The Fitness Equipment business, which is built on the Precor platform, increased 19.3% to 50.1 million when measured in Euros, but jumped 29.5% to $61.3 million when measured in U.S. dollars. Third quarter EBIT for the division declined 44% to 4.2 million ($5.1 mm) from 7.5 million ($8.5 mm) , due primarily to a 2.5 million ($3.1 mm) settlement payout. Excluding the payout, Q3 EBIT would have down 10.7% when measured in Euros, or off 3.0% in U.S. dollars. EBIT was also impacted slightly by rising steel prices and integration costs of the acquired companies.
Fitness Equipment net sales in local currencies increased 30% in the nine-month YTD period.
Elliptical cross-trainers, treadmills and stationary cycles were said to be the fastest growing product categories for the division. Outside the Americas YTD sales grew by 38%. Sales growth was boosted by the acquisition of FPI and ClubCom Inc. in January of this year.
Third quarter EBIT was 34.4 million, down 45.7% from 62.7 million in Q3 last year, a figure that includes a patent litigation settlement of 20.5 million. Excluding this and other one-time charges for both years, Q3 EBIT would have been roughly flat for the quarter versus last year.
Amer Groups sports equipment net sales are expected to grow 5% for the full year. The sports equipment business EBIT is also expected to grow compared to 2003, excluding the 2003 patent litigation settlement.