Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for the Three and Six Months ended 30th June 2010.
Head N.V. / Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for the Three and Six Months ended 30th June 2010. processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Amsterdam - 12th August 2010 - Head N.V. (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.
For the six months ended June 30, 2010 total net revenues increased by â‚¬5.5
million, or 4.8%, to â‚¬120.0 million from â‚¬114.4 million in the comparable 2009
period. This increase was mainly due to improved winter sports and racquet
sports sales offset by a decline in licensing and diving.
The first six months of the year are not significant for the winter sports
division, as typically less than 15% of the annual revenues are derived in this
period. The increase in the sales in this period was due to higher volumes and
some improved mix.
Racquet sales for the first six months grew from a combination of exchange rate
movements (the US dollar strengthened in the period), higher volumes in both
racquets and balls and some mix improvement in racquets in the first quarter,
offset by mix decline in balls.
Diving saw a slight improvement in sales in the three months to 30th June 2010
compared to the same period in 2009, but overall the six months to June
30th 2010 resulted in a slight decline compared to the prior year, as consumers
still appear to be wary of spending on items at these high price points.
The sales improvement for the first six months of 2010 compared to 2009,
combined with improved margins positively impacted the adjusted operating loss
which decreased by â‚¬2.7m during the period. The margin improvement was caused by
some manufacturing improvements and mix in the first quarter which were off set
in part by higher raw material costs, exchange fluctuations and a deteriorating
mix in racquet sports in the second quarter.
The net loss decreased by over â‚¬7m in the six months to 30th June 2010 compared
to the same period in 2009 mainly due to the improved adjusted operating
performance compounded by ESOP income, lower interest costs and no restructuring
or bond exchange costs in 2010.
Operating cashflow for the first six months of 2010 compared to the same period
in 2009 improved by â‚¬8.9m due to enhanced operating results and tighter working
capital management. The positive trend in the first quarter of 2010 compared to
the same period in 2009 when operating cashflow improve by â‚¬12.6m was, however,
reversed in the second quarter when it deteriorated by â‚¬3.8m mainly due to the
higher adjusted operating loss in the second quarter.
The overall improved cashflow and the success of our bond exchange in 2009 has
brought our net debt down from â‚¬131.2m at the 30th June 2009 to â‚¬57.1m at the
30th June 2010.
Based on our current order book, we expect sales to be slightly ahead of last
years, but conditions in the industry still remain tough, economic conditions
uncertain, and margins suppressed due to mix changes, increasing raw material
costs and foreign exchange movements. We will need to continue with
restructuring programmes in order to further reduce costs so that we remain
price competitive in what continues to be a difficult industry in which to
HEAD NV is a leading global manufacturer and marketer of premium sports
HEAD NV's ordinary shares are listed on the Vienna Stock Exchange ("HEAD").
Our business is organized into four divisions: Winter Sports, Racquet Sports,
Diving and Licensing.Â We sell products under the HEAD (tennis, squash and
racquetball racquets, tennis balls, tennis footwear, badminton products,
swimwear, alpine skis, ski bindings and ski boots, snowboards, bindings and
boots), Penn (tennis and racquetball balls), Tyrolia (ski bindings), and
Mares/Dacor (diving equipment) brands.
We hold leading positions in all of our product markets and our products are
endorsed by some of the world's top athletes including;
Skiers: Bode Miller, Didier Cuche, Aksel Lund Svindal, Ted Ligety, Werner Heel,
Kjetil Jansrud, Patrick Staudacher, Hans Grugger, Hermann Maier, Franz Klammer,
Jon Olsson, Lindsey Vonn, Maria Riesch, Anja Parson, Elisabeth Gorgl, Sarka
Tennis players: Novak Djokovic, Andy Murray, Robin Soderling, Marin Cilic,
Svetlana Kuznetsova, Victoria Azarenka
For more information, please visit our website:www.head.com
Analysts, investors, media and others seeking financial and general information,
Clare Vincent, Investor Relations
Tel: +44 207 499 7800
Fax: +44 207 491 7725
Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax +43 5574 608 130
This press release should be read in conjunction with the company's report for
the three and six months ended 30th June 2010.
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 N.V., its
management or third parties, identify forward-looking statements.
Forward-Looking statements include statements regarding Head N.V.'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 N.V.'s management as well as assumptions made by its management
and information currently available to Head N.V. Although Head N.V. 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 impact of the current global economic
turmoil, weather and other factors beyond their control, competitive pressures
and trends in the sporting goods industry, our ability to implement their
business strategy, our liquidity and capital expenditures, our ability to obtain
financing, our ability to realize the cost savings expected from the cost
reduction program, our ability to compete, including internationally, our
ability to introduce new and innovative products, legal proceedings and
regulatory matters, our ability to fund their 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
N.V. or personsÂ acting on its behalf.
NL 1012 KK Amsterdam
Stock Market: Vienna Stock Exchange
HTM Sport GmbH
A 2320 Schwechat
ISIN 8.5% Senior Notes: XS0184717956 / XS0184719143
ISIN 10.0% Senior Secured Notes: XS0447202218 / XS0447202309
Official Market: Luxembourg
The full press release including tables can be downloaded from the following
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WKN: 577203 ;ISIN: NL0000238301;
2nd Quarter 2010:
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