Amer Group's Suunto and Atomic Q1 sales dip

Amer Group's net sales for the company's Q1 report -- including Precor, Wilson, Suunto and Atomic -- dipped from EUR 289.4 million ($318 million USD) in 2002 to EUR 283.9 million ($311.9 million USD) in 2003. Operating profit for the company remained flat at EUR 13.1 million ($14.4 million USD).
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Amer Group's net sales for the company's Q1 report -- including Precor, Wilson, Suunto and Atomic -- dipped from EUR 289.4 million ($318 million USD) in 2002 to EUR 283.9 million ($311.9 million USD) in 2003. Operating profit for the company remained flat at EUR 13.1 million ($14.4 million USD).

The company stated that sales remained steady in Europe, but declined by 2 percent in the United States, 6 percent in Japan, and 7 percent in Asia Pacific. The company also pointed to exchange rate fluctuations, especially the strengthening of the Euro against the dollar as a reason for reduced net sales and operating profits.

For Atomic worldwide, sales dipped 12 percent (15 percent in Europe and 5 percent in the United States) from EUR 31.1 million in 2002 ($34 million USD) to EUR 26 million in 2003 ($28.6 million USD). Atomic pointed to poor snow conditions in Austria and Germany at the beginning of the winter-sport selling season in 2002/2003 leading to low re-order levels. Since the snow has improved, Atomic feels that stock levels are at a normal level; however, the company also believes that there will be a slight downturn in the market for 2003/2004. Atomic has announced plans to increase the company's investment in its sales organization for 2003.

Suunto's sales remained at a flat level for the brand's core products, but a decline in sales of the non-core products slowed growth and caused net sales for the division to dip 7 percent from EUR 21.5 million in 2002 ($23.6 million USD) to EUR 20.1 million in 2003 ($22.1 million USD). Wrist-top computers and diving instruments accounted for 56 percent of the division's sales. Suunto expects sales to increase in the North American market following the launch of a new line of n-series sports wrist-top computers in partnership with Microsoft.

Read the full financial report at www.amersports.com

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