Finnish sports equipment maker Amer Sports 1Q net loss doubles to euro10.8 million

Amer Sports 1Q loss doubles to euro10.8 million

HELSINKI — Global sports equipment maker Amer Sports Corp., whose brands include Atomic, Salomon and Wilson, reported Tuesday a doubling of net loss to euro10.8 million ($14.2 million) and cautioned that the remainder of the year was “clouded by uncertainty.”

Poor consumer demand and cautious retailers continued to hit company revenue in January through March which fell 2 percent to euro355 million ($466 million), from euro363 million a year earlier, Amer Sports said. It posted a net loss of euro5.2 million in the same period in 2008.

The company’s share price closed down 3.7 percent at euro6.48 ($8.42) in Helsinki.

“The sporting goods business entered 2009 under the same cloud of uncertainty that is oppressing almost all consumer businesses. As a result, retailers have become extremely cautious about ordering new products and they have been de-stocking,” Chief Executive Roger Talermo said.

Talermo said the uncertainty made the outlook for 2009 “clearly less predictable” than normal. “Our key priority in 2009 is strengthening the balance sheet and further gain efficiencies,” he said.

Earlier, Amer Sports had predicted that 2009 would see an improvement in the company’s performance.

Winter and outdoor equipment remained the No.1 earner for the company, accounting for 46 percent of net sales, followed by ball sports at 40 percent and fitness equipment at 14 percent.

Sales in its largest market, North America, fell by 5 percentage points in the quarter compared to 2008 but it retained the top spot with 46 percent of the total. Sales in Europe and the Middle East fell 1 percentage point for a 44 percent share and grew 9 points in Asia Pacific for 10 percent share.

“Visibility will improve during Q2 when the pre-orders in winter sports equipment are collected,” the company said. “Due to the prevailing uncertainty, Amer Sports has decided to give further guidance after the pre-order season in winter sports equipment is over.”

Formerly Finland’s largest cigarette maker, Amer sold its tobacco operations in 2004 to focus on fitness and sports equipment. It has divested noncore assets and bought several sports equipment makers, including California-based Fitness Products International and Sparks, Nevada-based ATEC, a leading maker of baseball and softball pitching machines.

Based in Helsinki, Amer Sports employs 6,300 people — down from 6,350 a year earlier.

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On the Net:

Amer: www.amersports.com