Brunswick Corp.’s Q2 Fitness Revenues Expand 5 Percent

Brunswick Corp. reported revenues in its Life Fitness segment, comprised of Life Fitness and Hammer Strength, rose 5.2 percent in the second quarter and added 10 percent on a currency-neutral basis.

On a conference call with analysts, Mark Schwabero, president and COO, said the gains reflected growth in the U.S. at health clubs and hospitality customers, as well as sales gains in international markets, particularly Europe and certain developing regions.

Schwabero said the segment continued to benefit from new product introductions in all regions with the quarter, representing its 11th consecutive quarter of year-over-year revenue growth.

“Life Fitness continues to develop new products and services that are resulting in market share growth in the commercial cardio and strength categories,” said Schwabero. “Recent examples that have led to their share gains include the Export Console for the Elevation series, our Power Bill Climber, FlexStrider, our E Series crosstrainers and the multipurpose Synergy family of training systems.”

International sales, which represented 50 percent of total Fitness segment sales in the quarter, increased 4 percent. On a currency-neutral basis, international sales were up 14 percent.

For the quarter, the Fitness segment’s operating earnings reached $23.2 million, a year-over-year gain of 22.1 percent. Operating earnings included benefits from higher sales, partially offset by an unfavorable impact from foreign exchange.

Companywide, Brunswick, which also operates Marine Engine and Boat segments, reported revenues grew 6.4 percent to $1.14 billion. Net earnings climbed 33.0 percent to $117.8 million, or $1.26 a share.

The second quarter of 2014 included $3.1 million of net restructuring, exit and impairment charges. Adjusted operating earnings in the latest quarter increased 9 percent.

Looking ahead, the company kept its guidance for the year given in January despite greater-than-expected foreign currency headwinds. Dusty McCoy, Brunswick's chairman and CEO, said, “This speaks to the strong performance of our recently introduced products in all of our business segments, along with cost reduction activities.”