Amer Group's net sales in fourth quarter inched up 0.6% to €267.6 million ($318.7 mm) from €266.1 million ($214.3 mm) in the year-ago period. Excluding foreign currency exchange fluctuations, Amer Group sales would have increased 8.1%.

Fourth quarter net income fell 38.2% to €26.1 million ($31.1 mm), or €1.11 ($1.32) per share, from €42.2 million ($31.1 mm), or €1.82 ($1.72) per share in the year-ago period.

Foreign exchange rate movements reduced net sales by €103.0 million during the year, due mainly to strengthening of the euro against the U.S. dollar. Excluding FX rates, sales would have increased 9.6%. However, when excluding both the gain from the Precor business acquired in late 2002 and the FX rate loss, sales would have declined 2.9% for the year.

Winter Sports led all categories in sales for the quarter, contributing €72.0 million ($85.7 mm), or 26.9% of total sales and 84% of profits for Q4. Atomic’s net sales rose by 10.1% in the quarter, but operating income dipped 3.6% to €16.0 million ($19.1 mm) compared to €16.6 million ($15.7 mm) in Q4 2002.

Amer said last year’s Winter Sports season “began with poor snow conditions in Germany and Austria”, impacting the fill-in business for the Winter Sport division in early 2003. For the year, the division saw net sales decline 3% when measured in local currencies. The division represents 17.1% of total year sales.

The company said that Atomic retained in position as the world’s No. 1 alpine ski brand last year. The Volant business, which the company acquired from Huffy in December 2003, adds about €4.0 million in annual sales based on last year’s figures.

Racquet Sports sales were €37.8 million ($45.0 mm) in Q4, down 3.8% from year-ago sales of €39.3 million ($37.2 mm). Operating profit fell 40.6% in Q4 to just €1.9 million ($2.3 mm). Racquet sales were 14.1% of total sales in Q4 and 19.1% of full year sales.

For the year, comparable net sales in local currencies fell by 2% in the Racquet Sports division, but gained some steam in the back half of the year, growing 4% in local currencies. Wilson reportedly “strengthened its position as the No. 1 brand in tennis equipment”, with the company’s global market share rising to 36% in tennis racquets and to 24% in tennis balls.

Golf Division sales fell 20.7% in the quarter to €22.6 million ($26.9 mm) from €28.5 million ($27.0 mm) in Q4 2002. The division was a drag on overall operating income for the company as the group posted an €8.1 million ($9.6 mm) loss for the period, a 125% increase in the loss from the year-ago period. The Golf division was 8.4% of company sales in Q4 and 14.4% of total sales for the full year.

For the year, net sales for the Golf division fell by 16% in local currencies. Amer said sales of golf balls “weakened amidst fierce competition”, and indicated that Wilson’s market share in golf balls fell to 4%.

They said that market share in golf clubs also fell to 4%. There was no indication from the company on plans to increase sales in the immediate future as they stated their primary goal for the division for the current year is to “return to profitability”.

Team Sports has continued to “perform well”, as operating profit for the division improved by 12.5% in Q4 to €3.6 million ($4.3 mm) even as sales declined 3.6% for the period.

Measured in U.S. dollars, the Team Sports group saw sales jump 21.4% for Q4 and 7.8% for the year. In local currencies, net sales for the year increased 7% and operating profit improved by 4%. Sales of baseball and softball bats rose by 21% and sales of basketballs by 10%. The acquisition in November of ATEC from Sport Supply Group brings another $11 million in “highly profitable” sales to the group.

Global sales of other products under license from Wilson totaled approximately €120 million ($135.8 mm).

The Fitness Equipment division contributed almost 40% of total net operating profit for the company in the quarter and boosted company operating profit by €14.9 million ($16.9 mm), after goodwill amortization, for its first full year of ownership. The acquisition of Precor in late 2002 boosted total group net sales by €137.5 million ($155.7 mm) for full year 2003.

The Fitness Equipment division saw sales increase 22.5% to €48.4 million ($57.6 mm) in the fourth quarter, representing 18.1% of total company sales for the period. On a pro forma basis, division net sales for the year were down 12.5% to €177 million ($200.4 mm) compared to €202.4 million ($191.5 mm).

Comparable net sales in local currencies rose by 3% for the full year and operating profit was up significantly. The strongest growth was in sales of stationary cycles.
Suunto net sales in fourth quarter fell 11.9% in reporting Euros to €20.7 million ($24.6 mm) from €23.5 million ($22.2 mm) in the year-ago quarter. Operating profit for Q4 fell almost 57% to €1.6 million ($1.9 mm).

Suunto net sales in local currencies fell by 6% for full year 2003, as non-core third-party products were eliminated from the company’s product range and demand for diving instruments declined. Sales of Suunto wristop computers rose by 5% in 2003. Wristop computers and diving instruments accounting for 64% of Suunto’s full year net sales versus 60% in 2002.

Measured n U.S. dollars, North America sales for Amer group would have increased 20.6% for full year 2003 and would have seen a 30.5% jump in sales for Q4.