Amer Sports Corporation' interim report January-September 2005

Amer Sports' net sales in local currencies up 5%

 

- Amer Sports' net sales in the January-September period of 2005 increased by 4% to EUR 805.2 million (January-September 2004: EUR 774.9 million).

- Earnings before interest and taxes (EBIT) amounted to EUR 69.1 million (66.5), including EUR 5.9 million in capital gains from the sale of properties. Earnings per share were EUR 0.63 (0.64).

- Amer Sports Corporation's acquisition of the Salomon business and its brands was seen to completion on October 19, 2005. Salomon will be consolidated into Amer Sports Corporation's figures as from October 1, 2005.

- In 2005, Amer Sports' comparable net sales in local currencies - exclusive of Salomon - are expected to grow by 5% compared with last year. The Salomon acquisition will substantially increase Amer Sports' net sales in the last quarter of the present year. The Salomon transaction is not estimated to significantly affect Amer Sports' earnings per share in the current fiscal year. Earnings per share are expected to amount to EUR 0.90-1.00.

 

*) 12 months' rolling average

 

Roger Talermo, President and CEO:

 

"Amer Sports' acquisition of the Salomon business became effective on October 19, 2005. The work to integrate the business operations of Amer Sports and Salomon can now begin. Our aim is to increase Salomon's profitability to meet our financial targets. The estimate of synergies we made when the transaction was announced has been confirmed. These synergies are primarily generated by industrial operations in the winter sports business. In addition, synergies are expected in administration and R&D.

 

In the January-September period, Amer Sports' net sales rose by 4%. Net sales growth in local currency terms amounted to 5%. The fastest sales growth was seen in the Fitness Equipment Division, whose net sales increased by 16% in local currency terms.

 

The trend in Racquet Sports remained favorable. In local currency terms, net sales rose by 6% in the January-September period compared with the corresponding period of the previous year. The net sales and EBIT of the Golf Division underperformed expectations. Net sales were down 5% in local currency terms compared with the same period a year ago. Net sales of Sports Instruments declined by 5% in January-September.

 

Growth in Team Sports was better than expected. Net sales rose by 10% in local currency terms compared with the corresponding period of the previous year. Sales in Asia Pacific grew by 52%.

 

Thanks to the robust third quarter, the net sales of Winter Sports increased by 2% in the January-September period. September saw the division break all its previous monthly delivery records. Sales of alpine ski boots were up 42%. Alpine ski boots comprise the Winter Sports Division's fastest-growing product group."