Atlas Snow Shoe & Tubbs Snowshoes Parent Company K2 Inc Reports First Quarter Decrease in Profits

Tubbs Snowshoes and Atlas Snow Shoe parent company, K2 Inc., recently reported a decrease in first quarter profits, with significant losses in the action sports segment. Sales in the first quarter rose 15% according to company officials. A profit of $10 million was reported, or 5 cents per share, compared with $19.5 million, or 27 cents per share, for the same period in 2004. Sales were $318.3 million, compared with $277.4 million for 2004.

K2 Inc. company officials also reported gains in apparel and footwear but were offset by sliding sales in action sports gear, which include snowshoes skis, snowboards, bikes, in-line skates and paintball products. "First quarter results are not directly comparable to last year due to the acquisitions of Volkl, Marker and Marmot completed midyear 2004," K2 Inc. CEO Dick Heckmann stated. "These seasonal businesses incur losses in the first half of the year."