K2 posts sales increase in Q3

For the third year in a row, K2 (NYSE: KTO) reported a year over year quarterly increase in the company’s earnings per share. Net sales for the 2002 third quarter increased to $149.8 million compared with $148.1 million in 2001. Net income rose to $3.9 million, contrasted to a loss of $10.7 million a year ago. Diluted earnings per share for the current third quarter totaled 21 cents, up from a loss of 59 cents in the prior year. The 2001 third quarter earnings per share was 6 cents before certain charges for restructuring and downsizing totaling $11.7 million after tax, or 65 cents per share. For the nine months ended Sept. 30, 2002, net sales totaled $454.5 million, down from $462.7 million reported in the same period in 2001. Net income, however, increased to $11.5 million compared with a loss of $5.2 million a year ago. Diluted earnings per share increased to 64 cents, up from a loss of 29 cents in the prior year’s nine-month period, or a profit of 36 cents per share before the charges for restructuring and downsizing described above. K2 said in a statement that the main contributors to its sales increase were the Shakespeare fishing tackle business and Stearns outdoor products and life vest business — thanks in part to new client, the U.S. Navy.