Amer Sports reported net sales of €284.7 million ($388 mm) were at last year's level of €285.1 million ($456 mm). In local currencies, net sales decreased by 6%. Sales in Winter and Outdoor increased by 2% and in Ball Sports by 4%. The net loss in the period was €23.2 million ($32 mm) against a loss of €11.4 million ($18 mm) a year ago.

Net sales of Fitness decreased by 15%. In local currency terms, Winter and Outdoor sales were at last year's level, Ball Sports sales decreased by 4% and Fitness sales decreased by 23%. Net sales by business segment were as follows: Winter and Outdoor 37%, Ball Sports 48% and Fitness 15%.

The split of net sales by geographical segment was as follows: the Americas 49%, EMEA 38% and Asia Pacific 13%. Sales in the Americas and EMEA were at last year's level and increased 6% in Asia Pacific. In local currency terms, net sales decreased 12% in the Americas, increased by 2% in EMEA and decreased 4% in Asia Pacific.

The Group's EBIT showed a deficit of €29.4 million ($40 mm) versus a deficit of €7.8 million ($12 mm). The weakened result reflects more challenging market conditions, particularly in the U.S. Last year's result includes a capital gain of €13 million ($19 mm) from selling the company's corporate headquarters building.

















































































































*) Change in local currency terms



Roger Talermo, president and CEO, said, “”Market conditions in the sporting goods industry during the second quarter remained as difficult as during the start of the year. The US market continued to suffer more than the European market and in general, there is less demand for high-ticket items. This was evident in both our Fitness and Golf businesses that saw the largest sales decline within Amer Sports.

“Then again, the demand for low-ticket items has remained healthy. We managed to improve our strong growth rate during the second quarter in our Apparel and Footwear business. Our pre-orders in Winter Sports Equipment for the next season are at last year's level thanks to market share gains in Europe.

“It's evident that in the current challenging times, we have to continue to adjust our structure in order to protect our bottom line. I'm convinced that we can create substantial efficiency gains by further reorganizing and developing our global sales and channel management and by developing our global supply chain and IT platforms. A new management model was introduced in June in order to ensure a successful execution of this next step in our strategy.

“As we have stated earlier, our key priority in 2009 is on strengthening our balance sheet, and in order to achieve this we are ready to consider all necessary measures. Our programs in reducing inventories and receivables are progressing as planned.”

First Half Results

In the first half, Amer Sports net sales of €640.0 million were off a bit from last year H1 sales of €648.1 million. In local currencies, net sales decreased by 7% for the half.

Net sales by business segment were as follows: Winter and Outdoor 42%, Ball Sports 44% and Fitness 14%. Winter and Outdoor sales increased by 2% and were at last year's level in Ball Sports. Net sales of Fitness decreased by 15%. In local currency terms, Winter and Outdoor net sales were at last year's level, Ball Sports decreased by 6% and Fitness decreased by 24%.

The split of net sales by geographical segment was as follows: the Americas 47%, EMEA 42% and Asia Pacific 11%. Sales decreased in the Americas by 4%, were at last year's level in EMEA and increased 7% in Asia Pacific. In local currency terms, net sales decreased by 14% in the Americas, increased by 2% in EMEA and decreased by 2% in Asia Pacific.

The Group's EBIT for the first half was a loss of €36.3 million versus a deficit of €7.8 million. The weakened result reflects more challenging market conditions particularly in the US. Last year's result includes a capital gain of €13 million from selling the company's corporate headquarters building.

The first half net loss was €34 million against a loss of €16.6 million.

BUSINESS SEGMENTS

WINTER AND OUTDOOR






































































































*) In local currency terms


In January-June, Winter and Outdoor's net sales were at last year's level in local currency terms. The breakdown of net sales was as follows: Apparel and Footwear 49%, Winter Sports Equipment 18%, Cycling 19% and Sports Instruments 14%. The Americas accounted for 22%, EMEA for 67% and Asia Pacific for 11% of net sales. Sales in local currencies were down 10% in both in the Americas and Asia Pacific, and were up 7% in EMEA.

The EBIT loss of €40.1 million improved by 4% in local currencies and compared with a year-ago loss of €41.3 million.

The second quarter is dominated by the Apparel and Footwear business. In local currencies, Apparel and Footwear sales grew by 20% in the review period, the growth being driven particularly by Salomon. The order book for the fall/winter season is now complete, indicating a slower pace than in the first half of the year. Inventory management continues to improve according to targets.

The second quarter is not material for Winter Sports Equipment sales as all focus is on order intake for the next season. Its sales declined by 12% in local currencies in the review period. Pre-orders in Winter Sports Equipment for the next season are at last year's level, with strength in cross-country skiing and protectives.

Regionally, North America continues to underperform while most key European markets show healthy progress in orders. The operating expenses continue to track down as planned.

Bicycle component manufacturer Mavic's deliveries started to stabilize after a very low start for the year. The capacity constraints in high-end wheels continued to negatively impact both the sales and margins. The R-SYS recall is now almost complete. The customer feedback on the execution of the recall has been positive. Mavic's sales declined by 15% in local currencies.

Net sales of Sports Instruments were below last year's level. In local currencies, sales decreased by 12%. Net sales declined particularly in the US and in the diving category globally. However, the training and outdoor categories were at last year's level despite the difficult market environment. During the second quarter, Suunto launched new products in both watch and in diving categories. The products have been well received by the trade. New cost savings initiatives have been made in order to adjust Suunto's cost base to the current market conditions.

BALL SPORTS