million ($335.6 mm) in the year-ago quarter. Net sales declined due to the withdrawal from the tobacco business in March. Foreign exchange rate movements reduced net sales by €10 million.

Excluding the effect of currency exchange and the tobacco business, sales would have increased 7.8% for the period.
The Winter Sports business, anchored by Atomic, increased 6.5% to €88.6 million in the quarter when measured in Euros. In the historically important period for the Winter Sports business, EBIT declined 3.6% to €24.0 million from €24.9 million in the prior year period, resulting in a 26% decrease in YTD EBIT for the division.

For the nine-month YTD period, Winter Sports net sales in local currencies grew by 10% and are expected to grow at the same rate for the full year, based on orders shipped and in the pipeline. On a regional basis, YTD sales grew 18% in EMEA and 7% in the Americas.

Sales growth was especially strong in bindings, primarily due to the new Neox line. Sales of alpine skis were similar to last year’s level. Sales growth has been “weighted towards lower margin product groups.”

YTD EBIT was impacted by some investment in strengthening the distribution network, especially in Japan, where Winter Sports’ distribution has been transferred to Amer Sports Japan. Distribution in Japan has previously been handled by ASICS.

Suunto instruments business saw revenues increase 11.0% to €18.2 million for the period. Third quarter EBIT for the division was flat at €2.0 million.

Suunto’s YTD net sales in local currencies increased 5%, with sales up 8% in the Americas and 7% in EMEA.
Sales of Suunto’s wristop computers grew by 8% in the nine-month period and sales of Suunto’s diving instruments grew by 6%. Wristop computers and diving instruments accounted for 62% of Suunto’s net sales, up 100 basis points from YTD last year.

Third quarter EBIT was €34.4 million, down 45.7% from €62.7 million in Q3 last year, a figure that includes a patent litigation settlement of €20.5 million. Excluding this and other one-time charges for both years, Q3 EBIT would have been roughly flat for the quarter versus last year.

Amer Group’s sports equipment net sales are expected to grow 5% for the full year. The sports equipment business EBIT is also expected to grow compared to 2003, excluding the 2003 patent litigation settlement.