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Mavic Sales Increase 14 Percent in Q3

Published October 28, 2010

HELSINKI, Finland (BRAIN)—Mavic’s sales jumped 14 percent in the third quarter of the year as next year’s preseason orders began shipping, according to an earnings report released Thursday by Amer Sports, the wheel manufacturer’s Finnish owner.

Cycling’s net sales totaled €25.2 million ($34.3 million) compared with €21.5 million ($29.3 million) during the same period last year.

For the first nine months of the year, Mavic’s sales rose 8 percent from €230.9 million ($314.7 million) in 2009 to €265.9 million ($362.4 million) this year. In 2009, Mavic ended the year with net sales of €304.7 million.

In the third quarter, cycling contributed 9 percent to Amer’s winter and outdoor segment, which also includes winter sports equipment, apparel and footwear and sports instruments.

During a conference call with analysts on Thursday, Heikki Takala, president and CEO of Amer Sports, said that cycling remains a key part of the company.

“It’s a part of the portfolio and we continue driving it as a key asset as we used to do in the past with clear performance targets, clear metrics and expectations for growth and profitability,” he said.

Amer Sports also owns Salomon, Wilson, Suunto, Atomic, Precor and Arc’teryx. Companywide, sales were up 5 percent in local currency in the third quarter—from €410.6 million ($559.6 million) to €466.9 million (636.3 million)—and 5 percent for the first nine months of the year—from €1.05 billion ($1.43 billion) to €1.15 billion ($1.56 billion).

The company expects to end the year with net sales around €1.7 billion compared with last year’s €1.5 billion.

The sporting goods market is expected to recover moderately, but with significant regional and sports area specific differences,” the company said in its earnings report. “Winter sports equipment market has recovered due to good snow conditions during previous winter season. This season pre-orders in winter sports equipment were up approximately 15 percent compared to last year. In apparel and footwear, fall/winter pre-orders indicated a faster sales growth in the second half of the year compared to the first half, reflecting continuous improvement in the product offering and commercial gains.”

—Nicole Formosa

Topics associated with this article: Earnings/Financial Reports

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