Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for the Three Months ended 31st March 2011.
(Thomson Reuters ONE) -
Head N.V. /
Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for
the Three Months ended 31st March 2011.
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
Amsterdam - 12(th) May 2011 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading
global manufacturer and marketer of sports equipment, and HTM Sport GmbH, a
subsidiary of Head NV, announced the following results today.
As anticipated, 2011 has been more challenging than 2010.
In winter sports, the good early snow did not last in Europe, and by mid January
sales reorders reduced considerably driving sales down in the division by nearly
7% for the first quarter.
Our tennis division reported lower volume of ball sales and a decline in racquet
sales due to a later introduction of new products in 2011.
While the diving market started well in 2011, it was severely impacted by both
political turbulence in key dive destinations in north Africa and natural
disasters in Australia and Japan.
Our newly introduced Sportswear Division generated nearly ?1m in sales in the
first quarter, but we do not expect it to be profitable this year.
Overall, sales for the group declined by nearly 2%.
The adjusted operating loss for the three month period increased by ?2.2m
compared to prior year. Of this, ?0.5m was due to lower sales but at broadly
flat gross margins and the balance of ?1.7m was due mainly to increased selling
and marketing costs. The increase in selling and marketing includes higher
distribution costs.
The net loss increased by ?5.2m in the three months to 31st March 2011 compared
to the same period in 2010 mainly due to the lower adjusted operating
performance compounded by lower ESOP income, and higher interest and other
finance costs. The increase in interest and other finance costs of ?3.1m in the
period mainly arose due to the buy back of ?14.4m of par value senior notes and
the resultant acceleration of the amortization of non-cash disagio costs.
Operating cashflow for the first quarter declined by ?8.9m due to lower
operating results and an increase in working capital. The increase in working
capital is a result of returning to more normalised levels after the very tight
controls in place during 2009 and 2010 which cannot be maintained long term, and
the lower level of sales resulting in inventory build up.
The year has begun with some challenges, both natural in the form of rain,
floods, fires and tsunamis and man-made in the form of political unrest. In
addition, the impact of raw material price rises mentioned back in February has
yet to fully impact our margins, but we are anticipating this to be reflected in
the results during the second half of the year. Overall, we believe that the
operating results will be significantly below those achieved in 2010.
The Head NV AGM will be held on the 26 May 2011, full details are on our
website.
About Head
HEAD NV is a leading global manufacturer and marketer of premium sports
equipment.
HEAD NV's ordinary shares are listed on the Vienna Stock Exchange ("HEAD").
Our business is organized into five divisions: Winter Sports, Racquet Sports,
Diving, Sportswear and Licensing. We sell products under the HEAD (tennis,
squash and racquetball racquets, tennis balls, tennis footwear, badminton
products, alpine skis, ski bindings and ski boots, snowboards, bindings and
boots and sportswear), Penn (tennis and racquetball balls), Tyrolia (ski
bindings) and Mares (diving equipment) brands.
For more information, please visit our website: www.head.com
Analysts, investors, media and others seeking financial and general information,
please contact:
Clare Vincent, Investor Relations
Tel: +44 207 499 7800
Fax: +44 207 491 7725
E-mail:headinvestors(at)aol.com
Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax +43 5574 608 130
E-mail:g.hagspiel(at)head.com
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. When used in this press
release, the words "anticipate", "believe", "could", "estimate", "expect",
"intend", "may", "plan", "predict", "project", "will" and similar terms and
phrases, including references to assumptions, as they relate to Head NV, its
management or third parties, identify forward-looking statements. Forward-
Looking statements include statements regarding Head NV's business strategy,
financial condition, results of operations, and market data, as well as any
other statements that are not historical facts. These statements reflect beliefs
of Head NV's management as well as assumptions made by its management and
information currently available to Head NV. Although Head NV believes that these
beliefs and assumptions are reasonable, the statements are subject to numerous
factors, risks and uncertainties that could cause actual outcomes and results to
be materially different from those projected. These Factors include, but are not
limited to, the following: the still possible impact of the global economic
turmoil, weather and other factors beyond our control, competitive pressures and
trends in the sporting goods industry, our ability to implement our business
strategy, our liquidity and capital expenditures, our ability to obtain
financing, our ability to compete, including internationally, our ability to
introduce new and innovative products, legal proceedings and regulatory matters,
our ability to fund our future capital needs, and general economic conditions.
These factors, risks and uncertainties expressly qualify all subsequent oral and
written forward-looking statements attributable to Head NV or persons acting on
its behalf.
Head NV
Rokin 55
NL 1012 KK Amsterdam
Shares:
ISIN: NL0000238301
Stock Market: Official Market of the Vienna Stock Exchange
Notes:
HTM Senior Notes ISIN: XS0184717956 and XS0184719143
HTM Senior Secured Notes ISIN: XS0447202218 and XS044702309
Listing: Luxembourg Stock Exchange
The full press release including tables can be downloaded from the following
link:
--- End of Message ---
Head N.V.
Rokin 55 Amsterdam Niederlande
WKN: 577203 ;ISIN: NL0000238301;
Results Q1 2011:
http://hugin.info/133711/R/1514651/450784.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Head N.V. via Thomson Reuters ONE
[HUG#1514651]
Unternehmensinformation / Kurzprofil:
Datum: 12.05.2011 - 08:59 Uhr
Sprache: Deutsch
News-ID 54579
Anzahl Zeichen: 7700
contact information:
Town:
Amsterdam
Kategorie:
Business News
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"Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for the Three Months ended 31st March 2011."
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