Mavic’s Sales Down 13% in First Half 09
Bicycle component manufacturer Mavic saw its sales drop by 12.8% during the first half of 2009. After a very weak start of the year, Mavic MD Bernard Millaud (photo) recently said deliveries
ANNECY, France – Bicycle component manufacturer Mavic saw its sales drop by 12.8% during the first half of 2009. After a very weak start of the year, Mavic MD Bernard Millaud (photo) recently said deliveries started to stabilize.
What was also stated by him at the publication of the half year results of ‘mother’ Amer Sports, was that: “The capacity constraints in high-end wheels continued to negatively impact both the sales and margins. The R-SYS recall is now almost complete. The customer feedback on the execution of the recall has been positive.”
The sales total at Mavic for the first six months stood at € 51.8 million against € 59.4 million one year earlier. The biggest drop was felt in the first quarter as in the second one sales of cycling equipment downed by 5 to € 24.6 million.
The almost completed R-SYS recall had to do with the possible breaking of carbon tubular spokes of the R-SYS front wheel. All models of Mavic R-SYS front wheels were concerned (R-SYS, R-SYS test, R-SYS Premium).
‘Mother’ Amer Sports net sales of € 640.0 million were at last year’s level. By continent net sales decreased by 14% in the Americas, increased by 2% in Europe and decreased by 2% in Asia Pacific. EBIT was € 36.3 million (-7.8%). Earnings per share were € -0.49 (-0.23%). Amer Sports said that the weakened results reflect the challenging market conditions, particularly in the US. Last year’s result includes a capital gain of € 13 million from selling the company’s corporate headquarters building.
Amer Sports’ market outlook has not materially changed during the second quarter and the company expects that the market will remain challenging during the rest of the year. Amer Sports’ EBIT for the full-year 2009 will be below last year’s level. The expected improvement in Winter Sports Equipment due to previously implemented cost efficiency measures is more than offset by weakness in Amer Sports’ other businesses.