Head NV (VSX:HEAD; U.S. OTC:HEDYY.PK) reported lower revenue and a steeper loss for the first quarter 2011, partly due to lower snow levels in Europe this winter denting its wintersports sales.
The Nederlands-based company, best know for its snow and racket sports gear, reported revenue down 2 percent to EUR 59.8 million (USD $85.1 million) in the first quarter 2011, compared to the same period a year ago.
Head’s wintersports division sales declined 7 percent to EUR 13 million (USD $18.5 million) during the quarter, from a year ago.
The company reported a quarterly net loss of EUR 7.7 million (USD $11 million) versus a EUR 2.5 million (USD $3.6 million) loss a year ago. The wider loss was due to lower sales, coupled with higher finance costs.
“As anticipated, 2011 has been more challenging than 2010,” company officials said in a press release. “In wintersports, the good early snow did not last in Europe, and by mid January sales reorders reduced considerably driving sales down.”
Company officials said the company’s newly introduced sportswear division generated nearly EUR 1 million in sales, but it does not expect to be profitable this year.
Looking ahead, companywide, officials said its 2011 operating results “will be significantly below those achieved in 2010.”
-- Compiled by David Clucas
(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 May 12, 2011.)
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