Approaching the end of season 2004/05, Rossignol announced a preliminary report as to the operations and perspectives of the results for the current fiscal year will be released. First estimates on the winter sports equipment sector show a slight increase in volume terms in the Alpine skiing sector, whereas the snowboard is decreasing. As a result Rossignol's income statement shall record strong losses for the current financial year. Amounts to be provisioned are currently being estimated.
In value terms, the market has recorded the adverse effect of both the evolution of the exchange rates and the strong competition, strengthened this season by a weak level of reorders, due in particular to a late snowing up in the beginning of this season. This situation of very strong competition has impacted the sales prices.
At current exchange rates, the group will record a remarkable performance in the golf sector, with sales growth of about 25 %. In Europe, golf sales growth is faster despite a last quarter which was more difficult. The textile sector has recorded growth in sales of about 10 %. Ski equipment sales, similar to the previous financial year, have remained affected by a new fall in the snowboard market, and by the weakness of said reorders, in particular in Japan, where they have turned to be almost nil. At last, as we have already announced it, in-line skates sales have turned out to be decreasing due to a sharp fall in the market during the summer 2004, in contradiction with the targeted growth initially forecasted.
In order to improve the situation, the group shall enter into a restructuring policy of its ski production sites, along with measures to reduce operating costs. This reorganization, rendered necessary to improve the group's competitiveness, includes a plan to adapt the workforce, accompanied by a series of measures aimed at preventing any dismissal. Restructuring costs shall be booked in the accounts for the financial year 2004/2005.
Other measures to improve financial and operational performance shall be implemented within the next months, with a view to restore the Group's profitability.
Considering those factors, the group has already announced that its income statement shall record strong losses for the current financial year. Amounts to be provisioned are currently being estimated.
Besides, Mr. Laurent Boix Vives, majority shareholder of the company, has informed the Managing Board that he has received an offer from the company QUIKSILVER, which would entail the transfer to QUIKSILVER of the control of the Skis Rossignol Group. Mr. Laurent Boix Vives has declared that he was considering this offer as positive and in favour of the company and of the Group. This offer will be presented to the Central Work Committee in order to obtain its opinion this Tuesday of March 22.Therefore, in compliance with article L. 241-4 of the French financial and monetary Code, the company has required to Euronext to suspend the quotation of its stocks, on March 22, 2005 at the opening, to enable the public to be informed under satisfying conditions.
