Amer Sports Corporation
STOCK EXCHANGE RELEASE
July 24, 2014 at 1:00 pm
APRIL-JUNE 2014
- Net sales totaled EUR 376.1 million (April-June 2013: EUR 377.2 million). In local currencies, net sales increased by 4%. Double-digit growth in Apparel, Footwear and Cycling, offset by a minor decline in Ball Sports mainly due to continuous clean-up of unprofitable sales.
- Gross margin 43.9% (43.6%).
- EBIT excluding non-recurring items was EUR -17.6 million (-18.7). Non-recurring items were EUR -1.2 million (0) and were related to Ball Sports.
- Earnings per share were EUR -0.16 (-0.16).
- Net cash flow after investing activities EUR -38.7 million (-50.0).
- Pre-orders in Winter Sports Equipment declined by 4% indicating market share increases.
- Outlook for 2014 unchanged.
- Amer Sports moves into the next phase of restructuring to further accelerate profitable long-term growth towards 2020 (announced in a separate release today).
JANUARY-JUNE 2014
- Net sales were EUR 877.6 million (January-June 2013: EUR 870.2 million). In local currencies, net sales increased by 5%.
- Gross margin 44.1% (43.9%).
- EBIT excluding non-recurring items was EUR 3.0 million (7.7). Non-recurring items were EUR -1.2 million (0).
- Earnings per share EUR -0.09 (-0.03).
- Net cash flow after investing activities EUR 5.5 million (17.9).
OUTLOOK FOR 2014
Amer Sports expects global trading conditions to remain challenging, with some regional improvements. In 2014, Amer Sports' net sales growth in local currencies is expected to meet at minimum the company's long-term annual 5% growth target and EBIT excluding non-recurring items to improve from 2013. The company will continue to focus on the growth of Apparel and Footwear, consumer-driven product and marketing innovation, commercial expansion and operational excellence.
KEY FIGURES
| EUR million | 4-6/2014 | 4-6/2013 | 1-6/2014 | 1-6/2013 | 2013 |
| Net sales | 376.1 | 377.2 | 877.6 | 870.2 | 2,136.5 |
| Gross profit | 165.0 | 164.3 | 387.3 | 382.0 | 932.2 |
| Gross profit % | 43.9 | 43.6 | 44.1 | 43.9 | 43.6 |
| EBIT excluding non-recurring items | -17.6 | -18.7 | 3.0 | 7.7 | 154.9 |
| EBIT % excluding non-recurring items | 0.3 | 0.9 | 7.3 | ||
| Non-recurring items*) | -1.2 | - | -1.2 | - | - |
| EBIT total | -18.8 | -18.7 | 1.8 | 7.7 | 154.9 |
| EBIT % | 0.2 | 0.9 | 7.3 | ||
| Financing income and expenses | -7.9 | -5.3 | -17.1 | -12.0 | -28.6 |
| Earnings before taxes | -26.7 | -24.0 | -15.3 | -4.3 | 126.3 |
| Net result | -19.1 | -18.0 | -10.9 | -3.2 | 90.3 |
| Earnings per share, EUR | -0.16 | -0.16 | -0.09 | -0.03 | 0.77 |
| Net cash flow after investing activities | -38.7 | -50.0 | 5.5 | 17.9 | 42.5 |
| Equity ratio, % at period end | 40.6 | 39.9 | 37.5 | ||
| Gearing, % at period end | 63 | 65 | 57 | ||
| Personnel at period end | 7,490 | 7,382 | 7,330 | ||
| Average rates used, EUR/USD | 1.37 | 1.31 | 1.37 | 1.31 | 1.33 |
*) Non-recurring items are exceptional transactions that are not related to normal business operations. The most common non-recurring items are capital gains, exceptional write-downs, provisions for planned restructuring and penalties. Non-recurring items are normally specified individually if they have a material impact on EBIT.
HEIKKI TAKALA, PRESIDENT AND CEO:
The second quarter is typically a low sales quarter for Amer Sports, nevertheless we continued to deliver a solid 4% currency neutral growth, driven by Apparel and Footwear, Business to Consumer, China as well as Cycling and Fitness. We continued to define and execute a new strategy for Ball Sports, with the objective to first improve the gross margins and then re-ignite profitable growth. In this context, we discontinued some unprofitable Wilson product lines, and this affected our Ball Sports sales.
The trading conditions have continued to be quite challenging, partially due to the Winter Sports Equipment market being cautious and due to the political uncertainties especially in Russia and Argentina. However, we continue to have strong momentum in the majority of the businesses, with significant further acceleration opportunities especially in Apparel and Footwear, Business to Consumer, emerging markets, and increasingly in digital products and services. To capitalize on these acceleration opportunities faster, and to speed up the Ball Sports turnaround, we will start the next phase of our restructuring as announced today.
For further information, please contact:
Heikki Takala, President and CEO
Tel. +358 20 712 2510
Jussi Siitonen, CFO
Tel. +358 20 712 2511
Päivi Antola, Director, Corporate Communications and IR
Tel. +358 20 712 2537
TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held today at 3:00 pm Finnish time. To participate in the call, please dial +44 (0)20 3427 1904 (UK/international dial-in number), access code 2701668. The conference can also be followed at www.amersports.com (http://www.amersports.com). A recorded version and a transcript will be available later at the same web address. The replay number is +44 (0)20 3427 0598, and the access code 2701668#.
THIRD QUARTER RESULTS BULLETIN
Amer Sports will publish its Q3/2014 results bulletin on Thursday, October 23, 2014 at approximately 1:00 pm Finnish time.
CAPITAL MARKETS DAY
Amer Sports is hosting a Capital Markets Day for analysts and portfolio managers on August 28, 2014 in Helsinki, Finland.
DISTRIBUTION:
NASDAQ OMX Helsinki, main media, www.amersports.com
AMER SPORTS
Amer Sports (www.amersports.com) is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc'teryx, Mavic, Suunto and Precor. The company's technically-advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group's business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports shares are listed on the NASDAQ OMX Helsinki stock exchange (AMEAS).
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Amer Sports Oyj via Globenewswire
