Amer Sports increased its sales by 20 percent in the third quarter to €559.2 million, owing to another strong performance by its winter and outdoor division, which benefited from earlier deliveries and higher pre-orders than the previous year for winter sports equipment. The turnover of the Finnish group rose by 17 percent in constant currencies.

Group sales increased in all regions, with growth reaching 6 percent to €203.8 million in the Americas, 32 percent to €300.0 million in the Europe, Middle East and Africa (EMEA) region, and 16 percent to €55.4 million in Asia-Pacific. Comparable sales rose by 12 percent in the Americas, 22 percent in EMEA and 13 percent in Asia-Pacific.

The Ebit margin, excluding non-recurring items, rose to 13.3 percent from 12.7 percent a year earlier and the net profit reached €55.3 million against €47.4 million. Amer expects full-year sales to rise by 9 percent, at constant currency rates, from 2010 and the Ebit margin, excluding onetime charges, to widen by about 1 percentage point from 6.2 percent. The company said it has little visibility regarding 2012 but sees some inflationary pressure on costs.

Revenues at the winter and outdoor division, increased by 32 percent to €395.7 million, up by 24 percent in constant currencies. Each product line grew except the sports instruments unit and its Suunto brand. Sales of winter sports equipment under the Atomic and Salomon brands was up by 39 percent to €185.4 million, as they enjoyed more pre-orders and started deliveries three to four weeks earlier than last year.

Footwear sales grew by 35 percent to €90.7 million, apparel by 38 percent to €69.5 million and cycling by 14 percent to €28.7 million, with a strong contribution from wheels and cycling shoes.

The sports instruments unit saw its sales decline by 13 percent to €21.4 million, but this was due to divestments made last year, while underlying sales of sports instruments were stable and sales of outdoor instruments were up by 9 percent.

Sales of winter and outdoor products increased in all regions, with the Americas up by 20 percent at €101.6 million, EMEA by 37 percent to €260.2 million and Asia-Pacific by 31 percent at €33.9 million. At constant foreign exchange rates, revenues rose by 22 percent in the Americas, by 25 percent in EMEA and by 23 percent in Asia-Pacific. Excluding non-recurrent items, the Ebit margin of the segment rose to 20.0 percent in the third quarter from 19.4 percent a year earlier.

 
 

Amer Sports Consolidated Income Statement

(Million Euros, Third Quarter ended September 30)

 

2011

2010

%
Change

Winter and Outdoor

395.7

300.3

31.8

Ball Sports

106.7

114.0

-6.4

Fitness

56.8

52.6

8.0

NET SALES

559.2

466.9

19.8

Cost of Goods

305.8

257.6

18.7

License Income

2.0

2.4

-16.7

Other Operating Income

1.4

0.4

250.0

R&D Expenses

14.4

12.5

15.2

Selling & Marketing

117.5

104.3

12.7

Admin. & Other Expenses

50.5

39.5

27.8

Net Interest

-5.3

-2.2

140.9

Pre-Tax

69.1

53.6

28.9

Tax

13.8

6.2

122.6

Minority Interest

-0.1

-0.1

0.0

NET

55.3

47.4

16.7

Euro/share (diluted)

0.45

0.38

18.4

Focusing on the Wilson brand, sales of the ball sports division declined by 6 percent to €106.7 million due to a weak tennis market and a reorganization of the racquet sports business, but sales were steady in constant currencies.

Sales in racquet sports declined by 12 percent to €47.1 million, and they dropped by 9 percent in constant currencies, as Wilson suffered from the unstable weather and the tough market situation in Japan, among others. Amer is restructuring the racquet sports activity and directly taking over some markets currently served through distributors. The move has led to stopping shipments to some countries.

The team sports unit boosted its sales by 1 percent to €45.1 million for the quarter, but a sales rise of 12 percent excluding exchange rate changes more aptly catches the company's growing sales of bats under the DeMarini brand, and American footballs. Meanwhile, golf revenues declined by 10 percent to €14.5 million, and by 4 percent in constant currencies.

Sales of the ball sports division decreased in all regions, with the Americas down by 6 percent to €67.7 million, EMEA by 2 percent to €23.9 million and Asia-Pacific by 13 percent at €15.1 million. At constant foreign exchange rates, revenues rose by 4 percent in the Americas, dropped by 5 percent in EMEA and declined by 10 percent in Asia-Pacific.

The division booked a negative Ebit of €1.1 million in the third quarter compared with a €3.5 million profit a year earlier.

The fitness business and its Precor brand grew by 8 percent to €56.8 million. Comparable sales were up by 10 percent, including a rise of 12 percent in the group's commercial fitness business.

Sales in the Americas were down by 2 percent at €34.5 million, EMEA grew by 24 percent to €15.9 million and Asia-Pacific was up by 42 percent at €6.4 million. At constant foreign exchange rates, revenues rose by 1 percent in the Americas, by 24 percent in EMEA and by 36 percent in Asia-Pacific.

The fitness division's Ebit margin before extraordinary items slipped to 4.9 percent from 5.3 percent for the same quarter last year.