HEAD NV net revenues fall 17.1% to €92.8 mn

10 Nov '07

2 min read

Head N.V., a leading global manufacturer and marketer of sports equipment, announced the following results.

For the three months ended 30 September 2007 compared to the three months ended 30 September 2006: net revenues were down 17.1% to €92.8 million. Operating profit decreased by €7.9 million to €8.8 million, from €16.8 million in Q3 2006. The net profit for the period was down €6.9 to €4.1 million compared to a net profit of €11.0 million in Q3 2006.

For the nine months ended 30 September 2007 compared to the nine months ended 30 September 2006: net revenues were down 13.0% to €211.8 million. The Operating loss for the period was €5.4 million compared to an operating profit of €9.4 million in comparable 2006 period. The net loss for the period was €11.9 million compared to a net profit of €1.1 million in the comparable 2006 period.

Johan Eliasch, Chairman and CEO, commented: “As anticipated, the third quarter results have been negatively impacted by the performance of the Winter Sports Division. The poor snow in the 06/07 skiing season has resulted in lower sales and utilisation of our facilities. The sales in this division for the three months were down by 30.5% and profit margins were also lower compared with the prior year.

In the Racquet Sports Division sales were up 4.2% in the last quarter due to new product introductions partly offset by strengthening of the Euro against the US dollar. The currency movement has improvedour gross margin resulting in overall gross profits up slightly in this division.

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