Amer Group’s net sales in the fourth quarter declined 1.7% to 261.0 million ($338.3 mm) from 265.4 million ($316.0 mm) in the year-ago period. Full year net sales declined 3.2% to 1.06 billion ($1.32 bn), compared to 1.09 billion ($1.24 bn) in 2003. Foreign exchange rate movements reduced net sales by 10.0 million during the quarter and 50.0 million for the year, due mainly to strengthening of the euro against the U.S. dollar. Excluding foreign currency exchange fluctuations, Amer Group sales would have increased 2.1% for the quarter and 1.3% for the year.
The declines in the quarter and the year were due primarily to the sale of the Tobacco business. Excluding the effect of currency and the loss of the Tobacco business, 2004 sales would have increased 10.3% and Q4 sales would have jumped 13.1% for the period.
On a regional basis, Q4 sales in the Americas increased 11.6% to 136.4 million ($176.9 mm) from 122.2 million ($145.5 mm) in Q4 last year. In U.S. Dollar terms, sales in the region increased 21.6% for the period. The EMEA region, which includes Europe, Africa, and the Middle East, saw revenues take a 19.2% dive for the quarter due to the loss of the Tobacco business. The remaining Sports business rose 2.6% to 97.7 million, compared to 95.2 million in the year-ago period. Full year EMEA sales would have increased 6.1% to 372.2 million, excluding the Tobacco impact on sales.
Fourth quarter net income jumped 91.3% to 24.3 million ($31.5 mm) from 12.7 million ($15.1 mm) in the year-ago period. Full year net income rose 8.2% to 84.5 million, or 1.19 per share, from 78.1 million, or 1.12 per share, in 2003.
The Winter Sports division, which includes the Atomic and Volant business, contributed more than 58% of total net operating profit for the company in the quarter and represented nearly 31% of sales for Q4. The division posted an 11.8% sales increase to 80.5 million ($104.4 mm), or 30.8% of total sales, versus 72.0 million ($85.7 mm), or 27.1% of sales, in the year-ago period. Sales grew 13% in local currencies.
Winter Sports operating income increased 28.1% to 20.5 million (26.6 mm) from 16.0 million ($19.1 mm) in Q4 last year. Full year net sales increased 9.2% to 205.6 million ($255.7 mm), compared to 188.2 ($213.1 mm) in 2003. The Americas represented about 20% of Winter Sports sales for the year, or about 41 million ($51 mm), while EMEA made up 75% of sales, or 154 million, and Asia Pacific contributed 5.0% of sales.
Amer sees the winter sports market growing 3% in the 2004/05 season versus growth of just 2% in last years season. Management said that average selling prices in the market declined last year. Amer said comp sales, measured in local currencies, are expected to rise in 2005, while EBIT is forecast to be flat to 2004.
Suunto net sales in the fourth quarter declined 5.8% in reporting Euros to 19.5 million ($25.3 mm) from 20.7 million ($24.6 mm) in the year-ago quarter.
Suunto net sales in local currencies declined 5% for the fourth quarter. EBIT for Q4 was up 56 .3% to 2.5 million ($3.2 mm) from 1.6 million ($1.9 mm) in Q4 last year. EBIT had sunk 57% in Q4 last year.
Full year sales inched up just 0.8% to 77.2 million ($96.0 mm) from 76.6 million ($86.7 mm) in the prior year. Wristop and Diving Instruments were 64% of sales. Suunto net sales in local currencies increased 3% for the year. EBIT was up 3.9% to 8.0 million ($10.0 mm) from 7.7 million ($8.7 mm) last year.
At the companys annual meeting held last week, Amer approved growth objectives that call for “currency-neutral organic growth of an average 5% per annum and to at least match average annual growth in the sports equipment market.” They also said that the annual target is to at least achieve 10% operating profit.
For 2005, Amer Groups comparable net sales in local currencies are expected to grow by 3% to 5% compared with 2004. Earnings per share for 2005 are forecast to be in the 0.90 to 1.05 per share range.
