Rossignol 1st-Half Snowboard Sales Rise 17.5% While Skis Drop 16.4%

11/12/98

Paris, Nov. 12 -- Skis Rossignol SA, a French maker of winter sports equipment, said first-half sales of snowboards rose 17.5 percent to 65.53 million francs, while ski sales for the period fell 16.4 percent as a decline in Asia and canceled orders in east Europe combined with stagnant demand in Europe and the U.S.

The company, which also makes golf clubs and in-line skates, said sales fell to 937.51 million French francs ($165 million) in the period from April 1 to Sept. 30, compared with 1.12 billion French francs in the same period last year.

Slowing demand in Asia, which accounts for more than one- third of the ski industry's sales, has hurt Rossignol and others as consumers switch from traditional ski ware to alternatives, such as snowboards, and cut back on ski trips.

``The decline in sales in Japan and Korea, canceled orders from East European countries as well as the delay in certain deliveries, combined with the lack of improvement in demand in Europe and the U.S., accounts in large part for the drop in sales,'' the company said in a statement.

New products in the second half should allow it to reduce the sales decline ``very significantly,'' Rossignol said. A reorganization of inventory and the prospect of an improvement in consumer spending should also help, it said.

First-half sales of winter sports goods fell 25.3 percent to 752.206 million francs, though snowboard sales rose 17.5 percent to 65.53 million francs. The company said it should be able to maintain a rate of growth in snowboard sales of 15 to 20 percent a year thanks to low-cost production in Spain.

Skis Rossignol's shares fell 3.5 francs to 83.5. The sales figures were released after the market closed.

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