2011-10-27 12:00:00 CEST
2011-10-27 12:00:57 CEST
REGULATED INFORMATION
Amer Sports - Interim report (Q1 and Q3)
Amer Sports Interim Report January-September 2011: Strong quarter further supported by earlier deliveries, full-year guidance unchanged
Amer Sports Corporation
INTERIM REPORT
October 27, 2011 at 1:00 pm
Amer Sports Corporation Interim Report January-September 2011
Strong quarter further supported by earlier deliveries, full-year guidance
unchanged
JULY-SEPTEMBER 2011
* Net sales totaled EUR 559.2 million (July-September 2010: EUR 466.9
million). In local currencies, comparable net sales increased by 17%
supported by earlier deliveries in Winter Sports Equipment and Apparel.
* EBIT was EUR 74.4 million (59.3, excluding non-recurring items).
* Earnings per share were EUR 0.45 (0.38).
* Net cash flow after investing activities was EUR -90.4 million (-91.5).
JANUARY-SEPTEMBER 2011
* Net sales were EUR 1,323.9 million (January-September 2010: EUR 1,157.0
million). In local currencies, comparable net sales increased by 12%.
* EBIT was EUR 89.2 million (51.9, excluding non-recurring items).
* Earnings per share were EUR 0.46 (0.22).
* Net cash flow after investing activities was EUR -70.4 million (-7.6)
reflecting higher working capital driven by growth.
* Gearing was 55% (45%).
OUTLOOK AND GUIDANCE 2011
In 2011, Amer Sports expects its full-year net sales in local currencies to grow
by approximately 9% and EBIT margin excluding non-recurring items to improve by
approximately one percentage point from 2010.
The company will continue to invest into executing its long-term strategy and
sustaining profitable growth. In Winter Sports Equipment, the solid improvement
in pre-orders together with operational efficiency measures is expected to have
a positive impact on the full-year profitability. Deliveries of pre-orders
started 3-4 weeks earlier than in 2010 which impacted the third quarter
positively but there is no change in the full-year outlook. In Apparel and
Footwear, the deliveries peaked in the third quarter and the full-year outlook
remains unchanged.
7-9/ 7-9/ Ch Ch 1-9/ 1-9/ Ch Ch
EUR million 2011 2010 % %*) 2011 2010 % %*) 2010
---------------------------------------------------------------------------
Net sales 559.2 466.9 20 17 1,323.9 1,157.0 14 12 1,740.4
Gross profit 253.4 209.3 21 581.5 504.2 15 742.0
Gross profit % 45.3 44.8 43.9 43.6 42.6
EBIT excluding non-
recurring items 74.4 59.3 25 89.2 51.9 72 107.9
EBIT % excluding non-
recurring items 13.3 12.7 6.7 4.5 6.2
Non-recurring items**) - -3.5 - -3.5 -11.1
EBIT total 74.4 55.8 33 89.2 48.4 84 96.8
EBIT % 13.3 12.0 6.7 4.2 5.6
Financing income and
expenses -5.3 -2.2 -14.4 -15.6 -21.3
Earnings before taxes 69.1 53.6 74.8 32.8 75.5
Net result 55.3 47.4 59.8 30.8 68.9
Earnings per share, EUR 0.45 0.38 0.46 0.22 0.52
Net cash flow after
investing activities -90.4 -91.5 -70.4 -7.6 50.1
Equity ratio, % at
period end 44.0 47.5 47.8
Gearing, % at period end 55 45 37
Personnel at period end 7,107 6,640 6,645
Average rates used,
EUR/USD 1.41 1.32 1.33
*) Comparable sales in local currencies
**) Non-recurring items are exceptional transactions that are not related to
normal business operations. The most common non-recurring items are capital
gains, exceptional write-downs, provisions for planned restructuring and
penalties. Non-recurring items are normally specified individually if they have
material impact on EBIT.
HEIKKI TAKALA, PRESIDENT AND CEO:"The third quarter was strong with good growth in Winter Sports Equipment,
Footwear, Apparel, Cycling, Team Sports and Fitness. The growth was further
boosted by earlier deliveries compared to 2010 in Winter Sports Equipment and
Apparel, and our full-year guidance remains unchanged. Racquet Sports was still
adversely impacted by the overall soft tennis market.
I'm especially pleased with the progress in our strategy to grow faster in
footwear and apparel. The growth which was accelerated in 2010 continued, and in
the first nine months of 2011, softgoods grew by 32%.
We stay on the path set last year as our strategy is working. We continue
executing the strategic programs guided by our financial targets, with strong
focus on synergies, internal improvement and organic growth."
For further information, please contact:
Heikki Takala, President and CEO, tel. +358 9 7257 8210
Jussi Siitonen, CFO, tel. +358 9 7257 8212
Päivi Antola, Director, Corporate Communications and Investor Relations,
tel. +358 9 7257 8233
TELEPHONE CONFERENCE
An English-language telephone conference call for investors and analysts will be
held today, October 27, 2011 at 3:00 pm Finnish time. To participate in the
conference call, please call +44 (0)20 3450 9987 (UK/international dial-in
number), confirmation code 2563734. The conference can also be followed on a
direct transmission on the internet, at www.amersports.com. A recorded version
and transcript will be available later at the same address. The replay number is
+44 (0)20 7111 1244, and the access code 2563734#.
FOURTH QUARTER INTERIM REPORT
Amer Sports will publish its fourth quarter interim report on Thursday, February
2, 2012 at approximately 1:00 pm Finnish time.
INTERIM REPORT
NET SALES AND EBIT JULY-SEPTEMBER 2011
Amer Sports' net sales in July-September 2011 totaled EUR 559.2 million (July-
September 2010: EUR 466.9 million). Comparable net sales increased by 17% in
local currencies. The growth was particularly strong in Winter Sports Equipment
(24%), Footwear (36%) and Apparel (30%) due to stronger pre-orders compared to
2010 and earlier deliveries in Winter Sports Equipment and Apparel. Comparable
net sales increased in EMEA by 22%, the Americas 12% and Asia Pacific by 13%.
Net sales by business segment
7-9/ 7-9/ Change Change % of sales % of sales
EUR million 2011 2010 % %*) 7-9/2011 7-9/2010 2010
--------------------------------------------------------------------------
Winter and Outdoor 395.7 300.3 32 24 71 64 1,015.0
Ball Sports 106.7 114.0 -6 0 19 25 520.6
Fitness 56.8 52.6 8 10 10 11 204.8
--------------------------------------------------------------------------
Total 559.2 466.9 20 17 100 100 1,740.4
--------------------------------------------------------------------------
*) Comparable sales in local currencies
Geographic breakdown of net sales
7-9/ 7-9/ Change Change % of sales % of sales
EUR million 2011 2010 % %*) 7-9/2011 7-9/2010 2010
--------------------------------------------------------------------
Americas 203.8 192.3 6 12 36 41 687.9
EMEA 300.0 226.9 32 22 54 49 845.7
Asia Pacific 55.4 47.7 16 13 10 10 206.8
--------------------------------------------------------------------
Total 559.2 466.9 20 17 100 100 1,740.4
--------------------------------------------------------------------
*) Comparable sales in local currencies
Group EBIT was EUR 74.4 million (59.3, excluding non-recurring items). In local
currencies, increased sales volumes contributed EUR 47.6 million to EBIT growth,
and higher gross margins by EUR 2.0 million. Operating expenses increased by EUR
24.0 million driven by increased sales and distribution costs.
EBIT by business segment
7-9/ 7-9/ Change
EUR million 2011 2010 % 2010
---------------------------------------------------------
Winter and Outdoor 79.3 58.2 36 96.9
Ball Sports -1.1 3.5 32.2
Fitness 2.8 2.8 0 2.7
Headquarters -6.6 -5.2 -23.9
---------------------------------------------------------
EBIT excluding non-recurring items 74.4 59.3 25 107.9
---------------------------------------------------------
Non-recurring items - -3.5 -11.1
---------------------------------------------------------
EBIT total 74.4 55.8 33 96.8
---------------------------------------------------------
Net financial expenses totaled EUR 5.3 million (2.2) including net interest
expenses of EUR 4.6 million (5.6). Net foreign exchange loss totaled EUR 0.6
million (3.4 gain). Earnings before taxes totaled EUR 69.1 million (53.6) and
taxes were EUR -13.8 million (-6.2). Earnings per share were EUR 0.45 (0.38).
NET SALES AND EBIT JANUARY-SEPTEMBER 2011
Amer Sports' net sales in January-September 2011 were EUR 1,323.9 million
(January-September 2010: EUR 1,157.0 million). Comparable net sales increased by
12% in local currencies, particularly due to sales growth in Winter Sports
Equipment (19%), Footwear (34%) and Apparel (29%). Comparable net sales
increased in EMEA by 17%, the Americas by 10% and Asia Pacific by 3%.
Net sales by business segment 1-9/ 1-9/ Change Change % of sales % of sales
EUR million 2011 2010 % %*) 1-9/2011 1-9/2010 2010
------------------------------------------------------------------------------
Winter and Outdoor 762.6 598.5 27 21 58 52 1,015.0
Ball Sports 402.0 413.3 -3 -1 30 36 520.6
Fitness 159.3 145.2 10 12 12 12 204.8
------------------------------------------------------------------------------
Total 1,323.9 1,157.0 14 12 100 100 1,740.4
------------------------------------------------------------------------------
*) Comparable sales in local currencies
Geographic breakdown of net sales
1-9/ 1-9/ Change Change % of sales % of sales
EUR million 2011 2010 % %*) 1-9/2011 1-9/2010 2010
------------------------------------------------------------------------
Americas 536.7 503.8 7 10 40 44 687.9
EMEA 643.8 519.9 24 17 49 45 845.7
Asia Pacific 143.4 133.3 8 3 11 11 206.8
------------------------------------------------------------------------
Total 1,323.9 1,157.0 14 12 100 100 1,740.4
------------------------------------------------------------------------
*) Comparable sales in local currencies
Group EBIT was EUR 89.2 million (51.9, excluding non-recurring items). In local
currencies, increased sales volumes contributed EUR 82.0 million to EBIT growth,
while higher gross margins contributed EUR 3.6 million. Operating expenses
increased by EUR 36.3 million, driven by increased sales and distribution costs.
EBIT by business segment
1-9/ 1-9/ Change
EUR million 2011 2010 % 2010
-----------------------------------------------------------
Winter and Outdoor 73.5 35.7 96.9
Ball Sports 25.7 34.9 -26 32.2
Fitness 5.8 -1.6 2.7
Headquarters -15.8 -17.1 -23.9
-----------------------------------------------------------
EBIT excluding non-recurring items 89.2 51.9 107.9
-----------------------------------------------------------
Non-recurring items - -3.5 -11.1
-----------------------------------------------------------
EBIT total 89.2 48.4 84 96.8
-----------------------------------------------------------
Net financial expenses totaled EUR 14.4 million (15.6) including net interest
expenses of EUR 13.8 million (12.7). Net foreign exchange losses totaled EUR
0.5 million (2.9 losses). Earnings before taxes totaled EUR 74.8 million (32.8)
and taxes totaled EUR -15.0 million (-2.0). Earnings per share were EUR 0.46
(0.22).
CASH FLOW AND FINANCING
Net cash flow after investing activities (free cash flow) in January-September
was EUR -70.4 million (-7.6). The lower cash flow is mainly a result of
increased receivables of EUR 51.9 million (January-September 2010: decrease of
EUR 29.9 million) due to earlier deliveries especially in Winter Sports
Equipment and higher growth in Footwear and Apparel. Inventories increased by
EUR 86.2 million (January-September 2010: increase of EUR 108.6 million).
Net cash flow from investing activities was EUR -23.1 million (-16.8). In March
the company paid dividend of EUR 36.4 million (19.5) and hybrid interest of EUR
7.2 million (7.2) and purchased own shares by EUR 9.2 million (0). In August-
September the company purchased own shares by EUR 20.7 million (0).
At the end of September, the Group's net debt amounted to EUR 429.1 million
(September 30, 2010: 341.5) due to increased working capital.
Interest-bearing liabilities amounted to EUR 504.7 million (September
30, 2010: 391.7) and consisted of short-term debt of EUR 174.7 million and long-
term debt of EUR 330.0 million. The average interest rate on the Group's
interest-bearing liabilities was 3.7% (4.5%).
Short-term debt includes repayments of long-term loans totaling EUR 21.8 million
(September 30, 2010: 120.7). Amer Sports has a commercial paper program of EUR
500 million. At the end of the review period, Amer Sports had issued EUR 150.2
million commercial papers in the Finnish markets.
Cash and cash equivalents totaled EUR 75.6 million (September 30, 2010: 50.2).
The loan syndicate signed in 2005 consists of a revolving credit facility and a
term loan of USD 100 million. In June 2011, Amer Sports cut the original EUR
325 million revolving credit facility down to EUR 225 million. Amer Sports had
not used any of the revolving credit facility at the end of the review period.
In April, Amer Sports issued a SEK 500 million floating rate bond with a loan
period of five years targeted at Nordic institutional investors. The bond is
listed on the NASDAQ OMX Helsinki Ltd stock exchange.
The equity ratio at the end of September was 44.0% (September 30, 2010: 47.5%)
and gearing was 55% (September 30, 2010: 45%).
CAPITAL EXPENDITURE
Capital expenditure totaled EUR 28.9 million (18.7). Depreciation totaled EUR
26.0 million (26.5). The full-year capital expenditure is expected to be
approximately EUR 50 million (39.9). The increase is mainly due to investments
in the operational efficiency program in Winter Sports Equipment.
BUSINESS SEGMENT REVIEWS
WINTER AND OUTDOOR
7-9/ 7-9/ Ch Ch 1-9/ 1-9/ Ch Ch
EUR million 2011 2010 % %*) 2011 2010 % %*) 2010
----------------------------------------------------------------------
Net sales
Winter Sports
Equipment 185.4 133.1 39 24 243.4 185.6 31 19 438.4
Footwear 90.7 67.0 35 36 236.7 172.3 37 34 219.6
Apparel 69.5 50.3 38 30 125.8 93.6 34 29 156.6
Cycling 28.7 25.2 14 15 91.0 79.6 14 12 106.4
Sports Instruments 21.4 24.7 -13 -10 65.7 67.4 -3 -3 94.0
Net sales, total 395.7 300.3 32 24 762.6 598.5 27 21 1,015.0
EBIT excluding
non-recurring items 79.3 58.2 36 73.5 35.7 96.9
EBIT % excluding
non-recurring items 20.0 19.4 9.6 6.0 9.5
Non-recurring items - - - - -10.0
EBIT total 79.3 58.2 36 73.5 35.7 86.9
Personnel, period end 4,663 4,310 4,293
*) Comparable sales in local currencies
In July-September, Winter and Outdoor's net sales totaled EUR 395.7 million
(300.3), representing an increase of 24% in local currencies. Net sales growth
was driven by Winter Sports Equipment, Footwear and Apparel.
7-9/ 7-9/ Ch Ch 1-9/ 1-9/ Ch Ch
EUR million 2011 2010 % %*) 2011 2010 % %*) 2010
------------------------------------------------------------
Americas 101.6 84.7 20 22 175.5 141.1 24 25 211.3
EMEA 260.2 189.7 37 25 509.4 392.7 30 22 687.2
Asia Pacific 33.9 25.9 31 23 77.7 64.7 20 13 116.5
------------------------------------------------------------
Total 395.7 300.3 32 24 762.6 598.5 27 21 1,015.0
------------------------------------------------------------
*) Comparable sales in local currencies
In July-September, EBIT was EUR 79.3 million (58.2) driven by increased sales
volumes.
Winter Sports Equipment
In July-September, Winter Sports Equipment net sales totaled EUR 185.4 million
(133.1), representing an increase of 24% in local currencies due to earlier
deliveries and higher pre-orders compared to 2010.
Footwear
In July-September, Footwear net sales totaled EUR 90.7 million (67.0),
representing an increase of 36% in local currencies.
Apparel
In July-September, Apparel net sales totaled EUR 69.5 million (50.3),
representing an increase of 30% in local currencies.
Cycling
In July-September, Cycling net sales totaled EUR 28.7 million (25.2), an
increase of 15% in local currencies. The strongest growth was in wheels and
cycling shoes.
Sports Instruments
In July-September, Sports Instruments net sales totaled EUR 21.4 million (24.7).
Underlying sales excluding the divested businesses was at last year's level.
Sales of outdoor instruments grew by 9%.
BALL SPORTS
7-9/ 7-9/ Ch Ch 1-9/ 1-9/ Ch Ch
EUR million 2011 2010 % %*) 2011 2010 % %*) 2010
---------------------------------------------------------------------
Net sales
Racquet Sports 47.1 53.3 -12 -9 172.7 188.5 -8 -8 232.5
Team Sports 45.1 44.6 1 12 170.9 161.1 6 10 212.1
Golf 14.5 16.1 -10 -4 58.4 63.7 -8 -7 76.0
Net sales, total 106.7 114.0 -6 0 402.0 413.3 -3 -1 520.6
EBIT excluding
non-recurring items -1.1 3.5 25.7 34.9 -26 32.2
EBIT % excluding
non-recurring items 3.1 6.4 8.4 6.2
Non-recurring items - - - - -2.7
EBIT total -1.1 3.5 25.7 34.9 -26 29.5
Personnel, period end 1,620 1,592 1,590
*) Comparable sales in local currencies
In July-September, Ball Sports' net sales totaled EUR 106.7 million (114.0) and
was at last year's level in local currencies. Racquet Sports decline of 9% was
mainly driven by the soft tennis market. Team Sports continued its good
performance and net sales in local currencies increased by 12%.
7-9/ 7-9/ Ch Ch 1-9/ 1-9/ Ch Ch
EUR million 2011 2010 % %*) 2011 2010 % %*) 2010
------------------------------------------------------------
Americas 67.7 72.3 -6 4 255.9 262.1 -2 2 334.4
EMEA 23.9 24.4 -2 -5 96.2 95.5 1 -2 114.0
Asia Pacific 15.1 17.3 -13 -10 49.9 55.7 -10 -12 72.2
------------------------------------------------------------
Total 106.7 114.0 -6 0 402.0 413.3 -3 -1 520.6
------------------------------------------------------------
*) Comparable sales in local currencies
EBIT was EUR -1.1 million in July-September (3.5). The decline was due to lower
sales volumes, impact EUR -0.4 million, and lower gross margins, impact EUR -1.7
million. The gross margins were negatively impacted by the unfavorable
development in Racquet Sports.
Racquet Sports
In July-September, Racquet Sports net sales totaled EUR 47.1 million (53.3),
representing a decrease of 9% in local currencies. Racquet Sports was adversely
impacted by the continuously soft tennis market.
Team Sports
In July-September, Team Sports net sales totaled EUR 45.1 million (44.6), an
increase of 12% in local currencies. The growth in Team Sports was driven by
bats and American footballs.
Golf
In July-September, Golf net sales totaled EUR 14.5 million (16.1), a decrease of
4% in local currencies. The golf market conditions remained challenging in the
Americas as a result of declining rounds played.
FITNESS
7-9/ 7-9/ Ch Ch 1-9/ 1-9/ Ch Ch
EUR million 2011 2010 % %*) 2011 2010 % %*) 2010
-----------------------------------------------------------------
Net sales 56.8 52.6 8 10 159.3 145.2 10 12 204.8
EBIT excluding
non-recurring items 2.8 2.8 0 5.8 -1.6 2.7
EBIT % excluding
non-recurring items 4.9 5.3 3.6 1.3
Non-recurring items - - - - -2.3
EBIT total 2.8 2.8 0 5.8 -1.6 0.4
Personnel, period end 750 666 691
*) Comparable sales in local currencies
In July-September, Fitness' net sales totaled EUR 56.8 million (52.6), an
increase of 10% in local currencies. In local currencies, the Americas was at
last year's level, EMEA increased by 24% and Asia Pacific by 36%.
7-9/ 7-9/ Ch Ch 1-9/ 1-9/ Ch Ch
EUR million 2011 2010 % %*) 2011 2010 % %*) 2010
--------------------------------------------------------
Americas 34.5 35.3 -2 1 105.3 100.6 5 8 142.2
EMEA 15.9 12.8 24 24 38.2 31.7 21 19 44.5
Asia Pacific 6.4 4.5 42 36 15.8 12.9 22 22 18.1
--------------------------------------------------------
Total 56.8 52.6 8 10 159.3 145.2 10 12 204.8
--------------------------------------------------------
*) Comparable sales in local currencies
The commercial business (clubs and institutions) sales were up by 12% in July-
September. The North American commercial fitness market has continued to improve
in 2011 while the soft economy has continued to plague the consumer business.
Fitness' EBIT was EUR 2.8 million (2.8) in July-September. In local currencies,
increased sales volumes contributed EUR 3.2 million to EBIT growth while higher
gross margins contributed EUR 0.4 million. Operating expenses increased by EUR
3.6 million mainly due to sales and distribution costs.
PERSONNEL
At the end of September 2011, Group employees totaled 7,107 (December
31, 2010: 6,645). The number of employees increased due to strengthening the
sales and distribution and increased production in Winter Sports Equipment.
September 30, September 30, Change Dec 31,
2011 2010 % 2010
--------------------------------------------------------------
Winter and Outdoor 4,663 4,310 8 4,293
Ball Sports 1,620 1,592 2 1,590
Fitness 750 666 13 691
Headquarters 74 72 3 71
--------------------------------------------------------------
Total 7,107 6,640 7 6,645
--------------------------------------------------------------
September 30, September 30, Change Dec 31,
2011 2010 % 2010
--------------------------------------------------------
EMEA 4,258 3,936 8 3,903
Americas 2,289 2,188 5 2,214
Asia Pacific 560 516 9 528
--------------------------------------------------------
Total 7,107 6,640 7 6,645
--------------------------------------------------------
SHARES AND SHAREHOLDERS
The company's share capital totaled EUR 292,182,204 on September 30, 2011 and
the number of shares was 121,517,285.
Authorizations
The Annual General Meeting held on March 10, 2011 authorized the Board of
Directors to decide on the repurchase of a maximum of 10,000,000 of the
company's own shares ("Repurchase Authorization"). The company's own shares
shall be repurchased otherwise than in proportion to the holdings of the
shareholders by using the non-restricted equity through public trading on the
NASDAQ OMX Helsinki at the market price prevailing at the time of acquisition.
The shares shall be repurchased and paid for in accordance with the rules of the
NASDAQ OMX Helsinki and Euroclear Finland Ltd. The Repurchase Authorization is
valid 18 months from the decision of the Annual General Meeting.
The Annual General Meeting held on March 10, 2010 authorized the Board of
Directors to decide on the repurchase of a maximum of 7,000,000 of the company's
own shares. The repurchase authorization is valid for 18 months from the date of
the decision by the Annual General Meeting.
In the Annual General meeting in 2010, the Board of Directors was also
authorized to decide on issuing new shares and/or conveying the company's own
shares held by the company as follows: the Board of Directors is entitled to
decide on issuing a maximum of 7,000,000 new shares or on conveying a maximum of
7,000,000 of the company's own shares held by the company. The Board of
Directors decides on all the conditions of the issuance of shares. The issuance
of shares may be carried out in deviation from the shareholders' pre-emptive
rights (directed issue). The authorization includes the possibility to issue own
shares to the company for free. The authorization to issue shares and to convey
the company's own shares is valid for two (2) years from the date of the
decision of the Annual General Meeting.
Apart from the above, the Board of Directors has no current authorization to
issue shares, convertible bonds or warrant programs.
Trading in shares
In January-September, a total of 57.4 million (40.5) Amer Sports shares with a
value totaling EUR 570.7 million (335.0) were traded on the NASDAQ OMX Helsinki
Ltd stock exchange. The average daily trading volume in January-September 2011
was 301,976 shares (214,516).
The closing price of the Amer Sports Corporation share on the NASDAQ OMX
Helsinki Ltd stock exchange on September 30, 2011 was EUR 9.49 (9.03). The Amer
Sports Corporation shares registered a high of EUR 11.97 (9.24) and a low of EUR
7.52 (6.82) during the review period. The average share price was EUR 9.95
(8.26). On September 30, 2011, excluding own shares, the company had a market
capitalization of EUR 1,122.0 million (1,094.2).
Amer Sports Corporation had 15,911 registered shareholders (14,157) at the end
of September, 2011. Outside Finland, ownership and nominee registrations
represented 49.3% (51.6%) of the company's shares.
Own shares
Based on the authorization given by the AGM on March 10, 2010, the Amer Sports
Board of Directors decided on February 15, 2011 to initiate a share repurchase
program in order to implement a share-based incentive plan for 2011 and 2012 for
the Group's key personnel. Repurchases on the NASDAQ OMX Helsinki Ltd stock
exchange began on February 23, 2011 and ended on March 24, 2011. One (1) million
shares were acquired during this period.
Purchase price Purchase price
Total value, (average), (high and low),
Time Amount EUR EUR EUR
----------------------------------------------------------------------------
Feb. 23-March 24, 2011 1,000,000 9,212,051.46 9.21 9.81 and 8.43
On March 15, 2011, a total of 330,838 Amer Sports shares were transferred to the
personnel involved in the company's Performance Share Plan 2010 and the
Restricted Stock Plan 2010. The shares were transferred from the shares owned by
Amer Sports International Oy.
Amer Sports Board of Directors decided on August 15, 2011 to utilize the
authorization given by the Annual General Meeting held on March 10, 2011 to
repurchase Amer Sports shares. The repurchases started on August 23, 2011 and
will end on June 30, 2012 at the latest. The amount to be acquired is a maximum
of three (3) million shares. At the end of the review period, the company had
acquired 2,275,000 Amer Sports shares as follows:
Purchase price Purchase price
Total value, (average), (high and low),
Time Amount EUR EUR EUR
----------------------------------------------------------------------------
Aug. 23-Sep. 30, 2011 2,275,000 20,643,234.82 9.07 9.97 and 8.14
On September 30, 2011, Amer Sports International Oy held a total of 12,125 Amer
Sports Corporation shares, while Amer Sports Corporation held a total of
3,275,000 Amer Sports Corporation shares. The number of own shares held
corresponds to 2.71% of all Amer Sports Corporation shares.
DECISIONS BY THE AMER SPORTS CORPORATION ANNUAL GENERAL MEETING
Documentation and press releases relating to the resolutions approved by the
Amer Sports Corporation Annual General Meeting held on March 10, 2011 are
available on the company's website at www.amersports.com/investors.
SIGNIFICANT RISKS AND UNCERTAINTIES
Amer Sports' business is balanced by its broad portfolio of sports and brands as
well as its presence in all major markets. Short-term risks for Amer Sports are
particularly associated with the development of consumer demand in North
America, Europe and Japan, with labor and raw material price inflation,
especially in China and with Amer Sports' ability to manufacture, source and
deliver products on a timely basis.
Further information on the company's business risks and uncertainty factors is
available on the company's web site at www.amersports.com/investors.
OUTLOOK FOR 2011
In 2011, Amer Sports expects its full-year net sales in local currencies to grow
by approximately 9% and EBIT margin excluding non-recurring items to improve by
approximately one percentage point from 2010.
The company will continue to invest into executing its long-term strategy and
sustaining profitable growth. In Winter Sports Equipment, the solid improvement
in pre-orders together with operational efficiency measures is expected to have
a positive impact on the full-year profitability. Deliveries of pre-orders
started 3-4 weeks earlier than in 2010 which impacted the third quarter
positively but there is no change in the full-year outlook. In Apparel and
Footwear, the deliveries peaked in the third quarter and the full-year outlook
remains unchanged.
Outlook given in the Interim Report January-June 2011 on August 4
Amer Sports' strategic development programs continue to contribute positively to
the Group performance in 2011 and the company will continue to invest into
executing the new strategy and sustaining profitable growth. In Footwear and
Apparel, fall/winter pre-orders are indicating that the strong momentum will
continue. In Winter Sports Equipment, solid improvement in pre-orders together
with operational efficiency measures is expected to have a positive impact on
the full-year profitability.
In 2011, Amer Sports expects its full-year net sales in local currencies to grow
at a similar rate as in the first half of the year and EBIT margin excluding
non-recurring items to improve by approximately one percentage point from 2010.
TABLES
The notes are an integral part of consolidated interim financial information.
Unaudited
EUR million
CONSOLIDATED RESULTS
7-9/ 7-9/ Change 1-9/ 1-9/ Change
2011 2010 % 2011 2010 % 2010
--------------------------------------------------------------------------------
NET SALES 559.2 466.9 20 1,323.9 1,157.0 14 1,740.4
Cost of goods sold -305.8 -257.6 -742.4 -652.8 -998.4
--------------------------------------------------------------------------------
GROSS PROFIT 253.4 209.3 21 581.5 504.2 15 742.0
License income 2.0 2.4 6.4 6.8 9.5
Other operating income 1.4 0.4 2.8 2.6 12.4
R&D expenses -14.4 -12.5 -43.6 -40.7 -57.4
Selling and marketing
expenses -117.5 -104.3 -337.6 -311.6 -443.1
Administrative and other
expenses -50.5 -39.5 -120.3 -112.9 -166.6
--------------------------------------------------------------------------------
EARNINGS BEFORE
INTEREST AND TAXES 74.4 55.8 33 89.2 48.4 84 96.8
% of net sales 13.3 12.0 6.7 4.2 5.6
Financing income and
expenses -5.3 -2.2 -14.4 -15.6 -21.3
--------------------------------------------------------------------------------
EARNINGS BEFORE TAXES 69.1 53.6 74.8 32.8 75.5
Taxes -13.8 -6.2 -15.0 -2.0 -6.6
--------------------------------------------------------------------------------
NET RESULT 55.3 47.4 59.8 30.8 68.9
--------------------------------------------------------------------------------
Attributable to:
Equity holders of the parent
company 55.2 47.3 59.7 30.7 68.8
Non-controlling interests 0.1 0.1 0.1 0.1 0.1
Earnings per share, EUR 0.45 0.38 0.46 0.22 0.52
Earnings per share, diluted,
EUR 0.45 0.38 0.46 0.22 0.52
Adjusted average number of
shares in issue less own
shares, million 120.5 121.2 121.2
Adjusted average number of
shares in issue less own
shares,
diluted, million 120.9 121.2 121.2
Equity per share, EUR 6.64 6.23 6.50
ROCE, % *) 13.7 9.1 10.0
ROE, % 10.1 5.5 9.0
Average rates used:
EUR 1.00 = USD 1.4144 1.2839 1.4068 1.3173 1.3289
*) 12 months' rolling average
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
7-9/ 7-9/ 1-9/ 1-9/
2011 2010 2011 2010 2010
----------------------------------------------------------------------
Net result 55.3 47.4 59.8 30.8 68.9
Other comprehensive income
Translation differences 21.2 -24.4 -4.8 18.2 28.7
Cash flow hedges 17.3 -14.3 10.6 -4.6 -0.2
Income tax related to
cash flow hedges -4.5 3.7 -2.8 1.2 0.0
----------------------------------------------------------------------
Other comprehensive income,
net of tax 34.0 -35.0 3.0 14.8 28.5
----------------------------------------------------------------------
Total comprehensive income 89.3 12.4 62.8 45.6 97.4
----------------------------------------------------------------------
Total comprehensive income attributable to:
Equity holders of the parent
company 89.2 12.3 62.7 45.5 97.3
Non-controlling interests 0.1 0.1 0.1 0.1 0.1
NET SALES BY BUSINESS SEGMENT
7-9/ 7-9/ Change 1-9/ 1-9/ Change
2011 2010 % 2011 2010 % 2010
--------------------------------------------------------------------
Winter and Outdoor 395.7 300.3 32 762.6 598.5 27 1,015.0
Ball Sports 106.7 114.0 -6 402.0 413.3 -3 520.6
Fitness 56.8 52.6 8 159.3 145.2 10 204.8
--------------------------------------------------------------------
Total 559.2 466.9 20 1,323.9 1,157.0 14 1,740.4
--------------------------------------------------------------------
EBIT BY BUSINESS SEGMENT
7-9/ 7-9/ Change 1-9/ 1-9/ Change
2011 2010 % 2011 2010 % 2010
------------------------------------------------------------
Winter and Outdoor 79.3 58.2 36 73.5 35.7 86.9
Ball Sports -1.1 3.5 25.7 34.9 -26 29.5
Fitness 2.8 2.8 0 5.8 -1.6 0.4
Headquarters -6.6 -8.7 -15.8 -20.6 -20.0
------------------------------------------------------------
Total 74.4 55.8 33 89.2 48.4 84 96.8
------------------------------------------------------------
GEOGRAPHIC BREAKDOWN OF NET SALES
7-9/ 7-9/ Change 1-9/ 1-9/ Change
2011 2010 % 2011 2010 % 2010
--------------------------------------------------------------
Americas 203.8 192.3 6 536.7 503.8 7 687.9
EMEA 300.0 226.9 32 643.8 519.9 24 845.7
Asia Pacific 55.4 47.7 16 143.4 133.3 8 206.8
--------------------------------------------------------------
Total 559.2 466.9 20 1,323.9 1,157.0 14 1,740.4
--------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
Note 7-9/2011 7-9/2010 1-9/2011 1-9/2010 2010
--------------------------------------------------------------------------------
Earnings before interest and
taxes 74.4 55.8 89.2 48.4 96.8
Adjustments to cash flow from
operating activities and
depreciation 8.4 8.3 26.9 26.7 28.3
Change in working capital -154.6 -145.8 -132.1 -59.4 -18.8
--------------------------------------------------------------------------------
Cash flow from operating
activities
before financing items and taxes -71.8 -81.7 -16.0 15.7 106.3
Interest paid and received -1.2 -1.7 -13.3 -9.2 -14.3
Income taxes paid and received -7.7 -1.6 -18.0 2.7 -11.9
--------------------------------------------------------------------------------
Net cash flow from operating
activities -80.7 -85.0 -47.3 9.2 80.1
Sold operations - - 5.3 - -
Capital expenditure on non-
current
tangible and intangible assets -9.9 -7.2 -28.9 -18.7 -39.9
Proceeds from sale of tangible
non-
current assets 0.2 0.7 0.5 1.9 9.9
--------------------------------------------------------------------------------
Net cash flow from investing
activities -9.7 -6.5 -23.1 -16.8 -30.0
Net cash flow after investing
activities
(free cash flow) -90.4 -91,5 -70.4 -7,6 50.1
Repurchase of own shares -18.0 - -27.2 - -
Interest on hybrid bond - - -7.2 -7.2 -7.2
Dividends paid 4 - - -36.4 -19.5 -19.5
Change in debt and other
financing
Items 137.3 -43.5 132.3 -40.1 -64.3
--------------------------------------------------------------------------------
Net cash flow from financing
activities 119.3 -43.5 61.5 -66.8 -91.0
Cash and cash equivalents on
July 1/January 1 46.0 185.9 84.7 121.6 121.6
Translation differences 0.7 -0.7 -0.2 3.0 4.0
Change in cash and cash
equivalents 28.9 -135.0 -8.9 -74.4 -40.9
--------------------------------------------------------------------------------
Cash and cash equivalents on
September 30/December 31 75.6 50.2 75.6 50.2 84.7
CONSOLIDATED BALANCE SHEET
September September December
Note 30, 2011 30, 2010 31, 2010
----------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------
Goodwill 285.0 286.1 286.7
Other intangible non-current assets 205.7 208.8 214.2
Tangible non-current assets 146.3 135.2 140.2
Other non-current assets 98.8 73.5 100.5
Inventories and work in progress 384.6 354.8 302.1
Receivables 590.5 486.6 525.4
Cash and cash equivalents 75.6 50.2 84.7
----------------------------------------------------------------------------
Total assets 2 1,786.5 1,595.2 1,653.8
----------------------------------------------------------------------------
Shareholders' equity and liabilities
----------------------------------------------------------------------------
Shareholders' equity 786.1 757.5 790.2
Long-term interest-bearing liabilities 330.0 290.2 278.7
Other long-term liabilities 20.4 18.1 19.6
Current interest-bearing liabilities 174.7 101.5 100.8
Other current liabilities 446.5 399.9 434.6
Provisions 28.8 28.0 29.9
----------------------------------------------------------------------------
Total shareholders' equity and liabilities 1,786.5 1,595.2 1,653.8
----------------------------------------------------------------------------
Equity ratio, % 44.0 47.5 47.8
Gearing, % 55 45 37
EUR 1.00 = USD 1.3503 1.3412 1.3362
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Fair Inves-
Fund Trans- value ted
Sh- Pre- for lation and unre- Retai-
are mi- own diffe- other stricted ned
capi- um sha- ren- reser- equity Hybrid ear-
Note tal fund res ces ves reserve bond nings Total
-----------------------------------------------------------------------------
Balance at
Jan. 1,
2010 292.2 12.1 -5.6 -63.0 -5.4 151.5 60.0 290.9 732.7
Other
compre-
hensive
income:
Translation
differences 18.2 18.2
Cash flow
hedges -4.6 -4.6
Income tax
related to
cash flow
hedges 1.2 1.2
Net result 30.7 30.7
Total
comp-
rehensive
income 18.2 -3.4 30.7 45.5
Transact-
ions with
owners:
Dividend
distribution 4 -19.4 -19.4
Interest on
hybrid
bond -3.9 -3.9
-----------------------------------------------------------------------------
Balance at
Sep. 30,
2010 292.2 12.1 -5.6 -44.8 -8.8 151.5 60.0 298.3 754.9
Balance at
Jan. 1,
2011 292.2 12.1 -5.6 -34.3 -5.6 151.5 60.0 317.3 787.6
Other
compre-
hensive
income:
Translation
differences -4.8 -4,8
Cash flow
hedges 10.6 10.6
Income tax
related to
cash flow
hedges -2.8 -2.8
Net result 59.7 59.7
Total
comp-
rehensive
income -4.8 7.8 59.7 62.7
Transact-
ions with
owners:
Repurch-
ase of
own
shares -29.7 -29.7
Share-
based
incentive
programs 5.4 1.0 6.4
Dividend
distribution 4 -36.3 -36.3
Interest on
hybrid
bond -7.2 -7.2
-----------------------------------------------------------------------------
Balance at
Sep. 30,
2011 292.2 12.1 -29.9 -39.1 2.2 151.5 60.0 334.5 783.5
Total
Non- share-
cont- hold-
rolling ers'
inte- equ-
Note rests ity
---------------------------------
Balance at
Jan. 1,
2010 2.6 735.3
Other
compre-
hensive
income:
Translation
differences 18.2
Cash flow
hedges -4.6
Income tax
related to
cash flow
hedges 1.2
Net result 0.1 30.8
Total
comp-
rehensive
income 0.1 45.6
Transact-
ions with
owners:
Dividend
distribution 4 -0.1 -19.5
Interest on
hybrid
bond -3.9
---------------------------------
Balance at
Sep. 30,
2010 2.6 757.5
Balance at
Jan. 1,
2011 2.6 790.2
Other
compre-
hensive
income:
Translation
differences -4.8
Cash flow
hedges 10.6
Income tax
related to
cash flow
hedges -2.8
Net result 0.1 59.8
Total
comp-
rehensive
income 0.1 62.8
Transact-
ions with
owners:
Repurch-
ase of
own
shares -29.7
Share-
based
incentive
programs 6.4
Dividend
distribution 4 -0.1 -36.4
Interest on
hybrid
bond -7.2
---------------------------------
Balance at
Sep. 30,
2011 2.6 786.1
QUARTERLY BREAKDOWN OF NET SALES AND EBIT
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/
NET SALES 2011 2011 2011 2010 2010 2010 2010 2009
------------------------------------------------------------------
Winter and Outdoor 395.7 133.4 233.5 416.5 300.3 116.5 181.7 329.2
Ball Sports 106.7 136.3 159.0 107.3 114.0 153.9 145.4 94.7
Fitness 56.8 45.9 56.6 59.6 52.6 47.1 45.5 58.9
------------------------------------------------------------------
Total 559.2 315.6 449.1 583.4 466.9 317.5 372.6 482.8
------------------------------------------------------------------
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/
EBIT 2011 2011 2011 2010 2010 2010 2010 2009
------------------------------------------------------------------
Winter and Outdoor 79.3 -15.1 9.3 51.2 58.2 -24.2 1.7 42.5
Ball Sports -1.1 9.1 17.7 -5.4 3.5 17.0 14.4 2.2
Fitness 2.8 -0.3 3.3 2.0 2.8 -3.7 -0.7 -0.5
Headquarters -6.6 -4.6 -4.6 0.6 -8.7 -6.0 -5.9 -4.8
------------------------------------------------------------------
Total 74.4 -10.9 25.7 48.4 55.8 -16.9 9.5 39.4
------------------------------------------------------------------
THE NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The interim financial information has been prepared in accordance with IAS 34
'Interim Financial Reporting' and in compliance with IFRS standards and
interpretations in force as at January 1, 2011, as adopted by the EU. The IFRS
recognition and measurement principles as described in the annual financial
statements for 2010 have also been applied in the preparation of the interim
financial information, with the changes mentioned below.
The relative proportion of the estimated tax charge for the full financial year
has been charged against the result for the period.
Standards, interpretations and amendments adopted from the beginning of 2011:
The following new standards, interpretations and amendments have been adopted
when applicable: IFRS 1 (amendment), IAS 24 (amendment), IAS 32 (amendment),
IFRIC 14 (amendment) and IFRIC 19 and the annual improvements. The amendments or
interpretations did not have any material impact on the consolidated financial
statements.
2. SEGMENT INFORMATION
Amer Sports has three business segments: Winter and Outdoor, Ball Sports and
Fitness.
The accounting policies for segment reporting do not differ from the Group's
accounting policies. The decisions concerning assessing the performance of
segments and allocation of resources to the segments are based on segments' net
sales and earnings before interest and taxes. The chief operating decision maker
of Amer Sports is the Executive Board.
There were no intersegment business operations during the reported periods.
Earnings Financing
before income Earnings
interest and and before
Net sales taxes expenses taxes Assets
---------------------------------------------------------------------
1-9/2011
Winter and Outdoor 762.6 73.5 983.5
Ball Sports 402.0 25.7 355.0
Fitness 159.3 5.8 231.5
---------------------------------------------------------------------
Segments, total 1,323.9 105.0 1,570.0
---------------------------------------------------------------------
Unallocated items*) -15.8 -14.4 216.5
---------------------------------------------------------------------
Group total 1,323.9 89.2 -14.4 74.8 1,786.5
---------------------------------------------------------------------
1-9/2010
Winter and Outdoor 598.5 35.7 852.0
Ball Sports 413.3 34.9 354.0
Fitness 145.2 -1.6 219.6
---------------------------------------------------------------------
Segments, total 1,157.0 69.0 1,425.6
---------------------------------------------------------------------
Unallocated items*) -20.6 -15.6 169.6
---------------------------------------------------------------------
Group total 1,157.0 48.4 -15.6 32.8 1,595.2
---------------------------------------------------------------------
2010
Winter and Outdoor 1,015.0 86.9 848.7
Ball Sports 520.6 29.5 365.8
Fitness 204.8 0.4 229.1
----------------------------------------------------
Segments, total 1,740.4 116.8 1,443.6
----------------------------------------------------
Unallocated items*) -20.0 -21.3 210.2
----------------------------------------------------
Group total 1,740.4 96.8 -21.3 75.5 1,653.8
----------------------------------------------------
*) Earnings before interest and taxes include income and expenses of corporate
headquarters.
GEOGRAPHIC BREAKDOWN OF NET SALES
1-9/ 1-9/
2011 2010 2010
------------------------------------
Americas 536.7 503.8 687.9
EMEA 643.8 519.9 845.7
Asia Pacific 143.4 133.3 206.8
------------------------------------
Total 1,323.9 1,157.0 1,740.4
------------------------------------
3. DERIVATIVE FINANCIAL INSTRUMENTS
September September December
30, 2011 30, 2010 31, 2010
---------------------------------------------------------
Nominal value
Foreign exchange derivatives 721.7 608.7 678.1
Interest rate swaps 144.1 284.1 169.8
Cross currency swaps 54.0 - -
Fair value
Foreign exchange derivatives 5.4 -5.7 -9.1
Interest rate swaps -3.7 -4.3 -2.8
Cross currency swaps 0.3 - -
4. DIVIDENDS
Dividends distributed in March 2011 by Amer Sports to its shareholders and
minority shareholders of its subsidiaries amounted to EUR 36.4 million relating
to the year ending on December 31, 2010 (2010: 19.5). Dividends distributed to
the shareholders of Amer Sports Corporation were EUR 0.30 per share and in total
EUR 36.3 million (2010: EUR 0.16 per share and in total EUR 19.4 million).
5. CONTINGENT LIABILITIES AND SECURED ASSETS
September 30, September 30, December 31,
2011 2010 2010
--------------------------------------------------------------------------------
Guarantees 20.3 13.6 14.1
Liabilities for leasing and rental
agreements 115.8 114.8 123.2
Other liabilities 28.3 26.9 18.7
There are no guarantees or contingencies given for the management of the
company, the shareholders or the associated companies.
6. SEASONALITY
Although Amer Sports operates in a number of sporting goods segments during all
four seasons, its business is subject to seasonal fluctuations. Historically,
the third and fourth quarters of a financial year have been the strongest
quarters for Amer Sports in terms of both net sales and profitability, mainly
because sales of winter sports equipment ahead of the winter season typically
take place during the third and fourth quarters. The summer season for ball
sports balances seasonality to a certain extent, as the strongest quarters for
the Ball Sports segment are the first and second quarters. Usually the net cash
flow from operating activities is very strong in the first quarter when the
income from winter sports equipment realizes. Especially during the third
quarter, the net cash flow from operating activities is tied up in working
capital.
All forecasts and estimates presented in this report are based on the
management's current judgment of the economic environment. The actual results
may differ significantly.
AMER SPORTS CORPORATION
Board of Directors
[HUG#1558622]
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