Fitness financials: FY ’09 sales for Amer Sports’ fitness segment down 15 percent, plus Nike

As a whole, Amer Sports said 2009 was a challenging year due to the recessionary environment, leading the company to have its weakest results of the past decade. Sales for its fitness segment were down 15 percent in local currencies for the year. Also, Nike declares a dividend.
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FY ’09 sales for Amer Sports’ fitness segment down 15 percent

As a whole, Amer Sports said 2009 was a challenging year due to the recessionary environment, leading the company to have its weakest results of the past decade. Sales for its fitness segment were down 15 percent in local currencies for the year.

For the fourth quarter, net sales fell 3 percent to EUR 482.8 million (USD $657.8 million) versus EUR 495.3 million (USD $674.9 million) in the same period the year before. In local currencies, net sales were at last year's level. Net sales fell by 6 percent in the Americas, increased by 8 percent in the EMEA region and fell by 4 percent in Asia Pacific in local currency terms.

EBIT was up 12 percent to EUR 39.4 million (USD $53.6 million) compared to EUR 35.2 million (USD $47.9 million) last year. Earnings per share were EUR 0.37 (USD $0.50) versus 2008’s EUR 0.20 (USD $0.27).

In the fitness category, quarterly net sales were status quo: EUR 58.9 million (USD $80.2 million) versus EUR 58.7 million (USD $79.9 million) last year. In local currencies, net sales were up 10 percent.

It did report an EBIT loss of 0.5 million (USD $681,320) versus a loss of EUR 2.3 million (USD $3.1 million) last year, including bad debt provisions of EUR 5 million (USD $6.8 million).

For the FY ’09, Amer Sports reported net sales of EUR 1.53 billion (USD $2.08 billion) -- down 3 percent from 2008’s EUR 1.57 billion (USD $2.13 billion). In local currencies, net sales fell by 4 percent. Net sales fell by 12 percent in the Americas, increased by 3 percent in the EMEA region and fell by 3 percent in Asia Pacific in local currency terms.

EBIT plummeted 44 percent to EUR 43.8 million (USD $59.6 million) versus EUR 78.9 million (USD $107.5 million) in 2008. The company said the result reflects the challenging operating environment in North America, as well as a one-time charge of EUR 5 million (USD $6.8 million). Earnings per share were EUR 0.28 (USD $0.38) versus last year’s EUR 0.37 (USD $0.50).

In 2009, fitness' net sales fell by 15 percent in local currencies to EUR 194.1 million (USD $264.4 million) versus EUR 220.3 million (USD $300.1 million) last year. The Americas accounted for 72 percent of net sales, EMEA for 20 percent, and Asia Pacific for 8 percent.

The fitness segment reported an EBIT loss of EUR 7.5 million (USD $10.2 million) versus EUR 3.8 million (USD $5.1 million) last year. The company said it was hindered by a sharp fall in sales, which could not be fully offset by the cost reduction programs.

Amer Sports said fitness equipment manufacturers worldwide experienced significant reductions in sales in both the commercial and consumer markets during 2009. Of Precor's net sales, clubs and institutions represented 87 percent and home use was 13 percent.

The commercial business clubs and institutions fell by 14 percent in local currencies, while the business dropped 19 percent in local currencies.

Amer Sports said of the fitness unit, “In the near-term, the outlook for the industry is uncertain. However, as 2009 progressed sales became more predictable and, in the fourth quarter, Precor returned to growth.”

(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Feb. 12.)

Nike declares dividend

The board of directors of Nike (NYSE: NKE) declared a quarterly cash dividend of $0.27 per share on the company’s outstanding Class A and Class B common stock. It is payable on April 1 to shareholders of record on March 8.

--Compiled by Wendy Geister

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