Weak North American growth hurts Amer's earnings

By Published On: August 6th, 2008Comments Off on Weak North American growth hurts Amer's earnings

Global sports equipment maker Amer Sports Corp. whose winter sports brands include Atomic and Salomon, saw its second-quarter net loss grow to $17.6 million, with revenue falling by 8 percent. The company cautioned that it plans cost cuts.
Global sports equipment maker Amer Sports Corp. whose winter sports brands include Atomic and Salomon, saw its second-quarter net loss grow to $17.6 million, with revenue falling by 8 percent. The company cautioned that it plans cost cuts.
    Hit by a weakening dollar and “unsatisfactory development” in North America, Amer Sports on Wednesday reported net sales of $441 million (€285 million), which is down from €310 million in 2007. The net loss in the period increased from €10.4 million last year.
    Chief Executive Roger Talermo said the Finland-based company was facing “continuing challenging market conditions” with a 14 percent drop in net sales in North America and continued falling demand in the Nordic region’s cross-country ski market.
    “As a consequence of the more difficult macro-economic environment, we believe that our full-year earnings growth will be slower than we anticipated at the start of the year,” Talermo said. “The weak North American economic environment had the biggest impact on our fitness segment.”
    Amer said restructuring of its winter sports section had been concluded and was on target for savings of $31 million by 2009.
    Based in Helsinki, Amer Sports employs 6,300 people — down from 6,600 a year earlier.

    — The Associated Press

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About the Author: Pete Rugh