For the three months ended 31 March 2005 compared to the three months ended 31 March 2004:
•Net revenues were down 9.5% to $83.6m •Operating loss before restructuring costs increased by $4.6m to a loss of $9.0m •Net loss decreased by $5.2m
Johan Eliasch, Chairman and CEO, commented:
"Q1 has been tough on all of our divisions with a declining diving market in Europe, the later winter season and poor snow in North West US and Italy and a decline in the European Tennis market.
As previously communicated, we see restructuring as an ongoing project and recently announced the decision to outsource 90% of our remaining tennis racquet production from sites in Austria and the Czech Republic to China.
Whilst market condition are tough and additional costs will be incurred as a result of the recently announced tennis restructuring, we believe that we will report a positive operating profit for the full year 2005."