K2 Inc announces quarterly earnings and establishes a European management team

K2 Inc announces quarterly earnings and establishes a European management team{mosimage}Sporting goods company K2 Inc., on Wednesday said its second-quarter profit fell, weighed down by expenses from acquired businesses that are seasonally slow in the period.

The Carlsbad, California-based company said net income in the quarter totaled $6.2 million, or 16 cents per share, compared with $5.8 million, or 19 cents in the year-ago period.

Second-quarter sales rose 26 percent to $251 million, as stronger sales of products such as fishing equipment, skis and snowboards offset slackening demand for in-line skates.

K2 aquired Marker, Völkl and Marmot in a surprise buying spree last month. Click here to read that story.

Looking ahead, K2 said it affirmed its outlook for fiscal 2004 for diluted earnings per share of 86 cents, based on sales of about $1.15 billion. For the third quarter, it expects diluted earnings of about 25 cents per share, on sales of about $320 million.

Earlier in the week, the company announced announced the establishment of its European management team. John J. Rangel, a 20-year veteran of K2 Inc. and most recently Senior Vice President and Chief Financial Officer, has been appointed President of K2 Inc.’s European operations, responsible for integration of all current and future operations in the region, and will relocate to Europe.

Christoph Bronder, the President of the Volkl Group since 1996 and the managing partner of Marker International, has been named President of Volkl and Marker’s worldwide operations.

Mike Noonan has been named President of Volkl Sport America. Dudley Mendenhall, Senior Vice President – Finance, will assume the additional finance duties of the K2 Inc. Chief Financial Officer.

Richard J. Heckmann, Chairman and Chief Executive Officer, said, “The key to combining Volkl and Marker into K2’s worldwide operations is truly integrating management. John Rangel’s years of experience with K2’s winter sports divisions, together with Christoph Bronder and his very experienced Volkl and Marker European teams, will insure a rapid process.

The addition of Mike Noonan, a highly regarded ski industry executive, to the U.S. team also insures a smooth transition domestically. Further, the new structure will ease the integration of the European financial and reporting operations with those in the U.S.”

–from press releases and wire services