Once "secret" Precor financials now public -- net sales up - SNEWS

Once "secret" Precor financials now public -- net sales up

Precor parent Amer Group of Finland, which breaks out the financial results of each of its segments, reported that Precor's net sales in the first quarter of 2003 were up 5 percent in U.S. dollars, while operating profits jumped 31 percent.

Precor parent Amer Group of Finland, which breaks out the financial results of each of its segments, reported that Precor's net sales in the first quarter of 2003 were up 5 percent in U.S. dollars, while operating profits jumped 31 percent, both mostly due to the fastest-growing categories of treadmills and ellipticals.

In Euros, however, net sales dropped 6 percent based on the European Union currency's change in value and strength over the dollar in the last year -- Euro 51.4 million compared to Euro 54.9 million. Operating profit, based on Euros is up 16 percent -- Euro 8.9 million compared to Euro 7.7 million.

"North American commercial and consumer markets appear to be cooling," Amer Group said in its quarterly release. "Major club organizations are holding off on purchases, and the government market has postponed investments in fitness equipment. Consumers are similarly cautious.

"In February, a new line of C846 and C842 upright and recumbent cycles for club and commercial markets were brought to the market," the statement continued. "Despite general uncertainty, the fitness sector as a whole is expected to continue growing. Further growth is also anticipated in the popularity of elliptical fitness equipment. The fitness equipment division has good growth opportunities especially outside North America."

Amer Group has set itself the goal of becoming “the world's No. 1 sports equipment company,” and the company stated that it has "a firm foundation to advance the strategic development of its businesses." In the statement, the company (www.amersports.com) said it expects total company net sales to grow, while operating profit will decline modestly. Amer Group also owns wrist-top computer company Suunto, winter sports specialist Atomic, and Wilson Sporting Goods, which the company on April 29 announced it is reorganizing into two business segments with separate managers. Jim Baugh, who has been president of Wilson, will leave his position, the company announced, and administration will be decentralized. New heads of golf and racquet sports (Steve Millea), and team sports (Chris Considine) will report directly to Amer Group CEO Roger Talermo.

Companywide, Amer Group reported net sales in in the quarter ended March 31 of Euro 283.9 million (USD $317.25 million), compared to Euro 289.4 million (USD $323.4 million) a year ago, while operating profit remained the same at Euro 15.3 million (USD $17.1 million). Geographically, net sales in Europe were similar to 2002, but declined by 2 percent overall in North America, by 6 percent in Japan, and by 7 percent in Asia Pacific.

Across the company's segments in the first quarter, fitness equipment sales were in line with expectations, as were sales in the team sports division, while golf sales were down. Amer Tobacco's sales declined as the Finnish cigarette market shrunk.

Overall, the company said that the demand for sports equipment did not recover during the first quarter of 2003. "In Amer Group's key markets, the United States and Germany, both the trade and consumers remain cautious," the company wrote. "The growth in demand for sports instruments and fitness equipment continues, even though the growth in fitness equipment seems to be slowing down a little."

SNEWS View: Former Precor parent ITW, although public, didn't break out figures for various segments it owned in quarterly and annual financial reports. New parent Amer Group breaks out each division, laying it open for all to see, which indeed is revealing. And that's not negative since Precor showed astounding increases in operating profits -- even when considered in Euros. That was obviously a great feat considering the weaker economy where many consumers are postponing purchases.


Amer Group 3rd Q net sales down, profits up

Amer Group, new owner of Precor, has announced a decrease in third-quarter net sales to Euro 283.6 million (USD $287.3 million) from Euro 304.5 million in the same period last year, although net sales were comparable to last year's level. The decrease came partly because of the ...read more

Precor sales & profits soar after one year with Amer

Ending its first full year as a member of Finland's Amer Sports Group, Precor showed all-time highs in results, with big jumps in operating profits. Operating profits were Euro 26.8 million, compared to 2002's pro forma results of Euro 23.4 million. Net sales were up 3 percent ...read more

Fitness financials: Precor and parent Amer sales hit by weak U.S. dollar, plus Gaiam, Iconix, adidas

Precor and parent Amer sales hit by weak U.S. dollar The weakening U.S. dollar slammed Amer Sports group's net sales for the second quarter and six-month period and knocked its Precor fitness segment with double-digit percentage point sales declines for the same periods. Amer ...read more


Fitness financials: Life Fitness sales shine for parent Brunswick's 3Q earnings; plus Precor’s mixed results for Amer

A jump in Life Fitness and Hammer Strength equipment sales led the way for parent company Brunswick (NYSE:BC) to report positive earnings and profit for the third quarter 2011. A 14-percent revenue increase for Brunswick’s fitness group to $157.2 million in the third quarter, ...read more

Precor-parent Amer reports rise in net sales, becomes No. 1 worldwide with acquisition

On the heels of a strong first-quarter earnings report, Precor-parent Amer Sports announced the acquisition of Salomon, a leading action sports and outdoor adventure portfolio of brands, achieving the Helsinki, Finland-based company's long-stated goal to be the No. 1 sports ...read more

Fitness financials: Q3 sales for Amer Sports' Precor segment fall 24 percent, plus Under Armour, Hanesbrands, Brunswick

Q3 sales for Amer Sports' Precor segment fall 24 percent Hit by weak North American sales, Amer Sports reported an expected decline in company-wide net sales, but a lower-than expected sales drop of 24 percent for its Precor fitness segment. For the third quarter, Amer Sports' ...read more


Fitness financials: Precor posts 7 percent sales increase for Amer Sports, plus Life Fitness sales up 9 percent, Iconix, GSI, Sports Club, Town Sports, Hanesbrands/Champion, Play It Again Sports

Precor posts 7 percent sales increase for Amer Sports Amer Sports posted a 14-percent increase in company sales for the third quarter, saying its fitness segment, which includes Precor, had “good development” as sales increased by 7 percent and EBIT improved markedly. For the ...read more

Precor parent sales slow, expects fitness growth

Precor parent Amer Group released its second quarter and half-year earnings statement and it seems that sales of sports equipment have been slow for the Finnish company, although the acquisition of Precor (completed late last fall) increased net sales by Euro 85.8 million. For ...read more


Precor notches 5% gain in Q1 revenue for parent Amer Sports; commercial sales up, consumer down

Amer Sports’ fitness segment, which mostly includes its Precor Fitness brand, reported a 5 percent gain to EUR 59.7 million ($79.2 million) for the first quarter 2012. The positive results from Precor continued to stem from a rise in the brand’s commercial business with a 3 ...read more