Amer Group has issued downward guidance for full year 2003, citing continuous weak demand for sports equipment in the USA. The company pointed out golf equipment sales that have been below expectations.
Furthermore, the strong euro, especially against the U.S. dollar, is also having a negative impact on the Group's growth.
Amer Group's net sales for 2003 as a whole are expected to be flat to 2002, whereas operating profit is expected to decline to around EUR 70-80 million versus 2002 operating profits of EUR 103.0 million. In 2002, Amer Group's net sales amounted to EUR 1.1 billion.
As announced on 29 April 2003, Amer Group is re-organising its Wilson businesses in the USA in order to ensure its competitiveness is improved and to increase efficiency. Re-organising Wilson's businesses, as well as related adjustments in Wilson's cost base in line with its business and current market situation, are expected to lower Amer Group's overall cost base by approximately EUR 10 million in 2004.
Industry growth has been slow in recent years but Amer Group believes that the industry's growth rate will pick up again in the future. Amer Group expects that it will be challenging to achieve rapid organic growth against this background, but the Group's healthy balance sheet and strong operating cash flow will enable it to continue its development of the business.
