Amer Sports reported a smaller underlying operating loss in the second quarter,  and cut its outlook for full-year earnings. Q2 net sales decreased 8% to €285.1 million ($441 million). Net sales in local currency terms were at last year’s level. Net sales increased 4% in Winter and Outdoor, whereas net sales in Ball Sports and Fitness decreased by 13% and 17%, respectively. In local currency terms, net sales in Winter and Outdoor increased 8%; Fitness decreased 5% and Ball Sports was down 4%.


 


The geographical breakdown of net sales was as follows: the Americas (North, South and Central America) 49%, EMEA (Europe, Middle East and Africa) 38% and Asia Pacific (including Japan and Australia) 13%. Sales decreased 14% in the Americas, 2% in Asia Pacific, and remained at last year’s level in EMEA. In local currency terms, net sales increased 3% in Asia Pacific and 2% in EMEA. In the Americas, sales decreased 2%.


 


The Group’s earnings before interest and taxes (EBIT) showed a loss of €7.8 million ($12.1 million), compared to a loss of €12.8 million a year ago. 


 

In the half, Amer Sports net sales decreased 6% to €648.1 million ($1 billion). The sales were particularly affected by the weakening of the U.S. dollar. In local currencies net sales increased 1%.


 


Earnings before interest and taxes (EBIT) improved to €7.8 million ($12 million), including a capital gain of 13 million euros from selling the company’s corporate headquarters building. Earnings per share amounted to €0.23 (-0.30).


 


Regarding guidance, the company estimates that Amer Sports EBIT, excluding a capital gain of €13 million, will amount to €90-105 million,  slightly down from previous guidance: €100-130 million.


 


In a statement, Roger Talermo, president and CEO, said, “Due to continuing challenging market conditions during the second quarter, Amer Sports sales in local currencies remained at last year’s level.”


 


“Apparel and Footwear continued its solid performance in Europe. Footwear marketing investments in the U.S. are generating promising results. The Winter Sports Equipment pre-order season is completed. Pre-orders are up 3% compared to last year, with solid recovery in key Central European alpine markets and Japan but unsatisfactory development in North America. The Nordic countries continued to suffer from weakness in the cross-country ski market. The restructuring of the Winter Sports Equipment business area was concluded as planned and our savings target of EUR 20 million for 2009 remains intact. The weak North American economic environment had the biggest impact on our Fitness segment. The commercial category is performing well, but the demand for consumer products has dropped significantly. We are adapting Precor’s operations and adjusting its cost base to correspond with declining sales. These changes will have a positive impact on Precor’s profitability during the second half of the current year.


 


“As a consequence of the more difficult macro-economic environment, we believe that our full-year earnings growth will be slower than we anticipated at the start of the year.”