Head's 2007 revenue dips on sluggish winter sales

Head N.V. saw global net revenues decrease 11.4 percent for the fourth quarter of last year, due mostly to a substantial decline in winter sports sales from the same quarter in 2006.
HEAD N.V. saw global net revenues decrease 11.4 percent for the fourth quarter of last year, due mostly to a substantial decline in winter sports sales from the same quarter in 2006.
    The company saw a 19.3 percent decline in winter sports sales that offset gains in both the racquet and diving divisions for the quarter.
    Winter sports revenues for the three months ending Dec. 31, 2007, decreased 19.3 percent to $102.7 million from $113.4 million in the comparable 2006 period. This decrease was due to significantly lower orders placed for winter sport products.
    For the year ending Dec. 31, 2007, winter sports revenues decreased 25.3 percent to $192.6 million from $236.6 million in 2006. This decrease was due to lower sales volumes of all winter sports products as a consequence of bad snow conditions globally in the 2006-07 winter season.
    “As anticipated, the fourth quarter results have been negatively impacted by the performance of the winter sports division. The poor snow in the 06/07 skiing season has resulted in lower sales and utilization of our facilities,” said Johan Eliasch, chairman and CEO of Netherlands-based company.
    “Whilst the financial performance of the winter sports division has been heavily impacted by the market conditions, the race team has demonstrated the excellent performance of the products with 11 World Cup victories and 36 top-three placements so far this season dominating the speed disciplines.”