Amer Sports saw net sales decrease 3.6% to 310.3 million ($418.4 mm) in the second quarter, down from 321.8 million ($404.3 mm) in the year-ago quarter. The company did manage to post a slight increase in the net loss for the quarter, slimming 3.7% to a loss of 10.4 million ($14.0 mm) from a loss of 10.8 million ($13.6 mm) last year. In local currency terms, net sales were on par with the previous year. Salomon's sales were down 3% and Atomic's 11% in local currencies.
EBIT was a loss of 12.8 million ($17.3 mm), widened 42.2% from a loss of 9.0 million ($11.3 mm).
Roger Talermo, President and CEO:
“The uncommonly mild winter in 2006/2007 weakened this year's outlook for the winter sports business. Pre-orders for the coming winter season fell short of expectations. Re-orders in the latter part of 2007 will be much dependent on weather conditions in the early winter.
“We expect Salomon's and Atomic's product ranges to gain market share, especially in alpine boots but also in cross-country equipment. Alpine skis and bindings are expected to maintain their market share. However, the decline in pre-orders by approximately one quarter compared to last year will lead to a marked decrease in the profitability of Atomic and Salomon's winter sports business. The winter sports business as a whole will be unprofitable in 2007 under these exceptional circumstances.
“In early 2007 we began to adjust our winter sports business to match the decrease in volumes by cutting costs and enhancing cooperation between Atomic and Salomon. To ensure that our plans are carried out efficiently, we set up a new business unit called Winter & Outdoor, which encompasses Salomon, Atomic, Mavic, Arc'teryx, and Bonfire. We will also take further measures to adjust our cost structure.
“With the exception of winter sports equipment, our business units are progressing as planned. Particularly good progress has been witnessed in Salomon's Apparel and Footwear and in Precor's operations. Wilson's Racquet Sports, Suunto, and Mavic reported continued positive development.”
Amer Sports net sales in January-June 2007 by business segment were as follows:
The geographical split of net sales is as follows: the
The Group had 6,626 employees (6,832) at the end of the period and an average of 6,650 (6,824) employees. At the end of the period, 2,636 of the employees worked in the
SALOMON
| Q2/ 2007 | Q2/ 2006 | Change % | 1-6/ 2007 | 1-6/ 2006 | Change % | 2006 |
Net sales | | | | | | | |
Winter Sports Equipment | 10.1 | 13.8 | -27 | 29.4 | 47.1 | -38 | 324.6 |
Apparel and Footwear | 36.4 | 30.1 | 21 | 96.8 | 80.1 | 21 | 205.6 |
Mavic | 26.0 | 24.3 | 7 | 56.2 | 53.5 | 5 | 107.8 |
Discontinued operations | 0.5 | 8.2 | -94 | 1.1 | 19.0 | -94 | 23.4 |
Net sales, total | 73.0 | 76.4 | -4 | 183.5 | 199.7 |
