* Amer Sports net sales decreased 6% to EUR 648.1 million. The sales
were particularly affected by the weakening of the U.S. dollar. In
local currencies net sales increased 1%.
* Earnings before interest and taxes (EBIT) improved to EUR -7.8
million (-20.6), including a capital gain of 13 million euros from
selling the company's corporate headquarters building. Earnings per
share amounted to EUR -0.23 (-0.30).
* New guidance: It is estimated that Amer Sports EBIT, excluding a
capital gain of EUR 13 million, will amount to EUR 90-105 million
(previous guidance: EUR 100-130 million).
Q2/ Q2/ Ch Ch 1-6/ 1-6/ Ch Ch
EUR million 2008 2007 % %*) 2008 2007 % %*) 2007
Net sales 285.1 310.3 -8 0 648.1 692.1 -6 1 1,652.0
Gross profit 116.9 126.2 -7 262.5 270.1 -3 664.4
EBIT before non-
recurring items -7.8 -12.8 39 47 -7.8 -20.6 62 68 92.2
Non-recurring items - - - - -42.7
EBIT -7.8 -12.8 39 47 -7.8 -20.6 62 68 49.5
Financing income and
expenses -7.4 -1.1 -14.3 -7.8 -83 -24.9
Earnings before taxes -15.2 -13.9 -9 -22.1 -28.4 22 24.6
Net result -11.4 -10.4 -10 -16.6 -21.3 22 18.5
Earnings per share,
EUR -0.16 -0.15 -0.23 -0.30 0.25
Earnings per share,
excluding
non-recurring
items, EUR -0.16 -0.15 -0.23 -0.30 0.70
*) Change % in local currency terms
ROGER TALERMO, PRESIDENT AND CEO:"Due to continuing challenging market conditions during the second
quarter, Amer Sports sales in local currencies remained at last
year's level."Apparel and Footwear continued its solid performance in Europe.
Footwear marketing investments in the U.S. are generating promising
results. The Winter Sports Equipment pre-order season is completed.
Pre-orders are up 3% compared to last year, with solid recovery in
key Central European alpine markets and Japan but unsatisfactory
development in North America. The Nordic countries continued to
suffer from weakness in the cross-country ski market. The
restructuring of the Winter Sports Equipment business area was
concluded as planned and our savings target of EUR 20 million for
2009 remains intact. The weak North American economic environment had
the biggest impact on our Fitness segment. The commercial category is
performing well, but the demand for consumer products has dropped
significantly. We are adapting Precor's operations and adjusting its
cost base to correspond with declining sales. These changes will have
a positive impact on Precor's profitability during the second half of
the current year."As a consequence of the more difficult macro-economic environment,
we believe that our full-year earnings growth will be slower than we
anticipated at the start of the year."
NET SALES AND EBIT IN APRIL-JUNE
Amer Sports Q2 net sales decreased 8% to EUR 285.1 million (310.3).
Net sales in local currency terms were at last year's level.
Net sales by business segment were as follows: Ball Sports 46%,
Winter and Outdoor 37% (Winter Sports Equipment 6%) and Fitness 17%.
Net sales increased 4% in Winter and Outdoor, whereas net sales in
Ball Sports and Fitness decreased by 13% and 17%, respectively. In
local currency terms, net sales in Winter and Outdoor increased 8%;
Fitness decreased 5% and Ball Sports 4%.
The geographical breakdown of net sales was as follows: the Americas
(North, South and Central America) 49%, EMEA (Europe, Middle East and
Africa) 38% and Asia Pacific (including Japan and Australia) 13%.
Sales decreased 14% in the Americas, 2% in Asia Pacific, and remained
at last year's level in EMEA. In local currency terms, net sales
increased 3% in Asia Pacific and 2% in EMEA. In the Americas sales
decreased 2%.
The Group's earnings before interest and taxes (EBIT) amounted to EUR
-7.8 million (-12.8). A capital gain of 13 million euros from selling
the company's corporate headquarters building was booked in the
second quarter result.
Earnings before taxes were EUR -15.2 million (-13.9). Earnings per
share came in at EUR -0.16 (-0.15). Net financial expenses amounted
to EUR 7.4 million (1.1). Last year's corresponding figure was
reduced by realized interest rate swaps, which resulted in a gain of
EUR 6.4 million.
NET SALES AND EBIT IN THE REVIEW PERIOD, JANUARY-JUNE
Amer Sports net sales decreased 6% to EUR 648.1 million (692.1).
Sales were particularly affected by the weakening of the U.S. dollar.
In local currencies net sales increased 1%.
Net sales by business segment were as follows: Ball Sports 42%,
Winter and Outdoor 41% (Winter Sports Equipment 8%) and Fitness 17%.
Winter and Outdoor sales increased 9%. Ball Sports sales decreased
12% and Fitness 20%. In local currency terms, Winter and Outdoor net
sales increased 12%, Ball Sports net sales decreased 4% and Fitness
9%.
The split of net sales by geographical segment was as follows: the
Americas 48%, EMEA 41%, and Asia Pacific 11%. Sales in EMEA increased
6% but declined by 16% in the Americas and by 4% in Asia Pacific. In
local currency terms, net sales were up 8% in EMEA but down 5% in the
Americas and flat in Asia Pacific.
EBIT improved to EUR -7.8 million (-20.6), including a capital gain
of 13 million euros from selling the company's corporate headquarters
building.
Earnings before taxes were EUR -22.1 million (-28.4). Earnings per
share came in at EUR -0.23 (-0.30). Net financial expenses amounted
to EUR -14.3 million (-7.8). Last year's corresponding figure was
reduced by realized interest rate swaps, which resulted in a gain of
EUR 6.4 million. Interest rate levels were slightly above the
previous year's level.
CAPITAL EXPENDITURE
The Group's capital expenditure on fixed assets totaled EUR 15.4
million (20.8). The Group's depreciation was EUR 17.2 million (16.5).
RESEARCH AND DEVELOPMENT
EUR 28.2 million (28.7) was invested in research and development,
representing 4.4% of net sales.
FINANCIAL POSITION AND CASH FLOW
The Group's net debt at the end of June was EUR 507.9 million (EUR
532.6 million on June 30, 2007).
Net cash flow from operating activities after interest and taxes was
EUR 94.4 million (95.2). Net cash flow from investing activities was
EUR 10.7 million (-18.3), including proceeds of 23 million euros from
selling the company's corporate headquarters building.
In 2007, Amer Sports issued two private placement bonds for Finnish
institutional investors. The total amount of the bonds, with
maturities of two and four years, is EUR 150 million.
Of the EUR 575 million credit facility agreed upon in 2005, EUR 165
million was paid in June 2007. In addition to USD 100 million drawn
in 2005, EUR 30 million was drawn on the credit facility in June and
the committed unused portion was EUR 295 million at the end of the
review period. The credit facility will mature in 2009, 2011 and
2012. In May a new pension loan of EUR 40 million was raised.
Short-term financing is raised with a domestic commercial paper
program of EUR 500 million, of which EUR 248 million had been used at
the end of the period.
Liquid assets amounted to EUR 29.2 million (32.1) at the end of the
period.
The equity ratio was 31.9% (33.5%) and gearing was 114% (108%).
BUSINESS SEGMENTS
WINTER AND OUTDOOR
Q2/ Q2/ Change 1-6/ 1-6/ Change
EUR million 2008 2007 % %*) 2008 2007 % %*) 2007
Net sales
Winter Sports 17.1 14.8 16 18 54.4 46.5 20 394.2
Equipment 17
Apparel and Footwear 38.9 36.4 7 11 109.6 96.9 13 16 229.4
Cycling 26.0 26.0 0 2 59.4 56.2 6 8 114.1
Sports Instruments 22.6 22.4 1 6 43.2 43.8 -1 2 90.7
Discontinued - 0.6 - -
operations - 1.2 - - 1.7
Net sales, total 104.6 100.2 4 8 266.6 244.6 9 12 830.1
EBIT -26.7 -28.8 7 6 -41.3 -63.2 35 33 20.9
*) In local currency terms
In the review period, Winter and Outdoor's net sales increased 12% in
local currency terms. The breakdown of net sales was as follows:
Apparel and Footwear 41%, Cycling 22%, Winter Sports Equipment 21%
and Sports Instruments 16%. EMEA accounted for 65%, the Americas for
23%, and Asia Pacific for 12% of net sales. Sales in local currencies
increased 32% in Asia Pacific, 11% in the Americas and 9% in EMEA.
EBIT improved to EUR -41.3 million (-63.2). The improvement reflects
increased sales of Winter Sports Equipment and a better underlying
profitability. Furthermore the continuous profitable growth in
Apparel and Footwear as well as in Cycling drove the result
improvement.
Business areas
In the review period, Winter Sports Equipment's net sales increased
20% in local currency terms. Second quarter sales are not material
due to seasonality. Pre-orders are up 3% compared to last year, with
solid recovery in key Central European alpine markets and Japan but
unsatisfactory development in North America. The Nordic countries
suffered from the continuous weakness of cross-country skiing.
Inventory levels in the trade have normalized for alpine products but
remain high in cross-country skiing.
The restructuring process of the Winter Sports Equipment business
area was concluded as planned in the second quarter. The number of
manufacturing sites will be reduced from 10 to 6 and personnel will
be reduced by more than 400 people by the end of the year. The annual
savings target of over EUR 20 million in 2009 is intact.
Strong growth in Apparel and Footwear continued, with net sales
increasing 16% in local currency terms. Besides strong growth in the
key European markets, marketing investments in the U.S. market for
footwear are generating promising results. Trail running continues to
be the key business driver. Based on the order book, the growth trend
will continue during the remaining part of the year.
In the review period, Mavic's net sales increased 8% in local
currency terms. In the second quarter, cycling component sales were
impacted by capacity constraints. The order book remains healthy.
In the review period, Suunto's net sales increased 2% in local
currency terms, driven by growth in the training and outdoor
categories. The Core product line and the updated Training product
lines have been favorably received.
BALL SPORTS
Q2/ Q2/ Change 1-6/ 1-6/ Change
EUR million 2008 2007 % %*) 2008 2007 % %*) 2007
Net sales
Racquet Sports 62.6 71.1 -12 -5 125.2 136.2 -8 -1 236.0
Team Sports 41.1 45.5 -10 3 99.1 112.1 -12 0 195.5
Golf 27.2 33.8 -20 -12 50.6 65.7 -23 -16 99.4
Net sales, total 130.9 150.4 -13 -4 274.9 314.0 -12 -4 530.9
EBIT 11.3 15.0 -25 -16 27.0 34.8 -22 -14 48.2
*) In local currency terms
In the review period, Wilson's net sales declined by 4% in local
currency terms. The breakdown of net sales was as follows: Racquet
Sports 46%, Team Sports 36% and Golf 18%. The Americas generated 63%,
EMEA 27% and Asia Pacific 10% of net sales. On a currency neutral
basis, EMEA grew 5% and the Americas and Asia Pacific declined by 5%
and 17%, respectively. When removing the licensed Japan golf business
from the previous year's comparisons, Asia Pacific declined by 9%.
EBIT in local currency terms was down 14% to EUR 27.0 million (34.8).
Business areas
In local currencies, Racquet Sports net sales were at last year's
level during the review period but declined 5% in the second quarter.
The second quarter sales in the Americas were negatively impacted by
softness in the consumer demand and capacity constraints.
In local currencies, Team Sports net sales were at last year's level.
The 3% sales improvement in the second quarter was especially due to
increasing sales in the U.S., where specialty store sales were solid.
The sell-in of 2009 baseball products has started, and initial
feedback is positive. Agreed-upon key account sales programs for the
second half of the year will also have a positive impact on the last
quarter of the year.
In local currencies, Golf net sales decreased 16%. A substantial part
of the decline is due to the licensing of the golf business in Japan
and exiting OEM golf ball production in the U.S. last year. In
addition, sales were lower in the U.S. reflecting that two large
American retailers implemented aggressive golf private label programs
for 2008. The target remains to make profit this year.
FITNESS
Q2/ Q2/ Change 1-6/ 1-6/ Change
EUR million 2008 2007 % %*) 2008 2007 % %*) 2007
Net sales 49.6 59.7 -17 -5 106.6 133.5 -20 -9 291.0
EBIT -0.4 6.2 - - 3.3 16.1 -80 -76 37.2
*) In local currency terms
In the review period, Precor's net sales declined by 9% in local
currencies. The Americas accounted for 72%, EMEA for 19%, and Asia
Pacific for 9% of net sales. In local currency terms, sales were up
10% in EMEA and down 7% in Asia Pacific and 13% in the Americas.
EBIT decreased to EUR 3.3 million (16.1) due to the significant fall
in sales and lower gross margins resulting from increased raw
material costs. In the second quarter, one-off quality issues
amounting to EUR 3 million also had a negative impact on results.
Precor's commercial business, with sales to major club and fitness
facility customers, remained solid: global sales increased 8% and
sales in EMEA 10%. The Adaptive Motion Trainer (AMT) is generating
demand and excitement globally.
The North American consumer market continues to suffer from poor
economic conditions. Historically, the second quarter is a slow
season for home equipment, however, consumer demand dropped far below
expectations.
As a result of the sales decline, Precor is adapting its operations
and adjusting costs to correspond to the business environment.
Changes are being made both in manufacturing and sales. These cost
cuts will impact Precor's profitability during the second half of the
current year.
SELLING OF HEADQUARTERS BUILDING
Amer Sports Corporation sold its corporate headquarters building on
April 24, 2008, located at Mäkelänkatu 91, to Catella Real Estate AG
for EUR 23 million. Amer Sports booked a capital gain of EUR 13
million in its second quarter result. The company will remain in the
building as its primary tenant.
PERSONNEL
At the end of the period, the Group employed 6,273 people (6,626).
The Group employed an average of 6,294 people (6,650) during the
review period.
+---------------------------------------------------------+
| | June 30, | June 30, | December 31, |
| | 2008 | 2007 | 2007 |
|--------------------+----------+----------+--------------|
| Winter and Outdoor | 3,608 | 3,822 | 3,701 |
|--------------------+----------+----------+--------------|
| Ball Sports | 1,746 | 1,945 | 1,891 |
|--------------------+----------+----------+--------------|
| Fitness | 857 | 799 | 815 |
|--------------------+----------+----------+--------------|
| Headquarters | 62 | 60 | 58 |
|--------------------+----------+----------+--------------|
| Total | 6,273 | 6,626 | 6,465 |
+---------------------------------------------------------+
+---------------------------------------------------+
| | June 30, | June 30, | December 31, |
| | 2008 | 2007 | 2007 |
|--------------+----------+----------+--------------|
| EMEA | 3,349 | 3,341 | 3,330 |
|--------------+----------+----------+--------------|
| Americas | 2,375 | 2,636 | 2,557 |
|--------------+----------+----------+--------------|
| Asia Pacific | 549 | 649 | 578 |
|--------------+----------+----------+--------------|
| Total | 6,273 | 6,626 | 6,465 |
+---------------------------------------------------+
AMER SPORTS SHARES AND SHAREHOLDERS
At the end of the review period Amer Sports had 12,520 registered
shareholders. Nominee registered represented 42,2% (60.8%) of the
shares.
During the period, a total of 72.6 million Amer Sports shares were
traded on the Helsinki Stock Exchange to a total value of EUR 963.7
million. The share turnover was 100.3% (of the average number of
shares excluding own shares).
At the close of the review period, the last trade in Amer Sports
Corporation shares was completed at a price of EUR 9.58. The high for
the period on the Helsinki Stock Exchange was EUR 19.00 and the low
EUR 9.46. The average share price was EUR 13.27.
On June 30, 2008, the company had a market capitalization of EUR
695.5 million excluding own shares. The company has 445,000 own
shares. The number of own shares corresponded to 0.6% of all Amer
Sports shares.
On June 30, 2008, the company's registered share capital was EUR
292,182,204 and the total number of shares was 73,045,551.
Major changes in holdings, April - June 2008
Amer Sports Corporation received information on May 19, 2008 to the
effect that Danske Bank A/S Helsinki Branch's ownership of Amer
Sports Corporation share capital and voting rights has reached
one-twentieth (7,000,000 shares, 9.58%) following a share transaction
on May 16, 2008. In addition, Danske Bank A/S's Helsinki branch
announced that it holds forward market transactions, which according
to the existing terms, will expire in June of 2008. If realized, the
market forwards will lead to Danske Bank A/S Helsinki branch's
ownership rights falling below one-twentieth by June 19, 2008, at the
earliest.
Amer Sports Corporation received information on May 20, 2008 to the
effect that Nordea Bank AB's Finnish subsidiary Nordea Bank Finland
Oyj's market forwards have matured, lowering its ownership below
one-twentieth (80,565 shares, 0.11%).
Amer Sports Corporation received information on May 23, 2008 to the
effect that Novator Finland Oy has on May 22, 2008 extended its OMX
market forwards and entered into a securities lending agreement
concerning the company's shares. On March 19, 2008, Novator Finland
Oy notified of a partial conversion of direct holdings in shares of
Amer Sports Corporation into OMX market forwards. The period of the
forward contracts has been extended to August 21, 2008. Furthermore,
Novator Finland Oy has entered into a securities lending agreement,
whereby Novator Finland Oy will hold directly the same amount of
shares that are underlying of the OMX market forwards from May 23
through May 26, 2008. Therefore, during this period, Novator Finland
Oy's direct and potential holding in Amer Sports Corporation will
temporarily exceed one-fourth (1/4) of the company's shares and
voting rights. However, since the securities lending agreement
concerns the same amount of shares that are underlying of the OMX
market forwards, Novator Finland Oy's existing and potential holding
in the company will not in practice change from the previous level of
20.11% of share capital and voting rights. After settlement of the
securities lending agreement concerning 7,000,000 shares in the
company and for the period of the lending agreement, Novator Finland
Oy directly held 14,688,900 shares, representing 20.11% of the
company's shares and voting rights.
Amer Sports Corporation received information on May 23, 2008 to the
effect that Danske Bank A/S Helsinki Branch's ownership of Amer
Sports Corporation share capital and voting rights has fallen below
one-twentieth (1/20) on May 23, 2008, following a share loan
agreement. In addition, Danske Bank A/S's Helsinki Branch informed
that according to the existing loan agreement, the shares will return
to its possession on May 27, 2008, which will return its ownership
rights to one-twentieth (1/20) of the company's share capital and
voting rights. The Danske Bank A/S Helsinki Branch owns 7,000,000
shares, which represent 9.58% of the company's share capital and
voting rights.
The stock exchange releases on major changes in shareholdings during
first quarter of the review period can be found at Amer Sports web
pages, www.amersports.com/investors.
RESOLUTIONS OF THE EXTRAORDINARY GENERAL MEETING
At the Amer Sports Corporation Extraordinary General Meeting held on
June 4, the following resolutions were approved: the Company's
previous board members were released from their positions and a new
Board of Directors was elected. Felix Björklund, Ilkka Brotherus,
Anssi Vanjoki and Pirjo Väliaho were re-elected as members of the
Board of Directors. Martin Burkhalter, Christian Fischer and Bruno
Sälzer were appointed as new board members. The Board's term of
service will run until the 2009 Annual General Meeting. More detailed
information on the new board members can be found on the Amer Sports
web site, www.amersports.com/about/board.
BUSINESS RISKS AND UNCERTAINTY FACTORS
Amer Sports Corporation's short-term risks are particularly
associated with consumer demand in North America and Europe. Further
information on the Company's business risks and uncertainty factors
is available in the Company's Annual Report and web site at
www.amersports.com/investors.
OUTLOOK FOR 2008
General market conditions continued to weaken, especially in North
America during the second quarter. As this trend appears to be
continuing during the second half of the year, Amer Sports has
revised its full-year forecast. The company now estimates that its
EBIT, excluding the capital gain of EUR 13 million, will amount to
EUR 90-105 million (previous guidance EUR 100-130 million).
TABLES
The interim report has been prepared in compliance with IAS 34.
Accounting policies and the calculation of key figures have been
presented in the Group's 2007 Annual Report, and no amendments have
been made to these.
Unaudited
EUR million
CONSOLIDATED RESULTS
1-6/ 1-6/ Change 4-6/ 4-6/ Change
2008 2007 % 2008 2007 % 2007
NET SALES 648.1 692.1 -6 285.1 310.3 -8 1,652.0
Cost of goods sold -385.6 -422.0 -168.2 -184.1 -987.6
GROSS PROFIT 262.5 270.1 -3 116.9 126.2 -7 664.4
License income 6.9 9.1 2.9 4.3 18.0
Other operating 7.9
income 15.3 1.4 13.4 0.3
R&D expenses -28.2 -28.7 -13.6 -13.9 -57.7
Selling and -407.6
marketing expenses -198.6 -206.8 -95.3 -96.7
Administrative and
other expenses -65.7 -65.7 -32.1 -33.0 -132.8
Non-recurring
expenses related
to the
reorganization of
Winter
Sports Equipment
business area - - - - -42.7
EARNINGS BEFORE
INTEREST AND TAXES -7.8 -20.6 62 -7.8 -12.8 39 49.5
% of net sales -1.2 -3.0 -2.7 -4.1 3.0
Financing income -24.9
and expenses -14.3 -7.8 -7.4 -1.1
EARNINGS BEFORE 24.6
TAXES -22.1 -28.4 22 -15.2 -13.9 -9
Taxes 5.5 7.1 3.8 3.5 -6.1
NET RESULT -16.6 -21.3 22 -11.4 -10.4 -10 18.5
Attributable to:
Equity holders of
the parent
company -16.6 -21.5 -11.4 -10.6 18.1
Minority interests 0.0 0.2 0.0 0.2 0.4
Earnings per share, 0.25
EUR -0.23 -0.30 -0.16 -0.15
Earnings per share, 0.25
diluted, EUR -0.23 -0.30 -0.16 -0.15
Adjusted average
number of
shares in issue
less own shares,
million 72.4 72.1 72.4 72.1 72.0
Adjusted average
number of
shares in issue
less own shares,
diluted, million 72.5 72.5 72.5 72.5 73.0
Equity per share, 7.04
EUR 6.08 6.78
ROCE, % *) 6.2 10.5 4.8
ROE, % -7.0 -8.2 3.5
Average rates used:
EUR 1.00 = USD 1.53 1.33 1.37
*) 12 months' rolling average
The relative proportion of the estimated tax charge for the full
financial year has been charged against the result for the period.
NET SALES BY BUSINESS SEGMENTS
1-6/ 1-6/ Change 4-6/ 4-6/ Change
2008 2007 % 2008 2007 % 2007
Winter and Outdoor 266.6 244.6 9 104.6 100.2 4 830.1
Ball Sports 274.9 314.0 -12 130.9 150.4 -13 530.9
Fitness 106.6 133.5 -20 49.6 59.7 -17 291.0
Total 648.1 692.1 -6 285.1 310.3 -8 1,652.0
EBIT BY BUSINESS SEGMENTS
1-6/ 1-6/ Change 4-6/ 4-6/ Change
2008 2007 % 2008 2007 % 2007
Winter and Outdoor -41.3 -63.2 35 -26.7 -28.8 7 20.9
Ball Sports 27.0 34.8 -22 11.3 15.0 -25 48.2
Fitness 3.3 16.1 -80 -0.4 6.2 - 37.2
Headquarters 3.2 -8.3 - 8.0 -5.2 - -14.1
-7.8 -20.6 62 -7.8 -12.8 39 92.2
Non-recurring expenses
related
to the reorganization of
Winter
Sports Equipment business
area - - - - -42.7
Total -7.8 -20.6 62 -7.8 -12.8 39 49.5
GEOGRAPHIC BREAKDOWN OF NET SALES
1-6/ 1-6/ Change 4-6/ 4-6/ Change
2008 2007 % 2008 2007 % 2007
Americas 313.3 370.8 -16 140.2 163.6 -14 774.1
EMEA 266.9 250.9 6 109.2 110.1 -1 704.9
Asia Pacific 67.9 70.4 -4 35.7 36.6 -2 173.0
Total 648.1 692.1 -6 285.1 310.3 -8 1,652.0
CONSOLIDATED CASH FLOW STATEMENT
1-6/2008 1-6/2007 2007
EBIT -7.8 -20.6 49.5
Depreciation and adjustments to cash flow
from operating activities 3.9 15.7 30.5
Change in working capital 118.5 121.0 26.3
Cash flow from operating activities before
financing items and taxes 114.6 116.1 106.3
Interest paid and received -14.4 -7.3 -21.7
Income taxes paid -5.8 -13.6 -26.5
Cash flow from operating activities 94.4 95.2 58.1
Company divestments 2.6 - -
Capital expenditure on non-current tangible
and intangible assets -15.4 -20.8 -58.3
Proceeds from sale of tangible non-current
assets 23.5 2.5 4.0
Proceeds from sale of available-for-sale
investments - - 1.7
Proceeds from non-current loan receivables - - 1.0
Cash flow from investing activities 10.7 -18.3 -51.6
Dividends paid -36.3 -36.1 -36.2
Issue of shares - 1.3 10.6
Repurchases of own shares - - -7.5
Change in net debt and other financial items -106.8 -55.3 49.9
Cash flow from financing activities -143.1 -90.1 16.8
Liquid funds at 1 Jan 68.0 45.5 45.5
Translation differences -0.8 -0.2 -0.8
Change in liquid funds -38.0 -13.2 23.3
Liquid funds at 30 Jun/31 Dec 29.2 32.1 68.0
CONSOLIDATED BALANCE SHEET
30 June, 30 June, 31 December,
2008 2007 2007
Assets
Goodwill 259.8 285.3 270.9
Other intangible non-current assets 204.3 209.5 209.5
Tangible non-current assets 122.1 120.4 135.9
Other non-current assets 65.6 53.0 66.3
Inventories and work in progress 360.3 380.1 299.2
Receivables 351.4 390.6 594.7
Cash and cash equivalents 29.2 32.1 68.0
Assets 1,392.7 1,471.0 1,644.5
Shareholders' equity and liabilities
Shareholders' equity 443.8 493.4 509.7
Long-term interest-bearing liabilities 176.4 232.9 218.6
Other long-term liabilities 18.0 19.9 18.7
Current interest-bearing liabilities 360.7 331.8 437.6
Other current liabilities 315.3 338.9 372.0
Provisions 78.5 54.1 87.9
Shareholders' equity and liabilities 1,392.7 1,471.0 1,644.5
Equity ratio, % 31.9 33.5 31.0
Gearing, % 114 108 115
EUR 1.00 = USD 1.57 1.35 1.47
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Fair
Fund Trans- value Retai- Mino- Total
Pre- for lation and ned rity share-
Share mium own diffe- other ear- inte- holders'
capital fund shares rences reserves nings Total rests equity
Balance at
1 Jan 2007 286.8 6.9 -41.5 4.2 296.1 552.5 3.6 556.1
Translation
differences -5.9 -5.9 -5.9
Cash flow
hedges -0.8 -0.8 -0.8
Net income
recognized
directly
in equity -5.9 -0.8 -6.7 -6.7
Net result -21.5 -21.5 0.2 -21.3
Total
recognized
income and
expense for
the period -5.9 -0.8 -21.5 -28.2 0.2 -28.0
Dividend
distribution -36.0 -36.0 -36.0
Warrants 0.0 0.0
Warrants
exercised 2.0 -0.7 1.3 1.3
2.0 -0.7 -36.0 -34.7 -34.7
Balance at
30 Jun 2007 288.8 6.2 -47.4 3.4 238.6 489.6 3.8 493.4
Balance at
1 Jan 2008 289.3 15.0 -7,5 -66.8 -2.7 278.9 506.2 3.5 509.7
Translation
differences -16.6 -16.6 -16.6
Cash flow
hedges 3.8 3.8 3.8
Net income
recognized
directly
in equity -16.6 3.8 -12.8 -12.8
Net result -16.6 -16.6 0.0 -16.6
Total
recognized
income and
expense for
the period -16.6 3.8 -16.6 -29.4 0.0 -29.4
Dividend
distribution -36.3 -36.3 0.0 -36.3
Warrants 0.7 0.7 0.7
Warrants
exercised 2.9 -2.9 0.0 0.0
Other
change in
minority
interests -0.9 -0.9
2.9 -2.9 -35.6 -35.6 -0.9 -36.5
Balance at
30 Jun 2008 292.2 12.1 -7.5 -83.4 1.1 226.7 441.2 2.6 443.8
CONTINGENT LIABILITIES AND SECURED ASSETS, CONSOLIDATED
30 June, 30 June, 31 December, 2008 2007 2007
Mortgages pledged 0.0 4.1 2.8
Guarantees 4.7 3.1 4.5
Liabilities for leasing and rental 105.7
agreements 101.4 114.3
Other liabilities 45.2 40.6 48.2
There are no guarantees of contingencies given for the management of
the company, the shareholders or the associated companies.
DERIVATIVE FINANCIAL INSTRUMENTS
30 June, 30 June, 31 December,
2008 2007 2007
Nominal value
Foreign exchange forward contracts 443.3 386.0 417.1
Forward rate agreements 0.0 400.0 100.0
Interest rate swaps 213.5 174.0 217.9
Fair value
Foreign exchange forward contracts 9.1 0.7 0.0
Forward rate agreements 0.0 0.1 0.0
Interest rate swaps -0.1 2.0 -1.6
QUARTERLY BREAKDOWNS OF NET SALES AND EBIT
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
NET SALES 2008 2008 2007 2007 2007 2007 2006 2006
Winter and Outdoor 104.6 162.0 304.9 280.6 100.2 144.4 387.1 291.2
Ball Sports 130.9 144.0 107.0 109.9 150.4 163.6 111.5 120.3
Fitness 49.6 57.0 85.2 72.3 59.7 73.8 83.0 60.4
Total 285.1 363.0 497.1 462.8 310.3 381.8 581.6 471.9
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
EBIT 2008 2008 2007 2007 2007 2007 2006 2006
Winter and Outdoor -26.7 -14.6 35.2 48.9 -28.8 -34.4 56.3 48.0
Ball Sports 11.3 15.7 8.0 5.4 15.0 19.8 5.2 7.9
Fitness -0.4 3.7 13.0 8.1 6.2 9.9 12.7 6.0
Headquarters 8.0 -4.8 -2.5 -3.3 -5.2 -3.1 -4.5 -4.0
-7.8 0.0 53.7 59.1 -12.8 -7.8 69.7 57.9
Non-recurring
expenses related to
the reorganization of
Winter Sports
Equipment business
area - - -42.7 - - - - -
Total -7.8 0.0 11.0 59.1 -12.8 -7.8 69.7 57.9
All forecasts and estimates presented in this report are based on the
management's current judgment of the economic environment. The actual
results may differ significantly.
AMER SPORTS CORPORATION
Board of Directors
For further information, please contact:
Mr Tommy Ilmoni, Vice President, Investor Relations, tel. +358 9 7257
8233
Mr Pekka Paalanne, Executive Vice President & CFO, tel. +358 9 7257
8212
Mr Roger Talermo, President & CEO, tel. +358 9 7257 8210
PRESS AND ANALYST CONFERENCE
A combined news conference, conference call and live webcast
concerning the interim results will be held on August 6, 2008, at
3:00 pm Finnish time at Amer Sports headquarters (address:
Mäkelänkatu 91, Helsinki). The event will be held in English. For
instructions on how to participate in the conference call, visit the
Amer Sports website at www.amersports.com. An on-demand webcast of
the conference will be available on the website on August 6, 2008, at
approximately 6:00 pm Finnish time.
The conference call numbers are:
+1 334 323 6201 (if calling from the U.S.)
+44 (0)20 7162 0025 (if calling from the rest of the world)
FINANCIAL REPORTING
In 2008, Amer Sports will publish its 1-9 interim results on Tuesday,
October 28, 2008:
* a stock exchange bulletin at 1:00 pm (Finnish time)
* a combined news conference, conference call and live
webcast at 3:00 pm (Finnish time).
AMER SPORTS CORPORATION
Communications
Ms Maarit Mikkonen
Communications Manager
Tel. +358 9 7257 8306, e-mail: maarit.mikkonen@amersports.com
www.amersports.com
DISTRIBUTION
OMX Nordic Exchange Helsinki
Major media
www.amersports.com
