* Amer Sports net sales decreased 6% to EUR 1,081.3 million. In
local currencies net sales were at last year's level.
* Earnings before interest and taxes (EBIT) improved to EUR 43.7
million (38.5), including, however, a capital gain of 13 million
euros from selling the company's corporate headquarters building
during Q2/2008. Earnings per share amounted to EUR 0.22 (0.23).
* Q3 net sales and EBIT were below last year's level mainly due to
the timing of winter sports equipment deliveries to retailers. The
order book for the remaining year is therefore higher than it was
at the same time last year.
* Full-year guidance revised: Amer Sports EBIT, excluding a capital
gain of EUR 13 million, is expected to be between EUR 80-90
million. Previous guidance was EUR 90-105 million.
EUR million Q3/ Q3/ Change 1-9/ 1-9/ Change
2008 2007 % %*) 2008 2007 % %*) 2007
Net sales 433.2 462.8 -6 -2 1,081.3 1,154.9 -6 0 1,652.0
Gross profit 186.2 192.1 -3 448.7 462.2 -3 664.4
EBIT before
non-
recurring
items 51.5 59.1 -13 -9 43.7 38.5 14 37 92.2
Non-recurring
items - - - - -42.7
EBIT 51.5 59.1 -13 -9 43.7 38.5 14 37 49.5
Financing
income and
expenses -7.7 -7.8 1 -22.0 -15.6 -41 -24.9
Earnings
before taxes 43.8 51.3 -15 21.7 22.9 -5 24.6
Net result 32.9 38.5 -15 16.3 17.2 -5 18.5
Earnings per
share, EUR 0.45 0.53 0.22 0.23 0.25
Earnings per
share,
excluding
non-recurring
items, EUR 0.45 0.53 0.22 0.23 0.70
*) Change % in local currency terms
ROGER TALERMO, PRESIDENT AND CEO:"Amer Sports' business developed in the third quarter according to
our expectations except for the Fitness segment. The challenging
conditions in the North American consumer market have continued to
affect Precor's consumer business more than we previously
anticipated, and we have experienced major difficulties in our dealer
network."The high-season for winter sports equipment shipments to retailers
started somewhat later than last year and consequently our sales in
local currencies were 13% lower in the quarter compared with last
year. Thanks to clearly more pre-order deliveries booked for Q4 and
as a result of already completed profitability-improving measures,
the Winter Sports Equipment business is set to improve its
profitability substantially already this year."Despite the difficult macro environment, our Ball Sports segment had
a solid quarter. Thanks to the strategic decisions we made last year,
I'm happy to report that Wilson Golf is on track to reach positive
numbers for the full year. Our success in Apparel and Footwear
business has continued with both sales and earnings growing more than
20% in the third quarter. This is primarily the result of Salomon's
award-winning outdoor footwear and continued strong growth of the
Arc'teryx brand. The outlook continues to be encouraging with
pre-orders for the spring/summer 2009 season growing at a
double-digit rate."Given the weak worldwide consumer confidence, Amer Sports' outlook
is more uncertain than normally at this time of the year. With this
in mind and as the last quarter is seasonally the strongest for Amer
Sports, we currently anticipate full-year operating results to be
between EUR 80-90 million."
NET SALES AND EBIT IN JULY-SEPTEMBER
Amer Sports Q3 net sales decreased 6% to EUR 433.2 million (462.8).
Net sales in local currency terms decreased 2%.
Net sales by business segment were as follows: Winter and Outdoor 62%
(Winter Sports Equipment 31%), Ball Sports 25% and Fitness 13%. Net
sales in Ball Sports were at last year's level whereas net sales
decreased 5% in Winter and Outdoor and 24% in Fitness. In local
currency terms, net sales in Ball Sports increased 8%, but Winter and
Outdoor decreased 2% and Fitness 18%.
The geographical breakdown of net sales was as follows: EMEA (Europe,
Middle East and Africa) 48%, the Americas (North, South and Central
America) 43% and Asia Pacific (including Japan and Australia) 9%.
Sales increased 7% in Asia Pacific but decreased 9% in the Americas
and 6% in EMEA. In local currency terms, net sales increased 10% in
Asia Pacific. In the Americas sales were at last year's level and
decreased 5% in EMEA.
The Group's earnings before interest and taxes (EBIT) amounted to EUR
51.5 million (59.1).
Earnings before taxes were EUR 43.8 million (51.3). Earnings per
share were EUR 0.45 (0.53). Net financial expenses amounted to EUR
7.7 million (7.8).
NET SALES AND EBIT IN THE REVIEW PERIOD, JANUARY-SEPTEMBER
Amer Sports net sales decreased 6% to EUR 1,081.3 million (1,154.9).
In local currencies net sales were at last year's level.
Net sales by business segment were as follows: Winter and Outdoor 49%
(Winter Sports Equipment 17%), Ball Sports 36% and Fitness 15%.
Winter and Outdoor sales increased 2%. Ball Sports sales decreased 9%
and Fitness 21%. In local currency terms, Winter and Outdoor net
sales increased 5%, Ball Sports were at last year's level and Fitness
decreased 12%.
The split of net sales by geographical segment was as follows: the
Americas 46%, EMEA 44%, and Asia Pacific 10%. Sales in EMEA and in
Asia Pacific were at last year's level but declined by 13% in the
Americas. In local currency terms, net sales were up 4% in Asia
Pacific and 2% in EMEA, but down 3% in the Americas.
EBIT improved to EUR 43.7 million (38.5), including a capital gain of
13 million euros from selling the company's corporate headquarters
building.
Earnings before taxes were EUR 21.7 million (22.9). Earnings per
share were EUR 0.22 (0.23). Net financial expenses amounted to EUR
22.0 million (15.6). 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 23.1
million (40.9). The Group's depreciation was EUR 25.7 million (23.1).
RESEARCH AND DEVELOPMENT
EUR 39.6 million (41.9) was invested in research and development,
representing 3.7% of net sales.
FINANCIAL POSITION AND CASH FLOW
Amer Sports' interest bearing liabilities at the end of September
were EUR 628.5 million, consisting of short-term debt of EUR 447.8
million and long-term debt of EUR 180.7 million. Liquid assets
amounted to EUR 24.8 million (32.6) at the end of the period. The
Group's net debt was EUR 603.7 million (EUR 614.5 million on
September 30, 2007).
In 2007, Amer Sports issued two private placement bonds for Finnish
institutional investors. The total amount of the bonds, maturing in
2009 and 2011, is EUR 150 million. Besides the bond, the long-term
debt consists of a USD 100 million term loan as a part of the
originally EUR 575 million loan syndicate of 2005, maturing in 2011
and 2012, and a EUR 34 million pension loan.
For short-term financing, Amer Sports has a EUR 325 million committed
revolving credit facility, maturing in 2011 and 2012, of which EUR 95
million has been used. Short-term financing is also raised with
Finnish commercial papers. At the end of September the outstanding
amount was EUR 268 million.
The equity ratio at the end of September was 30.9% (31.8%) and
gearing was 124% (120%).
Net cash flow from operating activities after interest and taxes was
EUR 9.9 million (28.5). Net cash flow from investing activities was
EUR 6.5 million (-36.3), including proceeds of 23 million euros from
selling the company's corporate headquarters building.
BUSINESS SEGMENTS
WINTER AND OUTDOOR
Q3/ Q3/ Change 1-9/ 1-9/ Change
EUR million 2008 2007 % %*) 2008 2007 % %*) 2007
Net sales
Winter Sports 134.8 159.0 -15 -13 189.2 205.5 -6 394.2
Equipment -8
Apparel and 87.4 72.3 21 26 197.0 169.2 20 229.4
Footwear 16
Cycling 23.5 27.5 -15 -14 82.9 83.7 -1 1 114.1
Sports Instruments 21.9 21.6 1 5 65.1 65.4 0 3 90.7
Discontinued - 0.2 - -
operations - 1.4 - - 1.7
Net sales, total 267.6 280.6 -5 -2 534.2 525.2 2 5 830.1
EBIT 45.7 48.9 -7 -3 4.4 -14.3 - - 20.9
*) In local currency terms
In the review period, Winter and Outdoor's net sales increased 5% in
local currency terms. The breakdown of net sales was as follows:
Apparel and Footwear 37%, Winter Sports Equipment 35%, Cycling 16%
and Sports Instruments 12%. EMEA accounted for 64%, the Americas for
26%, and Asia Pacific for 10% of net sales. Sales in local currencies
increased 15% in Asia Pacific, 7% in the Americas and in EMEA 2%.
EBIT improved to EUR 4.4 million (-14.3). The improvement reflects
the strong performance in Apparel and Footwear and the better
underlying profitability of the Winter Sports Equipment business.
Business areas
The Winter Sports Equipment pre-order season was completed in June.
Pre-orders were up 3% compared to last year. In the review period,
Winter Sports Equipment's net sales, however, decreased 6% in local
currency terms, as the third quarter sales were 13% below last year
due to later timing of deliveries. The order book for the remaining
year is 14% higher than at the same time last year. The
fastest-growing product group is ski boots, whereas the cross-country
skiing market continues to decline.
The restructuring process of the Winter Sports Equipment business
area has been concluded. Amer Sports acquired all the ski
manufacturing assets of its Bulgarian subcontractor in September at a
price of approximately EUR 5 million. The transaction was an
essential part of the Amer Sports strategy to ensure the group's
leadership as the world's most efficient winter sports equipment
manufacturer. The development in Winter Sports Equipment is in line
with the targets set in the restructuring program, and another
material improvement in profitability is expected in 2009.
The success in Apparel and Footwear continues with net sales
increasing 20% in local currency terms. The Central European
countries were leading the success, Salomon being the fastest-growing
brand in the outdoor footwear market. The sell-out of Salomon and
Arc'teryx products continues to be strong, and pre-orders for
spring/summer 2009 are growing at a double-digit pace. Due to the
increased costs in Chinese manufacturing, a material part of the
sourcing of products is planned to be moved to other Asian countries
within the next few years.
Mavic's net sales were at last year's level in local currency terms.
Mavic's third quarter was slow as supply chain issues restricted its
ability to respond to good demand for its new products. Measures have
been taken to balance the capacity with market demand. Despite these
issues, the profitability remained good. At the Beijing Olympic
Games, a total of 29 medals in cycling were won with Mavic wheels.
In the review period, Suunto's sales were up 3% in local currency
terms over last year, driven by good performance of the new outdoor
products and continued double-digit growth in training. The weaker
global macro-environment is having a negative impact on diving
product sales.
BALL SPORTS
Q3/ Q3/ Change 1-9/ 1-9/ Change
EUR million 2008 2007 % %*) 2008 2007 % %*) 2007
Net sales
Racquet Sports 56.7 55.7 2 7 181.9 191.9 -5 1 236.0
Team Sports 38.0 36.0 6 15 137.1 148.1 -7 4 195.5
Golf 15.9 18.2 -13 -5 66.5 83.9 -21 -14 99.4
Net sales, total 110.6 109.9 1 8 385.5 423.9 -9 -1 530.9
EBIT 6.6 5.4 22 27 33.6 40.2 -16 -8 48.2
*) In local currency terms
In the review period, Wilson's net sales were at last year's level in
local currency terms. The decision to license the golf business in
Japan and exit the OEM golf ball production in the U.S. adversely
impacted the turnover. The breakdown of net sales was as follows:
Racquet Sports 47%, Team Sports 36% and Golf 17%. The Americas
generated 63%, EMEA 26% and Asia Pacific 11% of net sales. On a
currency neutral basis, EMEA increased 5% and Asia Pacific declined
by 13% while the Americas remained at the previous year's level. When
removing the licensed Japan golf business from the previous year's
comparisons, Asia Pacific declined by 4%.
EBIT in local currency terms declined 8% to EUR 33.6 million (40.2).
Business areas
In local currencies, Racquet Sports net sales were at last year's
level. Racquet Sports growth was driven by a 5% increase in the EMEA
region offset by softness in Asia Pacific. The decline in Asia
Pacific is the result of a reorganization of the distribution network
in the region. The completion of the reorganization established a
solid distribution platform in China to drive long-term growth in the
region.
In the review period, Team Sports net sales increased 4% in local
currencies. Softness in the baseball protective retail category was
offset by solid growth in bats 13%, american football 9% and
basketball 9%. Strong growth is expected to continue driven by the
baseball category. The baseball category is experiencing a strong
sell-in for the 2009 season that will begin shipping in the last
quarter of the current year.
In local currencies, Golf net sales decreased 14%. A substantial
portion 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 are lower in the U.S. reflecting the challenge of
private label strategies in the retail segment of the market. The
target remains to make a profit this year.
FITNESS
Q3/ Q3/ Change 1-9/ 1-9/ Change
EUR million 2008 2007 % %*) 2008 2007 % %*) 2007
Net sales 55.0 72.3 -24 -18 161.6 205.8 -21 -12 291.0
EBIT 2.8 8.1 -65 -63 6.1 24.2 -75 -72 37.2
*) In local currency terms
In the review period, Precor's net sales declined by 12% in local
currencies. The Americas accounted for 71%, EMEA for 21%, and Asia
Pacific for 8% of net sales. In local currency terms, sales were up
15% in EMEA and down 8% in Asia Pacific and 19% in the Americas.
EBIT decreased to EUR 6.1 million (24.2) due to the significant fall
in sales and lower gross margins resulting from increased raw
material costs. Challenging conditions in the North American consumer
market continue to take their toll on Precor's consumer business.
Demand and consumer traffic have dropped far below any level of
expectation. In the second quarter, one-off quality issues amounting
to EUR 3 million also had a negative impact on the results. Measures
have continued to adjust Precor's cost base to the current market
situation. Precor's North American commercial business remained solid
through the third quarter.
Precor's sales and opportunities in EMEA continued to grow in the
third quarter, with record-setting revenues at the end of the quarter
and further inroads into major club accounts. The Adaptive Motion
Trainer® is a differentiating addition to the cardio lineup and
continues to create opportunities.
ACQUIRING THE ASSETS OF BULGARIAN SKI SUPPLIER
In order to ensure its cost leadership in ski manufacturing, Amer
Sports acquired all the ski manufacturing assets of its long-term
Bulgarian subcontractor, Pamporovo Ski, and as a result has assumed
full control of its operations. The price paid for all the acquired
assets is approximately EUR 5 million depending on the working
capital at the closing date. The assets of Pamporovo Ski will
transfer to Amer Sports before the end of the year. Pamporovo's 380
employees will continue with the newly established Amer Sports
Bulgaria AOOD.
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 6,138 people (6,706).
The Group employed an average of 6,264 people (6,660) during the
review period.
+-------------------------------------------------------------------+
| | September 30, | September 30, | December 31, |
| | 2008 | 2007 | 2007 |
|--------------------+---------------+---------------+--------------|
| Winter and Outdoor | 3,570 | 3,844 | 3,701 |
|--------------------+---------------+---------------+--------------|
| Ball Sports | 1,714 | 1,985 | 1,891 |
|--------------------+---------------+---------------+--------------|
| Fitness | 790 | 815 | 815 |
|--------------------+---------------+---------------+--------------|
| Headquarters | 64 | 62 | 58 |
|--------------------+---------------+---------------+--------------|
| Total | 6,138 | 6,706 | 6,465 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------+
| | September 30, | September 30, | December 31, |
| | 2008 | 2007 | 2007 |
|--------------+---------------+---------------+--------------|
| EMEA | 3,234 | 3,408 | 3,330 |
|--------------+---------------+---------------+--------------|
| Americas | 2,346 | 2,641 | 2,557 |
|--------------+---------------+---------------+--------------|
| Asia Pacific | 558 | 657 | 578 |
|--------------+---------------+---------------+--------------|
| Total | 6,138 | 6,706 | 6,465 |
+-------------------------------------------------------------+
Mr Max Alfthan, Amer Sports Corporation's Senior Vice President of
Communications and an Executive Board member, has accepted a position
outside Amer Sports.
AMER SPORTS SHARES AND SHAREHOLDERS
At the end of the review period Amer Sports had 12,243 registered
shareholders. Nominee registered represented 44.1% (58.3%) of the
shares.
During the period, a total of 82.3 million Amer Sports shares were
traded on the Helsinki Stock Exchange to a total value of EUR 1,059.3
million. The share turnover was 113.6% (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 EUR 8.50. The high for the period on the
Helsinki Stock Exchange was EUR 19.00 and the low EUR 8.20. The
average share price was EUR 12.87.
On September 30, 2008, the company had a market capitalization of EUR
618 million excluding own shares. The company has 340,900 own shares.
The number of own shares corresponds to 0.5% of all Amer Sports
shares.
Amer Sports Corporation's Board of Directors decided to transfer
104,100 shares held by the company gratuitously to the Group's key
personnel belonging to its share-based incentive plan. The transfer
date of the shares was September 1, 2008.
On September 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, July - September 2008
Amer Sports Corporation received information on September 9, 2008 to
the effect that owners of institutional investors and funds, who have
given full discretion over their investments to Silchester
International Investors Limited, has exceeded 15%. Silchester
International Investors Limited owned then 11,017,223 shares, which
represent 15.08% of Amer Sports Corporation's share capital and
voting rights.
Amer Sports Corporation received information on August 7, 2008 to the
effect that the Danske Bank A/S Helsinki Branch has completed
derivative contract transaction agreements on August 6, 2008 that
will, according to their current schemes, mature in November 2008. If
materialized, the ownership of Danske Bank A/S's Helsinki Branch will
fall under one-twentieth (1/20) no earlier than November 26, 2008.
The Danske Bank A/S Helsinki Branch owned then 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.
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
Considering the weak worldwide consumer confidence, the outlook is
clearly more uncertain than normally at this time of the year. Amer
Sports full-year EBIT, excluding a capital gain of EUR 13 million, is
expected to be between EUR 80-90 million. Previous guidance was EUR
90-105 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
1-9/ 1-9/ Change Q3/ Q3/ Change
2008 2007 % 2008 2007 % 2007
NET SALES 1,081.3 1,154.9 -6 433.2 462.8 -6 1,652.0
Cost of goods
sold -632.6 -692.7 -247.0 -270.7 -987.6
GROSS PROFIT 448.7 462.2 -3 186.2 192.1 -3 664.4
License income 10.2 13.1 3.3 4.0 18.0
Other operating
income 15.7 1.7 0.4 0.3 7.9
R&D expenses -39.6 -41.9 -11.4 -13.2 -57.7
Selling and
marketing
expenses -293.6 -300.9 -95.0 -94.1 -407.6
Administrative
and other
expenses -97.7 -95.7 -32.0 -30.0 -132.8
Non-recurring
expenses
related to the
reorganization of
Winter
Sports Equipment
business area - - - - -42.7
EARNINGS BEFORE
INTEREST AND
TAXES 43.7 38.5 14 51.5 59.1 -13 49.5
% of net sales 4.0 3.3 11.9 12.8 3.0
Financing income
and
expenses -22.0 -15.6 -7.7 -7.8 -24.9
EARNINGS BEFORE
TAXES 21.7 22.9 -5 43.8 51.3 -15 24.6
Taxes -5.4 -5.7 -10.9 -12.8 -6.1
NET RESULT 16.3 17.2 -5 32.9 38.5 -15 18.5
Attributable to:
Equity holders of
the
parent company 16.2 16.9 32.8 38.4 18.1
Minority
interests 0.1 0.3 0.1 0.1 0.4
Earnings per
share,
EUR 0.22 0.23 0.45 0.53 0.25
Earnings per
share,
diluted, EUR 0.22 0.23 0.45 0.53 0.25
Adjusted average
number of shares
in
issue less own
shares,
million 72.5 72.1 72.5 72.1 72.0
Adjusted average
number of shares
in
issue less own
shares,
diluted, million 72.5 73.0 72.5 73.0 73.0
Equity per share,
EUR 6.69 7.08 7.04
ROCE, % *) 5.5 10.4 4.8
ROE, % 4.3 4.2 3.5
Average rates
used:
EUR 1.00 = USD 1.52 1.34 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
1-9/ 1-9/ Change Q3/ Q3/ Change
2008 2007 % 2008 2007 % 2007
Winter and Outdoor 534.2 525.2 2 267.6 280.6 -5 830.1
Ball Sports 385.5 423.9 -9 110.6 109.9 1 530.9
Fitness 161.6 205.8 -21 55.0 72.3 -24 291.0
Total 1,081.3 1,154.9 -6 433.2 462.8 -6 1,652.0
EBIT BY BUSINESS SEGMENTS
1-9/ 1-9/ Change Q3/ Q3/ Change
2008 2007 % 2008 2007 % 2007
Winter and Outdoor 4.4 -14.3 - 45.7 48.9 -7 20.9
Ball Sports 33.6 40.2 -16 6.6 5.4 22 48.2
Fitness 6.1 24.2 -75 2.8 8.1 -65 37.2
Headquarters -0.4 -11.6 - -3.6 -3.3 - -14.1
43.7 38.5 14 51.5 59.1 -13 92.2
Non-recurring expenses
related
to the reorganization of
Winter
Sports Equipment business
area - - - - -42.7
Total 43.7 38.5 14 51.5 59.1 -13 49.5
GEOGRAPHIC BREAKDOWN OF NET SALES
1-9/ 1-9/ Change Q3/ Q3/ Change
2008 2007 % 2008 2007 % 2007
Americas 499.0 575.2 -13 185.7 204.4 -9 774.1
EMEA 473.5 471.0 1 206.6 220.1 -6 704.9
Asia Pacific 108.8 108.7 0 40.9 38.3 7 173.0
Total 1,081.3 1,154.9 -6 433.2 462.8 -6 1,652.0
CONSOLIDATED CASH FLOW STATEMENT
1-9/2008 1-9/2007 2007
EBIT 43.7 38.5 49.5
Depreciation and adjustments to cash flow
from operating activities 12.4 22.5 30.5
Change in working capital -15.9 -0.5 26.3
Cash flow from operating activities before
financing items and taxes 40.2 60.5 106.3
Interest paid and received -19.7 -11.8 -21.7
Income taxes paid -10.6 -20.2 -26.5
Cash flow from operating activities 9.9 28.5 58.1
Company divestments 3.6 - -
Capital expenditure on non-current tangible
and intangible assets -23.1 -40.9 -58.3
Proceeds from sale of tangible non-current
assets 26.0 4.6 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 6.5 -36.3 -51.6
Dividends paid -36.3 -36.1 -36.2
Issue of shares - 2.5 10.6
Repurchases of own shares - -7.5 -7.5
Change in net debt and other financial items -23.5 36.4 49.9
Cash flow from financing activities -59.8 -4.7 16.8
Liquid funds at 1 Jan 68.0 45.5 45.5
Translation differences 0.2 -0.4 -0.8
Change in liquid funds -43.4 -12.5 23.3
Liquid funds at 30 Sep/31 Dec 24.8 32.6 68.0
CONSOLIDATED BALANCE SHEET
30 September, 30 September, 31 December,
2008 2007 2007
Assets
Goodwill 270.4 275.6 270.9
Other intangible non-current
assets 205.5 208.8 209.5
Tangible non-current assets 125.2 129.3 135.9
Other non-current assets 65.3 53.7 66.3
Inventories and work in
progress 378.4 358.3 299.2
Receivables 514.0 549.3 594.7
Cash and cash equivalents 24.8 32.6 68.0
Assets 1,583.6 1,607.6 1,644.5
Shareholders' equity and
liabilities
Shareholders' equity 488.7 511.9 509.7
Long-term interest-bearing
liabilities 180.7 228.7 218.6
Other long-term liabilities 17.3 17.4 18.7
Current interest-bearing
liabilities 447.8 418.4 437.6
Other current liabilities 380.3 381.5 372.0
Provisions 68.8 49.7 87.9
Shareholders' equity and
liabilities 1,583.6 1,607.6 1,644.5
Equity ratio, % 30.9 31.8 31.0
Gearing, % 124 120 115
EUR 1.00 = USD 1.46 1.42 1.47
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Fair
value
Fund Trans- and Retai- Mino- Total
Pre- for lation other ned rity share-
Share mium own diffe- reser- ear- inte- holders'
capital fund shares rences ves 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 -15.0 -15.0 -15.0
Cash flow
hedges -5.6 -5.6 -5.6
Net income
recognized
directly
in equity -15.0 -5.6 -20.6 -20.6
Net result 16.9 16.9 0.3 17.2
Total
recognized
income and
expense for
the period -15.0 -5.6 16.9 -3.7 0.3 -3.4
Repurchases
of own
shares -7.5 -7.5 -7.5
Dividend
distribution -36.1 -36.1 -36.1
Warrants 0.3 0.3 0.3
Warrants
exercised 2.0 0.5 2.5 2.5
2.0 0.5 -7.5 -35.8 -40.8 -40.8
Balance at
30 Sep 2007 288.8 7.4 -7.5 -56.5 -1.4 277.2 508.0 3.9 511.9
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 -4.0 -4.0 -4.0
Cash flow
hedges 3.0 3.0 3.0
Net income
recognized
directly
in equity -4.0 3.0 -1.0 -1.0
Net result 16.2 16.2 0.1 16.3
Total
recognized
income and
expense for
the period -4.0 3.0 16.2 15.2 0.1 15.3
Reissuance
of
own shares 1.8 1.8 1.8
Dividend
distribution -36.3 -36.3 -36.3
Warrants -0.9 -0.9 -0.9
Warrants
exercised 2.9 -2.9 0.0 0.0
Other change
in minority
interests -0.9 -0.9
2.9 -2.9 1.8 -37.2 -35.4 -0.9 -36.3
Balance at
30 Sep 2008 292.2 12.1 -5.7 -70.8 0.3 257.9 486.0 2.7 488.7
CONTINGENT LIABILITIES AND SECURED ASSETS, CONSOLIDATED
30 September, 30 September, 31 December,
2008 2007 2007
Mortgages pledged 0.0 3.1 2.8
Guarantees 5.0 4.2 4.5
Liabilities for leasing and
rental
agreements 111.2 117.3 105.7
Other liabilities 44.5 42.2 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 September, 30 September, 31 December,
2008 2007 2007
Nominal value
Foreign exchange forward
contracts 488.8 430.2 417.1
Forward rate agreements 0.0 200.0 100.0
Interest rate swaps 218.3 220.5 217.9
Fair value
Foreign exchange forward
contracts -1.3 -0.3 0.0
Forward rate agreements 0.0 0.0 0.0
Interest rate swaps -1.0 -0.5 -1.6
QUARTERLY BREAKDOWNS OF NET SALES AND EBIT
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
NET SALES 2008 2008 2008 2007 2007 2007 2007 2006
Winter and Outdoor 267.6 104.6 162.0 304.9 280.6 100.2 144.4 387.1
Ball Sports 110.6 130.9 144.0 107.0 109.9 150.4 163.6 111.5
Fitness 55.0 49.6 57.0 85.2 72.3 59.7 73.8 83.0
Total 433.2 285.1 363.0 497.1 462.8 310.3 381.8 581.6
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
EBIT 2008 2008 2008 2007 2007 2007 2007 2006
Winter and Outdoor 45.7 -26.7 -14.6 35.2 48.9 -28.8 -34.4 56.3
Ball Sports 6.6 11.3 15.7 8.0 5.4 15.0 19.8 5.2
Fitness 2.8 -0.4 3.7 13.0 8.1 6.2 9.9 12.7
Headquarters -3.6 8.0 -4.8 -2.5 -3.3 -5.2 -3.1 -4.5
51.5 -7.8 0.0 53.7 59.1 -12.8 -7.8 69.7
Non-recurring
expenses related to
the reorganization of
Winter Sports
Equipment business
area - - - -42.7 - - - -
Total 51.5 -7.8 0.0 11.0 59.1 -12.8 -7.8 69.7
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, IR and Corporate Communications,
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
TELEPHONE CONFERENCE
An English-language telephone conference call for investors and
analysts will be held at 3:00 pm Finnish time. To participate in the
conference call, please call +44 (0)20 3003 2666 (UK/international
dial-in number). The conference can also be followed from a direct
transmission on the internet, at www.amersports.com. A recorded
version will later be available at the same address: replay number
+44 (0)20 8196 1998 and access code 6801881 #. No press conference
will be held at Amer Sports headquarters.
AMER SPORTS CORPORATION
Communications
Ms Maarit Mikkonen
Communications Manager
Tel. +358 9 7257 8306, e-mail: maarit.mikkonen@amersports.com
www.amersports.com
DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.amersports.com
