2006 to 739.2 million ($903.7 mm) compared to 689.9 million ($896.7 mm) in 2005. In local currencies, net sales grew by 4%. Earnings before interest and taxes (EBIT) amounted to a loss of 7.4 million ($9.0 mm) compared to a loss of 14.2 million ($18.5 mm) last year. The loss per share amounted to 0.19 compared to a loss of 0.23 last year.
The three-year turnaround initiative to improve profitability that was started at Salomon last December is progressing in line with plans. Social plan negotiations were concluded.
It is estimated that Amer Sports net sales in 2006 will amount to EUR 1.8 billion (2005: EUR 1,732 million). Earnings per share in 2006 are expected to come in at EUR 0.95-1.05 (Q1/2006 guidance: EUR 0.90-1.05).
In the reporting of profit and loss statement information and earnings per share for 2006, Amer Sports uses pro forma figures for 2005 – in which Salomon has been accounted for as from January 1, 2005 – as its comparison information. The figures do not include non-recurring items related to the Salomon acquisition. More information on the use of pro forma figures has been provided in the stock exchange bulletin released on April 20, 2006.
CEO Roger Talermo said “Trends in the sports and leisure markets were favorable in the first half of the year. During the review period, Amer Sports net sales rose by 7%. In local currency terms net sales grew by 4%.
“The seasonality of business areas was evident in the second quarter, which is the quietest season of the year for the winter sports business. On the whole, the amount of orders placed for both Salomon’s and Atomic’s winter sports equipment for the 2006/07 season is higher than in the previous year.
“The earnings trends of Salomon and Precor were particularly positive in the review period. The factors underlying the improvement in Salomon’s earnings were sales growth and better cost control. Precor’s EBIT also rose substantially thanks to growth in sales and improved sales margins. The Golf Division fell short of its objectives, burdening Wilson’s result.
“2006 is a transitional year for Salomon and it is proceeding as planned. The social plan negotiations initiated in December were concluded. As a result a total of 370 positions were cut as from June 23, 2006. In addition, great progress has been made in finding synergies for industrial cooperation between Atomic and Salomon. These changes will be carried through next year.
“We estimate that the positive trend in the demand for sports equipment will hold during the rest of the year.”
