Brunswick Corporation reported net sales of $1.10 billion for the second quarter ended July 2, up 8.0 percent from sales of $1.015 billion in the year-ago period.
Operating earnings were up nearly two-fold to $107.9 million, including a gain from restructuring activities of $300,000, primarily resulting from the sale of certain idled marine properties.
Net earnings for the quarter were $69.3 million, or 75 cents per diluted share, compared with net earnings of $13.7 million, or 15 cents per diluted share for the year-ago period. This included 2 cents per diluted share benefit from special tax items.
By segment, the Marine Engine segment, which consists of the Mercury Marine Group, including the marine parts and accessories businesses, reported net sales of $618.5 in the quarter, up 7.7 percent from $579.2 million in the year-ago period.
For the quarter, the Marine Engine segment reported operating earnings of $95.5 million, which included a gain from restructuring activities of $300,000, primarily related to the sale of certain idled properties. This compares with operating earnings of $89.2 million in the second quarter of 2010.
The company said the segments domestic outboard engine product category experienced the greatest percentage sales growth during the quarter while higher sales and cost reductions had a positive effect on operating earnings during the quarter.
For the Boat segment, which is comprised of the Brunswick Boat Group and includes 16 boat brands, net sales were $326.7 million, up 10 percent compared with $296.6 million in the year-ago period. Operating earnings were $9.4 million compared with an operating loss of $23.6 million in the year-ago period.
Management said Boat segment production and wholesale shipments increased during the quarter due to solid retail demand and market share gains among Brunswick boat brands. Revenue growth resulted from an increase in wholesale unit shipments, partially offset by the effect of a slightly greater mix of smaller boat sales. Higher sales, lower restructuring, exit and impairment charges, increased fixed-cost absorption, and fixed-cost reductions all had a positive effect on the segment`s improved quarterly results.
For the Fitness segment, which is comprised of the Life Fitness Division sales for the second quarter were $141.6 million, up 14.9 percent, up from $123.2 million in the year-ago period. Operating earnings were $19.1 million compared to operating earnings of $8.7 million in the second quarter of 2010.
For the Bowling & Billiards segment, which is comprised of Brunswick retail bowling centers, bowling equipment and products and billiards tables and accessories, sales were $77.5 million, up slightly compared with $77.3 million in the year-ago quarter. Operating earnings were $1.5 million compared to an operating loss of $2.6 million.
For the quarter, equivalent-center sales for retail bowling were up by a low-single-digit percentage, while bowling products experienced a slight decline in sales.