Amer Sports Corporation Reports Interim Results for Q1 From January - March 2014

Amer Sports Corporation reports interim results for first quarter from January - March 2014.

January-March 2014
The net sales were EUR 501.5 million (493.0) and also a solid, broad-based growth of 6% in local currencies, despite challenging trading conditions in Russia and bad weather conditions in main markets was recorded. Gross margin was 44.3% (44.2%) and EBIT was EUR 20.6 million (26.4), heavily impacted by currencies. Earnings per share were EUR 0.07 (0.13) and Net cash flow after investing activities were EUR 44.2 million (67.9). Gearing was 58% (March 31, 2013: 56%) and outlook for 2014 remain unchanged.

Outlook For 2014
Amer Sports expects global trading conditions to remain challenging, with some regional improvements. In 2014, Amer Sports' net sales growth in local currencies is expected to meet at minimum the company's long-term annual 5% growth target, and EBIT excluding non-recurring items is expected to improve from 2013. The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence.

Heikki Takala, President and Ceo commented, “We delivered a good start for the year with a solid 6% growth and slightly improved gross margin, driven by broad-based double-digit growth in several of our strategic growth areas. During the quarter we also faced quite some challenges, including a mild winter which impacted adversely especially cross-country skiing, however the Winter Sports Equipment business showed remarkable resilience and even good growth in parts of the portfolio.

“In tennis we declined as intended, largely due to cleaning up some unprofitable sales with the objective to ignite more profitable growth in Wilson. In Russia, we faced challenges due to declining consumer demand and devaluation of the currency which caused a decline in our EBIT.

“The trading conditions have been more unfavorable than expected; nevertheless I'm pleased with the progress in our own actions. Our long-term strategies are working and we continue to execute with appropriate agility, looking forward to another year of growth and improvement.”