Brunswick Corp. (NYSE:BC) reported sales in its Life Fitness Division grew 4.5 percent in the third quarter, to $197.5 million, and advanced 9 percent on a currency-neutral basis.
The increase reflected growth in the U.S. at health clubs and local and federal governments, said Mark Schwabero, president and COO, on a conference call with analysts. Revenues gains internationally were led by its Europe and the Asia-Pacific regions.
International sales, which represented 47 percent of total segment sales in the quarter, decreased 4 percent, but added 4 percent on a currency-neutral basis.
The top-line gain reflected sales from the July acquisition of SCIFIT, which focuses on exercise equipment tailored to the needs of active aging seniors. SCIFIT contributed about 3 percent to the segment’s growth rate in the quarter. The segment also includes Life Fitness and Hammer Strength fitness equipment; Brunswick billiards tables, accessories and game room furniture; and InMovement well-being products.
Said Schwabero overall, “The segment continues to benefit from new product introductions in all regions with this quarter representing its 12th consecutive quarter of year over year revenue growth.”
Operating earnings in the Life Fitness Division grew 7 percent to $27.6 million. The increase reflects benefits from higher sales, cost reductions and savings related to sourcing initiatives, partially offset by an unfavorable impact from foreign exchange.
Companywide, Brunswick Corp. which also owns recreational boat and marine engine businesses, saw earnings from continuing operations climb 18.4 percent to $72.2 million, or 77 cents a share. Continuing earnings exclude results from its former Retail Bowling and Bowling Products businesses, sold in September 2014 and May 2015, respectively.
Net earnings slumped 27.3 percent to $75.9 million, or 81 cents a share. Sales rose 6.4 percent to $991.9 million and advanced 11 percent on a currency-neutral basis.
