Sports Equipment Manufacturer Head Releases Its Mid-Year Results; Net Loss Of $12.4M
Sports equipment manufacturer Head released its unaudited results for the first three and six month of '12. Sales for the the first six months were up by 12.1% compared to the first six months of '11. This increase is driven by racquet sports, especially in North America, and compounded by favorable exchange rate movements and positive results from other divisions. The racquet sports market started the year positively in North America where the company achieved record sales, but the worldwide growth in the first quarter of 21.3% slowed in the second quarter to 9.9%. The overall growth for the first six months of the year of 15.7% compared to the prior year has been achieved through higher volumes and favorable product mix in both racquets and balls, supported by positive exchange rate movements. Sportswear sales for the first six months improved by €1M ($1.2M) or 42.4% due to higher sales of summer sportswear. Winter sports sales were also ahead by 2.6% for the first six months of the comparable period in '11. For the first six months to June 30 interest and other financial costs decreased by €1.8M ($2.2M). In the first half of the year, Head posted a net loss of €10.1M ($12.4M) compared to €13M in the comparable '11 period. Net debt increased by €9.3M ($11.4M) from June 30, 2011 to June 30, 2012 due mainly to higher working capital needs (Head).