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Ô­ÎÄ£ºAmer Sports Q3 Sales Decline on Slow Winter Pre-Season ¡¡¡¡SportsOneSource Media Posted: 10/24/2007 ¡¡¡¡In the July-September third quarter Amer Sports¡® net sales decreased 2% to €462.8 million ($636.1 mm) compared to €471.9 ($604.2 mm) in Q3 sales last year. In local currency terms, net sales were on par with the previous year. Salomon¡¯s sales in local currencies were up 11%, Precor¡®s 28%, and Suunto¡¯s 21%. Wilson¡®s sales declined 4% and Atomic¡¯s 31%. EBIT was €59.1 million ($81.2 mm) compared to €57.9 million ($73.8 mm) last year. ¡¡¡¡Amer Sports fiscal year-to-date net sales decreased 5% to €1,155 billion compared to €1.211 billion. Net sales in local currency terms were flat to last year¡®s corresponding period. EBIT amounted to €38.5 million compared to €50.5 million last year and earnings per share were €0.23 versus €0.33 last year. Sales were down because the mild winter last year reduced winter sports pre-orders more than expected. The full-year result for winter sports equipment will be in the red. As a result, Amer Sports EBIT for the year 2007 will not reach last year¡¯s level. ¡¡¡¡Roger Talermo, President and CEO said, ¡°Amer Sports third-quarter net sales and EBIT developed largely as expected. Particularly good progress was seen in apparel, Salomon footwear, and Precor¡®s operations. Suunto and Mavic also reported continued positive development. Wilson¡¯s sales and earnings in the USA fell slightly short of target due to weaker than expected demand in team sports as well as delays in deliveries caused by the implementation of the Amer Sports global SAP system. Some of Wilson¡®s deliveries were postponed to the fourth quarter. This will not have a significant impact on Wilson¡¯s full-year sales. We still expect Wilson¡®s earnings to improve in the last part of the year. ¡¡¡¡¡°Winter sports deliveries have started off well. Our structural and management reorganization project initiated last summer is progressing. The most significant measures will be taken in the winter sports business. We will report more on these changes as soon as possible,¡± he concluded. ¡¡¡¡Amer Sports net sales in January-September 2007 decreased 5% to €1.155 billion versus €1.211 billion in 2006. Net sales by business segment were as follows: Wilson 37%, Salomon 33%, Precor 18%, Atomic 7%, and Suunto 5%. ¡¡¡¡Wilson¡¯s sales declined 7% and Atomic¡®s 34%. Salomon¡¯s sales were on par with the previous year. Precor¡®s sales increased 7% and Suunto¡¯s 12%. In local currency terms, Salomon¡®s sales were up 2%, Precor¡¯s 14%, and Suunto¡®s 15%. Wilson¡¯s sales declined 2% and Atomic¡®s 33%. ¡¡¡¡The geographical split of net sales is as follows: the Americas (including South and Central America) 50%, EMEA (Europe, Middle East and Africa) 41%, and Asia 9%. Sales decreased 15% in Asia, 5% in the Americas, and 1% in EMEA. In local currency terms, net sales were up 2% in the Americas and down 1% in EMEA and 10% in Asia. ¡¡¡¡The Group¡¯s EBIT was €38.5 million compared to €50.5 million last year. The decrease was caused by the decline in net sales of winter sports equipment and from the slower-than-expected development of Wilson¡®s Team Sports business. ¡¡¡¡Earnings before taxes were €22.9 million compared to €32.2million last year. Earnings per share stood at €0.23 versus €0.33 in the prior year. Net financial expenses totaled €15.6 million compared to €18.3 last year, reduced by interest-rate swaps executed in May, which resulted in a gain of €6.4 million.
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