According to year end financial results released by Mavic’s parent company, Amer Sports, Mavic’s net sales fell 13% in 2009. This was primarily due to declining OEM orders, a 2009 product recall and weak demand in the US.
The French manufacturer of wheel-sets, rims, components and cycle computers reported local currency equivalent sales of €100.4 million (US$137 million) in 2009. This compares to €114.2 million (US$156 million) reported by Mavic in 2008.
The biggest product categories were rims and wheels, representing 83% of net sales; and apparel and footwear with 14%. Net sales of rims and wheels fell in local currency terms by 16%, and apparel and footwear by 3%. The net sales of overall cycling activities by geographical region was as follows: EMEA 65%, Asia Pacific 21% and the Americas 14%.
Along with reduced inventories from manufacturers and dealers, Mavic was also impacted by the January 2009 recall of its R-Sys front wheel. At the beginning of 2009, Mavic decided to recall its R-Sys front wheels and replace the original carbon spokes with a new and stronger construction.
According to the company, ‘customers appreciated the way this recall was managed, which showed Mavic’s continuous commitment to maintaining its strong brand image.’
Improving the supply chain and maintaining tight control of expenses were key focus areas in 2009. Mavic’s profitability weakened in 2009 due to lower sales volumes and the disruption caused by the R-Sys recall.
On 1 September 2009, Amer Sports announced that it was exploring strategic alternatives in respect of its cycling business and that the review could result in the sale of Mavic.
Amer Sports evaluated several different options and reached the conclusion that the divestment of Mavic would not be in the best interest of shareholders. Instead Amer Sports will concentrate its efforts on further developing its cycling business in 2010 and beyond.
In its Sports Instruments division, Amer Sports’ net sales fell by 5% in local currency terms to €85.8 million. Over the years, wrist top computers and diving instruments have consistently increased their share of Suunto’s total net sales: reaching 80% of total business in 2009.
Net sales of wrist top computers increased in local currency terms by 3% whereas diving instruments fell by 13% year on year. Here, the distribution of net sales by geographical region was: EMEA 56%, the Americas 29% and Asia Pacific 15%.
Suunto’s profitability weakened in 2009. Last year, in a bid to gain the value high ground, Suunto entered the premium sports watch market with the Suunto Elementum collection.
Amer Sports also owns Salomon, Wilson, Precor, Atomic and Arc’Teryx. Overall, sales for the total Amer Sports business fell 4%, from €1.57 billion in 2008 to €1.53 billion in 2009.
