Amer Sports Corporation Interim Report January-March 2014

April 24, 2014 / Amer Sports Corporation / STOCK EXCHANGE RELEASE

JANUARY-MARCH 2014

• Net sales EUR 501.5 million (493.0). Solid, broad-based growth of 6% in local currencies, despite challenging trading conditions in Russia and bad weather conditions in main markets.  
• Gross margin 44.3% (44.2%).
• EBIT EUR 20.6 million (26.4), heavily impacted by currencies.
• Earnings per share EUR 0.07 (0.13).
• Net cash flow after investing activities EUR 44.2 million (67.9).
• Gearing 58% (March 31, 2013: 56%).
• Outlook for 2014 unchanged.

OUTLOOK FOR 2014

Amer Sports expects global trading conditions to remain challenging, with some regional improvements. In 2014, Amer Sports' net sales growth in local currencies is expected to meet at minimum the company's long-term annual 5% growth target, and EBIT excluding non-recurring items is expected to improve from 2013. The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence.

KEY FIGURES

EUR million	1-3/2014	1-3/2013	2013
Net sales	501.5	493.0	2,136.5
Gross profit	222.3	217.7	932.2
Gross profit %	44.3	44.2	43.6
EBIT excluding non-recurring items	20.6	26.4	154.9
EBIT % excluding non-recurring items	4.1	5.4	7.3
Non-recurring items*)	-	-	-
EBIT total	20.6	26.4	154.9
EBIT %	4.1	5.4	7.3
Financing income and expenses	-9.2	-6.7	-28.6
Earnings before taxes	11.4	19.7	126.3
Net result	8.2	14.8	90.3
Earnings per share, EUR	0.07	0.13	0.77
Net cash flow after investing activities	44.2	67.9	42.5
Equity ratio, % at period end	40.5	40.5	37.5
Gearing, % at period end	58	56	57
Personnel at period end	7,370	7,236	7,330
Average rates used, EUR/USD	1.37	1.32	1.33

*) 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 a material impact on EBIT.

HEIKKI TAKALA, PRESIDENT AND CEO:

We delivered a good start for the year with a solid 6% growth and slightly improved gross margin, driven by broad-based double-digit growth in several of our strategic growth areas. During the quarter we also faced quite some challenges, including a mild winter which impacted adversely especially cross-country skiing, however the Winter Sports Equipment business showed remarkable resilience and even good growth in parts of the portfolio. 

In tennis we declined as intended, largely due to cleaning up some unprofitable sales with the objective to ignite more profitable growth in Wilson. In Russia, we faced challenges due to declining consumer demand and devaluation of the currency which caused a decline in our EBIT. 

The trading conditions have been more unfavorable than expected; nevertheless I'm pleased with the progress in our own actions. Our long-term strategies are working and we continue to execute with appropriate agility, looking forward to another year of growth and improvement.

For further information, please contact:

Heikki Takala, President and CEO
Tel. +358 9 7257 8210, as of April 28 +358 20 712 2510

Jussi Siitonen, CFO
Tel. +358 9 7257 8212, as of April 28 +358 20 712 2511

Päivi Antola, Director, Corporate Communications and IR
Tel. +358 9 7257 8233, as of April 28 +358 20 712 2537

New address as of April 28, 2014: Aleksis Kiven katu 17 A, P.O. Box 1000, FI-00511 Helsinki

TELEPHONE CONFERENCE

An English-language conference call for investors and analysts will be held today at 3:00 pm Finnish time. To participate in the call, please dial +44 (0)20 3427 1920 (UK/international dial-in number) and the access code 7636738. The conference call can also be followed at www.amersports.com. A recorded version and a transcript will be available later at the same web address. The replay number of the call is +44 (0)20 3427 0598, and the access code 7636738#.

SECOND QUARTER RESULTS BULLETIN
Amer Sports will publish its Q2/2014 results bulletin on Thursday, July 24, 2014 at approximately 1:00 pm Finnish time.

DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.amersports.com

AMER SPORTS

Amer Sports (www.amersports.com) is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc'teryx, Mavic, Suunto and Precor. The company's technically-advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group's business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports shares are listed on the NASDAQ OMX Helsinki stock exchange (AMEAS).

• Amer Sports Interim Report Q1 2014