Brunswick Corporation looked to acquisitions in its Boat division to post a 22.7% increase in revenues to $1.33 billion for the fourth quarter from $1.09 billion in Q4 last year. Operating earnings got a double-digit boost from the Marine Engine, Boat, and Bowling & Billiards divisions. Net income increased 47.4% to $58.8 million, or 59 cents per diluted share, for the fourth quarter of 2004, compared to net earnings of $39.9 million, or 43 cents per diluted share, for the year-ago quarter.
The Fitness Segment, which includes the Life Fitness, Hammer Strength and ParaBody fitness equipment brands and operates the Omni Fitness retail stores, saw sales increase 10.2% in Q4 to reach $173.2 million, versus $157.2 million in the year-ago period, Operating earnings declined 12.7% for the period to $24.7 million compared with $28.3 million in the fourth quarter of 2003. Management said that Life Fitness saw a sales mix shift to lower margin strength equipment and took a hit from higher steel prices. However, they also said Life Fitness is “beginning to see the results of cost cutting measures and other productivity improvements” enacted to mitigate operating margin pressure.
The Bowling & Billiards Segment, which includes results from the Brunswick retail bowling centers and bowling equipment, as well as billiards, Air Hockey and foosball tables, saw fourth quarter sales increase 3.5% to $119.8 million, compared with $115.7 million in the year-ago quarter. Operating earnings jumped 31.6% to $20.0 million in Q4 versus $15.2 million in Q4 2003.
Top-line growth for the year was driven by double-digit sales gains in bowling products. The full-year improvement in operating earnings was said to be attributable to “cost reduction and supply chain programs along with the benefit of higher sales volumes.”
