Sporting goods company Head swings back to profit in 2005
23 Feb '06
4 min read
Other revenues include amounts billed to customers for shipping and handling. These amounts are recognized also as selling and marketing expense.
Sales deductions for the three months ended December 31st 2005 decreased by $1.2 million, or 24.1 percent, to $3.7 million from $4.9 million in the comparable 2004 period. For the twelve months ended December 31st 2005, sales deductions decreased by $1.0 million, or 8.2 percent, to $11.1 million from $12.1 million in 2004 mainly due to declining revenues.
Gross Profit for the three months ended December 31st 2005, decreased by $3.7 million to $56.9 million from $60.6 million in the comparable 2004 period. Gross margin increased to 36.9 percent for the three months ended December 31st 2005 from 35.0 percent in the comparable 2004 period.
For the twelve months ended December 31st 2005, gross profit increased by $1.7 million to $174.4 million from $172.7 million in 2004 due to improved operating performance as a result of the company's restructuring programs which positively affected manufacturing cost, as well as more favorable product mix. Gross margin increased to 39.0 percent for the twelve months ended December 31st 2005 from 37.0 percent in the comparable 2004 period.
Head NV - The group's principal activity is to design and manufacture sports goods in the field of skiing, tennis, squash and diving.
The company produces the following brand names: Head (alpine skis and boots, snow board equipment, athletic footwear as well as tennis and squash racquets); Tyrolia (ski bindings); Penn (tennis and squash balls); Mares and Dacor (diving equipment). It is based in the Netherlands and has production facilities in Austria, Germany, France, Italy, Spain, Switzerland, Ireland, Czech Republic, Estonia, USA, Canada and Japan.
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