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.

Sales for Wilson Racquet, Golf, and Team Sports products declined 3.6% to €121.5 million in the third quarter when measured in Euros. Measured in home country U.S. dollars, Wilson sales rose 4.7% to $148.6 million from $142.0 million in the year-ago period. EBIT for the Wilson divisions increased 8.1% in Euros to €6.7 million ($8.2 mm) versus €6.2 million ($7.0 mm) in the year-ago quarter. Wilson Q3 EBIT jumped 17.3% measured in U.S. dollars.

The Racquet Sports division saw revenues decline 3.2% to €54.8 million when measured in Euros. In U.S. dollars, the Racquet Sports business rose 5.1% to $67.0 million. Divisional EBIT declined 2.5% €7.7 million ($9.4 mm) from €7.9 million ($8.9 mm) in Q3 last year, but increased 5.8% in U.S. currency.

For the nine-month YTD period, Racquet Sports net sales grew 5% in local currencies. Sales grew 5%in the Americas, increased 2%in EMEA, and jumped 12% in Asia Pacific. YTD sales of Wilson tennis rackets increased 5%. Sales of higher priced performance tennis rackets grew especially in Japan and Europe. In the Americas, sales of lower price point rackets grew. Sales of tennis balls increased 4%. Footwear sales declined 6% in the YTD period.

Golf division revenues fell 11.4% in Euros to €27.9 million, but declined 3.9% to $34.1 million when measure din U.S. dollars. The Golf division narrowed its EBIT loss to €4.6 million ($5.6 mm) in the period from a loss of €4.8 million ($5.4 mm) in the same quarter last year, a 4.0% increase in the loss when measured in U.S. dollars.

YTD net sales for the Golf division declined 2% in local currencies, as sell-through to consumers was “slower than expected.” Sales increased 16% in Asia Pacific, but declined 14% in EMEA. YTD sales in the Americas sales were flat. Sales of Wilson golf clubs were flat to last year’s YTD period, but golf ball sales declined 9% for the period.

The company said the goal was to achieve profitability in the Golf Division this year. YTD EBIT was €3.4 million ($4.2 mm) in the Golf division versus a loss of €0.9 million ($1.0 mm) in the comparable period last year.

Profitability benefited from the restructuring of Wilson’s U.S. businesses and “associated adjustment of its cost structure,” but there was a “dampening effect due to a decline in average selling prices.”

In August, the company launched the new higher price point Wilson Staff golf collection.

The Team Sports division reported a 2.4% increase to €38.8 million measured in Euros, but jumped 11.1% to $47.4 million when measured in U.S. dollars. Team Sports EBIT increased 16.1% to €3.6 million ($4.4 mm) from €3.1 million ($3.5 mm) in Q3 last year, a 26.2% increase in EBIT in U.S. currency.

Team Sports division YTD net sales in local currencies grew by 12% and EBIT grew 11%. Outside the United States sales grew by 13%.

The fastest growing product category in Team Sports was baseball and softball bats with 19% growth as the DeMarini Half &Half bat technology continued to be a success both in the U.S. and in Japan.

Sales of footballs grew 12% and basketball sales increased 17% for the YTD period, driven by the NCAA official game ball deal. Sales were also boosted by the ATEC acquisition in November last year.

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.


But Charges Impact Net Income Line…


The Fitness Equipment business, which is built on the Precor platform, increased 19.3% to €50.1 million when measured in Euros, but jumped 29.5% to $61.3 million when measured in U.S. dollars. Third quarter EBIT for the division declined 44% to €4.2 million ($5.1 mm) from €7.5 million ($8.5 mm) , due primarily to a €2.5 million ($3.1 mm) settlement payout. Excluding the payout, Q3 EBIT would have down 10.7% when measured in Euros, or off 3.0% in U.S. dollars. EBIT was also impacted slightly by rising steel prices and integration costs of the acquired companies.

Fitness Equipment net sales in local currencies increased 30% in the nine-month YTD period.

Elliptical cross-trainers, treadmills and stationary cycles were said to be the fastest growing product categories for the division. Outside the Americas YTD sales grew by 38%. Sales growth was boosted by the acquisition of FPI and ClubCom Inc. in January of this 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.