STOCK EXCHANGE RELEASE February 5, 2009 at 1:00 pm
* Amer Sports Q4/08 net sales of EUR 495.3 million were at
last year's level (497.1). In local currencies net sales decreased
3%. EBIT was EUR 35.2 million (11.0). Last year's results, however,
include EUR 42.7 million restructuring costs. Earnings per share
was EUR 0.25 (0.02).
* Full-year 2008 net sales decreased 5% to EUR 1,576.6
million (1,652.0). In local currencies net sales were at last
year's level. Earnings before interest and taxes (EBIT) were EUR
78.9 million (49.5), including a capital gain of 13.1 million euros
from selling the company's corporate headquarters building in
April. Earnings per share were EUR 0.47 (0.25).
* The Amer Sports outlook is clearly more uncertain than
normally at this time of year. The company's results in 2009 are
anticipated to improve thanks to better cost efficiency in the
Winter Sports Equipment business in particular.
* The Amer Sports Board of Directors proposes that a
dividend of EUR 0.16 be paid per share (0.50 per share for 2007).
Q4/ Q4/ Change Change
EUR million 2008 2007 % %*) 2008 2007 % %*)
Net sales 495.3 497.1 0 -3 1,576.6 1,652.0 -5 -1
Gross profit 184.3 202.2 -9 633.0 664.4 -5
EBIT before non-
recurring items 35.2 53.7 -34 78.9 92.2 -14
Non-recurring items - -42.7 - -42.7
EBIT 35.2 11.0 78.9 49.5 59
Financing income and
expenses -11.3 -9.3 -22 -33.3 -24.9 -34
Earnings before taxes 23.9 1.7 45.6 24.6 85
Net result 17.7 1.3 34.0 18.5 84
Earnings per share,
EUR 0.25 0.02 0.47 0.25
*) In local currency terms
ROGER TALERMO, PRESIDENT AND CEO:"The last quarter of the year winter sports progressed due to product
innovations and good snow conditions. Fitness market continued to be
a challenge and Precor performed below expectations. Our Q4 EBIT of
EUR 35 million is also burdened by one-time product recall costs from
Mavic and Atomic of some EUR 6 million. Looking at the year as a
whole, Group sales were at last year's level thanks to the continued
success of our Apparel and Footwear business. Despite the several
cost cutting measures we made during the year, these could not offset
the drastic and rapid sales decline in our Fitness business.
The absolute priority in 2009 will be on strengthening the balance
sheet. We are ready to consider all necessary measures to achieve
this. New programs have been started to significantly reduce working
capital. These will bring results towards the end of the year.
Furthermore, our capital expenditures will be lower than during the
previous years. We are also continuing to cut expenses in most of our
businesses in order to adjust our organization to the current market
conditions. All in all, with our improving cash flow and other
possible measures, I believe that our balance sheet will strengthen
during the current year.
Also the sporting goods sector is affected by the financial crisis.
Even if sell-out from stores has remained on a relatively healthy
level, many of our retail clients have taken a cautious approach and
are destocking their inventories. In some cases again, our clients
have been postponing their ordering due to the tight credit
conditions in the financial markets. All in all, in the environment
we are in, our outlook is more uncertain than normally. Our current
view is, however, that our earnings in 2009 will improve thanks to
the improved cost efficiency, in Winter Sports Equipment in
particular."
NET SALES AND EBIT IN OCTOBER - DECEMBER
Amer Sports Q4 net sales were at least year's level, EUR 495.3
million (497.1). Net sales in local currency terms decreased 3%.
Net sales by business segment were as follows: Winter and Outdoor 66%
(Winter Sports Equipment 41%), Ball Sports 22% and Fitness 12%. Net
sales increased in Winter and Outdoor 7% and in Ball Sports 3%
whereas net sales decreased 31% in Fitness. In local currency terms,
net sales in Winter and Outdoor increased 6% but decreased 2% in Ball
Sports and 36% in Fitness.
The geographical breakdown of net sales was as follows: EMEA (Europe,
Middle East and Africa) 50%, the Americas (North, South and Central
America) 36% and Asia Pacific (including Japan and Australia) 14%.
Sales increased 7% in EMEA and 4% in Asia Pacific but decreased 10%
in the Americas. In local currency terms, net sales increased 6% in
EMEA and were at last year's level in Asia Pacific. In the Americas
sales decreased 15%.
The Group's earnings before interest and taxes (EBIT) were EUR 35.2
million (11.0). The results are burdened by one-time product recall
costs of Mavic and Atomic of EUR 6 million. Last year's results
include EUR 42.7 million restructuring costs. Excluding both of these
items the results weakened by 23% due to weaker profitability in both
Fitness and Ball Sports.
Earnings before taxes were EUR 23.9 million (1.7). Earnings per share
was EUR 0.25 (0.02). Net financial expenses amounted to EUR 11.3
million (9.3).
NET SALES AND EBIT IN THE REVIEW PERIOD, JANUARY-DECEMBER
Amer Sports net sales decreased 5% to EUR 1,576.6 million (1,652.0).
In local currencies net sales were at last year's level.
Net sales by business segment were as follows: Winter and Outdoor 55%
(Winter Sports Equipment 25%), Ball Sports 31% and Fitness 14%.
Winter and Outdoor sales increased 4%, Ball Sports sales decreased
7%, and Fitness decreased 24%. In local currency terms, Winter and
Outdoor net sales increased 5%, Ball Sports were at last year's level
and Fitness decreased 20%.
The split of net sales by geographical segment was as follows: EMEA
46%, the Americas 43% and Asia Pacific 11%. Sales in EMEA increased
3% and in Asia Pacific 2% but declined 12% in the Americas. In local
currency terms, net sales increased 4% in EMEA, were at last year's
level in Asia Pacific, and decreased 7% in the Americas.
EBIT was EUR 78.9 million, compared with EUR 49.5 million in 2007.
However, excluding the EUR 42.7 million restructuring costs in 2007
and excluding the capital gain of EUR 13.1 million in 2008, EBIT was
65.8 in 2008 compared with EUR 92.2 million in 2007. The main reason
for the weakened profitability is the substantial sales drop in the
Fitness business.
Earnings before taxes were EUR 45.6 million (24.6). Earnings per
share were EUR 0.47 (0.25). Net financial expenses amounted to EUR
33.3 million (24.9). Last year's corresponding figure was reduced by
realized interest rate swaps, which resulted in a gain of EUR 6.4
million.
Taxes for the period were EUR 11.6 million (6.1). The Group's tax
rate was 25% (25%).
CAPITAL EXPENDITURE
The Group's capital expenditure on fixed assets totaled EUR 43.1
million (58.3). The Group's depreciation was EUR 38.2 million (33.9).
RESEARCH AND DEVELOPMENT
EUR 55.6 million (57.7) was invested in research and development,
representing 3.5% of net sales.
FINANCIAL POSITION AND CASH FLOW
Amer Sports interest bearing liabilities at the end of December were
EUR 687.7 million (656.2), consisting of short-term debt of EUR 507.8
million and long-term debt of EUR 179.9 million. Liquid assets
amounted to EUR 72.1 million (68.0) at the end of the period. The
Group's net debt was EUR 615.6 million (588.2).
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 maturing in 2011,
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 31.4 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
255 million has been used. Furthermore, the company has, as of
January 1, 2009, new committed revolving credit facilities of EUR 60
million maturing in 2010. Short-term financing is also raised with a
domestic commercial paper program, of which EUR 113 million had been
used at the end of December.
The equity ratio at the end of December was 30.6% (31.0%) and gearing
was 121% (115%).
Net cash flow from operating activities after interest and taxes was
EUR 10.5 million (58.1). Net cash flow from investing activities was
EUR -14.6 million (-51.6), including proceeds of EUR 23 million from
selling the company's corporate headquarters building.
BUSINESS SEGMENTS
WINTER AND OUTDOOR
Q4/ Q4/ Change Change
EUR million 2008 2007 % %*) 2008 2007 % %*)
Net sales
Winter Sports Equipment 202.7 188.7 7 5 391.9 394.2 -1 0
Apparel and Footwear 67.9 60.2 13 17 264.9 229.4 15 19
Cycling 31.3 30.4 3 1 114.2 114.1 0 1
Sports Instruments 24.7 25.3 -2 -3 89.8 90.7 -1 1
Discontinued operations - 0.3 - - - 1.7 - -
Net sales, total 326.6 304.9 7 6 860.8 830.1 4 5
EBIT 36.7 35.2 4 5 41.1 20.9 97 -
*) In local currency terms
In 2008, net sales increased 5% in local currency terms. The
breakdown of net sales was as follows: Winter Sports Equipment 46%,
Apparel and Footwear 31%, Cycling 13% and Sports Instruments 10%.
EMEA accounted for 65%, the Americas for 23%, and Asia Pacific for
12% of net sales. Sales in local currencies were up 11% in Asia
Pacific, 4% in EMEA, and 4% in the Americas.
In 2008, EBIT increased to EUR 41.1 million (20.9). The improvement
reflects the restructuring of the winter sports equipment business
and the strong growth in sales of apparel and footwear.
In Q4, EBIT was EUR 36.7 million (35.2) driven by a healthy 6% sales
growth in local currencies. The reported results in Q4 include costs
of approximately EUR 6 million for voluntary product recalls of both
Mavic R-SYS front wheels and heel components of certain Atomic ski
bindings.
Business areas
The recovery of the winter sports equipment business was slower than
expected in 2008 despite favorable weather conditions. Alpine Europe
as a region and alpine boots as a product category grew in high
single digits, but continued weakness in the US and the Nordic skiing
markets depressed global sales. Retailers' attempts to reduce their
own inventories decreased the amount of re-orders. Atomic started a
voluntary recall of the heel components of certain ski bindings.
Winter Sports Equipment net sales of EUR 391.9 million were at last
year's level in local currency terms. In January 2008 Amer Sports
announced a plan to restructure the Winter Sports business, as a
result of which four production sites and approximately 400 jobs were
reduced worldwide. The plan was carried out according to targets, and
the savings of more than EUR 20 million will be visible in 2009. The
cost cuts already helped to improve the profitability of the business
area in 2008.
Favorable development of Salomon and Arc'teryx apparel and Salomon
footwear sales continued in all key markets. The outdoor trend
remained solid, and trail running as a category continued to gain
popularity. Net sales in Apparel and Footwear increased 19% in local
currency terms to EUR 264.9 million.
Bicycle component manufacturer Mavic's net sales remained flat in
local currency terms at EUR 114.2 million. Growth opportunities were
impacted by supply chain issues. At the end of the year, Mavic
announced a voluntary recall of its R-SYS front wheels.
Net sales of Sports Instruments were at last year's level in local
currency terms. However, sales in 2008 do not include Ursuk, which
was divested beginning of the year. The wristop category continued
its growth with a 20% increase compared to 2007, driven by continued
new product launches as well as sales channel extensions. The market
for diving equipment declined in 2008 as a result of the economic
environment, and Suunto followed the overall market trend.
Winter and Outdoor outlook 2009
Despite an expected slowdown in retail sales, the profitability of
Winter and Outdoor segment is expected to improve in 2009 due to the
positive impacts of the changes in the winter sports equipment
business that were completed during 2008. In the apparel and footwear
business, the strong order book and good sell-through of products
should allow it to grow faster than its peers in the industry. The
outlook for Mavic in 2009 is cautious, reflecting the uncertainty of
bike manufacturers. Suunto's sales are expected to grow, thanks to
new channel entry and new product introductions.
BALL SPORTS
Q4/ Q4/ Change Change
EUR million 2008 2007 % %*) 2008 2007 % %*)
Net sales
Racquet Sports 45.1 44.1 2 -1 227.0 236.0 -4 1
Team Sports 52.8 47.4 11 3 189.9 195.5 -3 3
Golf 12.1 15.5 -22 -22 78.6 99.4 -21 -15
Net sales, total 110.0 107.0 3 -2 495.5 530.9 -7 -1
EBIT 3.4 8.0 -58 -58 37.0 48.2 -23 -17
*) In local currency terms
In 2008, net sales were on par with the previous year in local
currency terms at EUR 495.5 million. The breakdown of net sales was
as follows: Racquet Sports 46%, Team Sports 38% and Golf 16%. The
Americas accounted for 64%, EMEA 24% and Asia Pacific 12% of net
sales. Sales in local currencies were up 4% in EMEA and were at last
year's level in the Americas and down 10% in Asia Pacific. The
decrease in Asia Pacific was due to licensing the golf business in
Japan.
In 2008, EBIT decreased 23% to EUR 37.0 million. The EBIT shortfall
reflects mainly the weakened economic environment. This impacted
trading conditions in the US in particular and consequently resulted
in lower than expected overall sales.
In Q4, EBIT declined to EUR 3.4 million (8.0) even though sales were
close to the previous year's level. The weakened profitability
reflects mainly inventory adjustments and low margin sales in the
Team Sports business.
Business areas
Racquet Sports net sales of EUR 227.0 million were at last year's
level in local currency terms. During the year, two key strategic
initiatives were executed to drive future growth by establishing a
Chinese infrastructure and implementing an in-house tennis apparel
strategy. Racquet Sports maintained a leadership position in the
marketplace with [K] Factor rackets and a strong presence on tour.
Team Sports net sales increased 3% in local currencies to EUR 189.9
million. The key growth areas were bats 15%, soccer 12% and
basketballs 8%. Regional team sports strategies have been implemented
to expand market share in Latin American soccer, European basketball
and Asian baseball.
Golf net sales declined 15% in local currencies to EUR 78.6 million.
The decline reflects mainly the decision to license the golf business
in Japan and exit underperforming business areas. The golf market
remained competitive. Retail distribution continued to consolidate
and private label brands became more prevalent. Wilson gained
momentum in the premium club category with a focused iron strategy.
Ball Sports outlook 2009
Sales and profitability are expected to remain at the previous year's
level. The Racquet and Team Sports businesses will maintain their
leadership positions. Golf will continue to improve its performance.
However, economic development in North America, in particular,
remains a factor of uncertainty in the outlook.
FITNESS
Q4/ Q4/ Change Change
EUR million 2008 2007 % %*) 2008 2007 % %*)
Net sales 58.7 85.2 -31 -36 220.3 291.0 -24 -20
EBIT -2.3 13.0 - - 3.8 37.2 -90 -89
*) In local currency terms
In 2008, Precor's net sales declined 20% in local currencies to EUR
220.3 million. The Americas accounted for 72%, EMEA for 21%, and Asia
Pacific for 7% of net sales. In local currency terms, sales were up
3% in EMEA and down 19% in Asia Pacific and 25% in the Americas.
In 2008, EBIT decreased to EUR 3.8 million (37.2) due to the
significant fall in sales and lower gross margins resulting from a
lower capacity utilization rate as well as increased raw material
costs.
In Q4, EBIT was EUR -2.3 million (13.0). The weakened profitability
reflects the significant fall in sales.
Consumer products sales have been greatly impacted by significantly
lower consumer spending due to the uncertain economic environment.
Consumer sales are affected by both the overall withdrawal from
discretionary spending by many households and by a significant
reduction in the number of specialty dealers compared to the prior
year.
Demand for commercial equipment remained healthy until the late fall,
after which the tight credit market made it more difficult for small
customers to finance equipment investments. Furthermore, customers
became concerned about the general economic outlook and consequently
postponed their buying decisions.
During Q4 Precor implemented two rounds of layoffs. The total number
of eliminated positions was 41 and those positions are spread across
all departments in the company.
Fitness outlook 2009
Due to the globally weak macro-economic environment, the short-term
outlook for Precor remains uncertain. Many customers are impacted by
the tight credit market and are postponing their investments in new
fitness equipment. The long-term fundamental drivers of the fitness
market remain positive and Precor is well-positioned for a rapid
recovery as the broader economy begins to improve. Precor is focused
on strengthening retail distribution in the US and geographical
expansion.
ACQUIRING THE ASSETS OF BULGARIAN SKI SUPPLIER
In order to ensure its cost leadership in ski manufacturing, Amer
Sports acquired in September, 2008 all the ski manufacturing assets
of its long-term Bulgarian supplier, Pamporovo Ski, and as a result
has assumed full control of its operations. The price for all the
acquired assets was approximately EUR 5 million. The assets of
Pamporovo Ski were transferred to Amer Sports in November.
Pamporovo's 330 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, 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 year, the Group employed 6,338 people (6,465). The
Group employed an average of 6,285 people (6,582) during the review
period.
+------------------------------------------------------------+
| | December 31, | December 31, | Change, |
| | 2008 | 2007 | % |
|--------------------+--------------+--------------+---------|
| Winter and Outdoor | 3,777 | 3,701 | 2 |
|--------------------+--------------+--------------+---------|
| Ball Sports | 1,731 | 1,891 | -8 |
|--------------------+--------------+--------------+---------|
| Fitness | 765 | 815 | -6 |
|--------------------+--------------+--------------+---------|
| Headquarters | 65 | 58 | 12 |
|--------------------+--------------+--------------+---------|
| Total | 6,338 | 6,465 | -2 |
+------------------------------------------------------------+
+------------------------------------------------------+
| | December 31, | December 31, | Change, |
| | 2008 | 2007 | % |
|--------------+--------------+--------------+---------|
| EMEA | 3,428 | 3,330 | 3 |
|--------------+--------------+--------------+---------|
| Americas | 2,337 | 2,557 | -9 |
|--------------+--------------+--------------+---------|
| Asia Pacific | 573 | 578 | -1 |
|--------------+--------------+--------------+---------|
| Total | 6,338 | 6,465 | -2 |
+------------------------------------------------------+
Mr Vincent Wauters was named Amer Sports Senior Vice President,
Supply Chain and Information Technology on May 28, 2008. Wauters
joined Amer Sports on September 1, 2008. He reports to Mr Roger
Talermo, Amer Sports President and CEO and is a member of the
Executive Board.
Mr Max Alfthan, Amer Sports Corporation's Senior Vice President of
Communications and an Executive Board member, accepted a position
outside Amer Sports in August, 2008.
SHARES AND SHAREHOLDERS
At the end of the year Amer Sports had 12,320 registered shareholders
(12,280). Nominee registered represented 42.6% (47.3%) of the shares.
During the period, a total of 101.3 million Amer Sports shares were
traded on the Helsinki Stock Exchange to a total value of EUR 1,172.5
million. The share turnover was 139.6% (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 5.36. The high for the period on the
Helsinki Stock Exchange was EUR 19.00 and the low EUR 4.90. The
average share price was EUR 11.58.
On December 31, 2008, the company had a market capitalization of EUR
389.7 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 transferred 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.
Exercise of warrants and increases in share capital
Amer Sports Corporation warrants were registered as follows:
Warrant Increase in share capital, Increase in share capital,
shares EUR
2002 649,113 2,596,452
2003 26,100 104,400
2004 44,793 179,172
Shareholder rights commenced from the registration date February 13,
2008. The new shares were listed on the Helsinki Exchanges on
February 14, 2008.
The highest price of the 2003 warrants on the OMX Helsinki Stock
Exchange was EUR 6.50 and the lowest EUR 0.05. In 2008, a total of
5,679 warrants were traded at a total price of EUR 21,789.
The highest price of the 2004 warrants on the OMX Helsinki Stock
Exchange was EUR 14.00 and the lowest EUR 1.25. In 2008, a total of
18,236 warrants were traded at a total price of EUR 102,226.
Major changes in holdings, October - December 2008
On November 24, 2008 Amer Sports Corporation received information to
the effect that the Danske Bank A/S Helsinki Branch's share capital
and voting rights of Amer Sports were still over one-twentieth (1/20)
due to derivative contract transaction agreements which were
completed on November 24, 2008. The Danske Bank A/S Helsinki Branch
completed derivative contract transaction agreements on November 24,
2008 that will, according to their current schemes, mature in
December 2008. If materialized, the ownership of Danske Bank A/S's
Helsinki Branch will fall under one-twentieth (1/20) no earlier than
December 29, 2008. On November 24, 2008, the Danske Bank A/S Helsinki
Branch owned 7,000,000 shares, which represented 9.58% of the
company's share capital and voting rights.
On December 22, 2008 Amer Sports Corporation received information to
the effect that Governance for Owners Llp's share capital and voting
rights of Amer Sports reached one-twentieth (1/20) on December 18,
2008. On that day Governance for Owners owned 3,672,458 shares, which
represented 5.03% of the Amer Sports' share capital and voting
rights.
On December 31, 2008, the company's registered share capital was EUR
292,182,204 and the total number of shares was 73,045,551.
The stock exchange announcements on major changes in shareholdings
during first three quarters of the review period can be found at Amer
Sports web pages, www.amersports.com/investors.
BOARD OF DIRECTORS AND AUDITOR
Amer Sports Annual General Meeting was held on March 5, 2008. On the
same day Novator Finland Oy demanded that an Extraordinary General
Meeting of Amer Sports Corporation to be convened as soon as possible
to elect a new Board of Directors for the company and to replace the
members of the Board of Directors elected.
At the Amer Sports Corporation Extraordinary General Meeting held on
June 4, 2008, the following resolutions were approved: The company's
previous board members were released from their positions and a new
Board of Directors were 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.
At its organizing meeting immediately following the Extraordinary
General Meeting, the Board of Directors unanimously appointed Anssi
Vanjoki as Chairman and Ilkka Brotherus as Vice Chairman. Pirjo
Väliaho (Chairman of the Committee), Anssi Vanjoki, Bruno Sälzer and
Christian Fischer were elected as members of the Compensation
Committee. Ilkka Brotherus (Chairman of the Committee), Anssi Vanjoki
and Felix Björklund were elected as members of the Nomination
Committee. Felix Björklund (Chairman of the Committee), Ilkka
Brotherus and Martin Burkhalter were elected as members of the Audit
Committee.
The Authorized Public Accountant PricewaterhouseCoopers Oy was
elected to act as an auditor of the company. The auditor in charge of
the audit is Mr Jouko Malinen, Authorized Public Accountant. It was
decided that the auditor's fee will be paid as invoiced.
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 at the company's web site at
www.amersports.com/investors.
OUTLOOK FOR 2009
The Amer Sports outlook is clearly more uncertain than normally at
this time of year. The company's results in 2009 are anticipated to
improve thanks to a better cost efficiency in the Winter Sports
Equipment business in particular.
PROPOSED DIVIDEND
Amer Sports seeks to be viewed as a competitive investment that
increases shareholder value through a combination of dividends and
share price performance. The company therefore pursues a progressive
dividend policy reflecting its results, with the objective of
distributing a dividend of at least one-third of annual net profits.
The parent company's unrestricted shareholders' equity amounts to EUR
285,709,814.15, of which net result for the period is EUR
91,602,197.38.
The Board of Directors proposes to the Annual General Meeting that
the distributable earnings be used as follows:
- A dividend of EUR 0.16 per share, totaling EUR 11,687,288.16 to be
paid to shareholders
- EUR 274,022,525.99 to be carried forward in unrestricted
shareholders' equity
Totaling EUR 285,709,814.15
No dividend will be paid to treasury shares held by the company.
There have been no significant changes to the company's financial
position since the close of the financial period. According to the
Board of Directors, the proposed dividend distribution does not
endanger the company's financial standing.
TABLES
The figures presented in this stock exchange release are based on the
Group's audited financial statements, which has been prepared in
accordance with the International Financial Reporting Standards
(IFRS) as adopted by the EU.
CONSOLIDATED RESULTS 1-12/ 1-12/ Change Q4/ Q4/ Change
2008 2007 % 2008 2007 %
NET SALES 1,576.6 1,652.0 -5 495.3 497.1 0
Cost of goods sold -943.6 -987.6 -311.0 -294.9
GROSS PROFIT 633.0 664.4 -5 184.3 202.2 -9
License income 14.3 18.0 4.1 4.9
Other operating income 18.9 7.9 3.2 6.2
R&D expenses -55.6 -57.7 -16.0 -15.8
Selling and marketing
expenses -406.2 -407.6 -112.6 -106.7
Administrative and other
expenses -125.5 -132.8 -27.8 -37.1
Non-recurring expenses
related to the
reorganization of Winter
Sports Equipment business
area - -42.7 - -42.7
EARNINGS BEFORE INTEREST
AND TAXES 78.9 49.5 59 35.2 11.0
% of net sales 5.0 3.0 7.1 2.2
Financing income and
expenses -33.3 -24.9 -11.3 -9.3
EARNINGS BEFORE TAXES 45.6 24.6 85 23.9 1.7
Taxes -11.6 -6.1 -6.2 -0.4
NET RESULT 34.0 18.5 84 17.7 1.3
Attributable to:
Equity holders of the
parent company 33.9 18.1 17.7 1.2
Minority interests 0.1 0.4 0.0 0.1
Earnings per share, EUR 0.47 0.25 0.25 0.02
Earnings per share,
diluted, EUR 0.47 0.25 0.25 0.02
Adjusted average number
of shares in issue less
own shares, million 72.5 72.0
Adjusted average number
of shares in issue less
own shares, diluted,
million 72.5 73.0
Equity per share, EUR 6.95 7.04
ROCE, % *) 7.9 4.8
ROE, % 6.7 3.5
Average rates used:
EUR 1.00 = USD 1.47 1.37
*) 12 months' rolling average
NET SALES BY BUSINESS SEGMENT 1-12/ 1-12/ Change Q4/ Q4/ Change
2008 2007 % 2008 2007 %
Winter and Outdoor 860.8 830.1 4 326.6 304.9 7
Ball Sports 495.5 530.9 -7 110.0 107.0 3
Fitness 220.3 291.0 -24 58.7 85.2 -31
Total 1,576.6 1,652.0 -5 495.3 497.1 0
EBIT BY BUSINESS SEGMENT
1-12/ 1-12/ Change Q4/ Q4/ Change
2008 2007 % 2008 2007 %
Winter and Outdoor 41.1 20.9 97 36.7 35.2 4
Ball Sports 37.0 48.2 -23 3.4 8.0 -58
Fitness 3.8 37.2 -90 -2.3 13.0
Headquarters -3.0 -14.1 79 -2.6 -2.5 -4
78.9 92.2 -14 35.2 53.7 -34
Non-recurring expenses related
to the reorganization of Winter
Sports Equipment business area - -42.7 - -42.7
Total 78.9 49.5 59 35.2 11.0
GEOGRAPHIC BREAKDOWN OF NET SALES
1-12/ 1-12/ Change Q4/ Q4/ Change
2008 2007 % 2008 2007 %
Americas 677.8 774.1 -12 178.8 198.9 -10
EMEA 723.0 704.9 3 249.5 233.9 7
Asia Pacific 175.8 173.0 2 67.0 64.3 4
Total 1,576.6 1,652.0 -5 495.3 497.1 0
CONSOLIDATED CASH FLOW STATEMENT
1-12/2008 1-12/2007
EBIT 78.9 49.5
Depreciation and adjustments to cash flow from
operating activities 20.6 30.5
Change in working capital -42.6 26.3
Cash flow from operating activities before
financing items and taxes 56.9 106.3
Interest paid and received -31.9 -21.7
Income taxes paid -14.5 -26.5
Cash flow from operating activities 10.5 58.1
Acquired operations -2.5 -
Company divestments 3.6 -
Capital expenditure on non-current tangible and
intangible assets -43.1 -58.3
Proceeds from sale of tangible non-current assets 27.4 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 -14.6 -51.6
Dividends paid -36.4 -36.2
Issue of shares - 10.6
Repurchases of own shares - -7.5
Change in net debt and other financial items 42.8 49.9
Cash flow from financing activities 6.4 16.8
Liquid funds at 1 Jan 68.0 45.5
Translation differences 1.8 -0.8
Change in liquid funds 2.3 23.3
Liquid funds at 31 Dec 72.1 68.0
CONSOLIDATED BALANCE SHEET
31 December, 31 December,
2008 2007
Assets
Goodwill 279.3 270.9
Other intangible non-current assets 207.5 209.5
Tangible non-current assets 135.3 135.9
Other non-current assets 65.9 66.3
Inventories and work in progress 346.0 299.2
Receivables 555.8 594.7
Cash and cash equivalents 72.1 68.0
Assets 1,661.9 1,644.5
Shareholders' equity and liabilities
Shareholders' equity 508.1 509.7
Long-term interest-bearing liabilities 179.9 218.6
Other long-term liabilities 22.0 18.7
Current interest-bearing liabilities 507.8 437.6
Other current liabilities 389.0 372.0
Provisions 55.1 87.9
Shareholders' equity and liabilities 1,661.9 1,644.5
Equity ratio, % 30.6 31.0
Gearing, % 121 115
EUR 1.00 = USD 1.39 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 -25.3 -25.3 -25.3
Cash flow
hedges -6.9 -6.9 -6.9
Net income
recognized
directly
in equity -25.3 -6.9 -32.2 -32.2
Net result 18.1 18.1 0.4 18.5
Total
recognized
income and
expense for
the period -25.3 -6.9 18.1 -14.1 0.4 -13.7
Repurchases
of own
shares -7.5 -7.5 -7.5
Dividend
distribution -36.0 -36.0 -0.2 -36.2
Warrants 0.7 0.7 0.7
Warrants
exercised 2.5 8.1 10.6 10.6
Other change
in minority
interest -0.3 -0.3 2.5 8.1 -7.5 -35.3 -32.2 -0.5 -32.7
Balance at
31 Dec 2007 289.3 15.0 -7.5 -66.8 -2.7 278.9 506.2 3.5 509.7
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 4.3 4.3 4.3
Cash flow
hedges -3.5 -3.5 -3.5
Net income
recognized
directly
in equity 4.3 -3.5 0.8 0.8
Net result 33.9 33.9 0.1 34.0
Total
recognized
income and
expense for
the period 4.3 -3.5 33.9 34.7 0.1 34.8
Dividend
distribution -36.3 -36.3 0.0 -36.3
Reissuance
of
own shares 1.8 1.8 1.8
Warrants -0.9 -0.9 -0.9
Warrants
exercised 2.9 -2.9 0.0 0.0
Other change
in minority
interests 0.0 -1.0 -1.0
2.9 -2.9 1.8 0.0 0.0 -37.2 -35.4 -1.0 -36.4
Balance at
31 Dec 2008 292.2 12.1 -5.7 -62.5 -6.2 275.6 505.5 2.6 508.1
CONTINGENT LIABILITIES AND SECURED ASSETS, CONSOLIDATED
31 December, 31 December,
2008 2007
Mortgages pledged 0.0 2.8
Guarantees 8.5 4.5
Liabilities for leasing and rental
agreements 106.6 105.7
Other liabilities 46.1 48.2
There are no guarantees of contingencies given for the management of
the company, the shareholders or the associated companies.
DERIVATIVE FINANCIAL INSTRUMENTS
31 December, 31 December, 2008 2007
Nominal value
Foreign exchange forward contracts 604.3 417.1
Forward rate agreements 0.0 100.0
Interest rate swaps 221.9 217.9
Fair value
Foreign exchange forward contracts -1.1 0.0
Forward rate agreements 0.0 0.0
Interest rate swaps -7.6 -1.6
QUARTERLY BREAKDOWNS OF NET SALES AND EBIT
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
NET SALES 2008 2008 2008 2008 2007 2007 2007 2007
Winter and Outdoor 326.6 267.6 104.6 162.0 304.9 280.6 100.2 144.4
Ball Sports 110.0 110.6 130.9 144.0 107.0 109.9 150.4 163.6
Fitness 58.7 55.0 49.6 57.0 85.2 72.3 59.7 73.8
Total 495.3 433.2 285.1 363.0 497.1 462.8 310.3 381.8
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
EBIT 2008 2008 2008 2008 2007 2007 2007 2007
Winter and Outdoor 36.7 45.7 -26.7 -14.6 35.2 48.9 -28.8 -34.4
Ball Sports 3.4 6.6 11.3 15.7 8.0 5.4 15.0 19.8
Fitness -2.3 2.8 -0.4 3.7 13.0 8.1 6.2 9.9
Headquarters -2.6 -3.6 8.0 -4.8 -2.5 -3.3 -5.2 -3.1
35.2 51.5 -7.8 0.0 53.7 59.1 -12.8 -7.8
Non-recurring
expenses related to
the reorganization of
Winter Sports
Equipment business
area - - - - -42.7 - - -
Total 35.2 51.5 -7.8 0.0 11.0 59.1 -12.8 -7.8
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 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)208 196 1998 and access code 6801881 #. No press conference
will be held at Amer Sports headquarters.
AMER SPORTS 2009 FINANCIAL CALENDAR AND ANNUAL GENERAL MEETING
Amer Sports Annual Report & Accounts 2008 as well as auditors' report
will be published in English and Finnish during the week February 23.
A printed version of the Annual Report can be ordered on the company
website, www.amersports.com, by e-mail from
amer.communications@amersports.com or by telephone +358 9 7257 8308.
The Annual Report can also be downloaded as a pdf file from the
company's website.
The Amer Sports Annual General Meeting will be held on Thursday,
March 5, 2009.
Amer Sports will publish its interim results as follows:
- Q1 on Tuesday, April 28
- Q2 on Thursday, August 6
- Q3 on Thursday, October 29
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
