The $253 million non-cash charge at K2 was by far thebiggest factor in causing an 11% decline in industry profits for the finalquarter of 2005 ended nearest to Dec. 31; however, it’s pretty clear that thefinal period did show a minor slowdown in the profit momentum the industry hadenjoyed for the last 13 quarters, when reported GAAP profits averaged a 36%increase. Even if K2 results are excluded from the table, industry profits wereup 10%, well below the pace of recent quarters.

Our quarterly review of public company profits isexpanded to include the operating results of some key divisions of largercompanies. While ... Log in to view full article.