By Thomas J. Ryan
Newell Brands Inc. (NYSE:NWL) reported that its outdoor solutions segment, formerly Jarden Outdoor Solutions, eked out a 0.5 percent organic gain in sales in its second quarter.
Growth in its Pure Fishing business largely offset weather-related declines at winter-sensitive businesses such as K2 Sports, Volkl and Marker, officials said.
Now described on Newell’s website as “the largest hardgoods sporting equipment company in the world,” the segment’s other larger brands include Coleman, Rawlings, AeroBed and Jostens. Pure Fishing’s brands include Abu Garcia, All Star, Berkley, Chub, Fenwick, Gulp!, Hardy, Hodgman, Johnson, JRC, Mitchell, Penn, Pflueger, Sebile, SevenStrand, Shakespeare, SpiderWire, Stren, Trilene and Ugly Stik.
Newell acquired Jarden Corp. in mid-April.
Net sales at the outdoor solutions segment were $953.4 million, up 53.6 percent compared with the prior year, due largely to Jarden Corp.’s acquisition of Jostens last year. Reported operating income at the segment was $55.4 million, reflecting the contribution of Jostens, partially offset by inventory step-up and integration and other costs related to Newell Brand’s acquisition of Jarden in April.
Reported operating margin was 5.8 percent of sales. Year-ago comparisons weren’t provided. Normalized operating income, which excludes restructuring charges and other non-recurring items and currency effects, was $215.7 million, or 22.6 percent of sales, with good Jostens performance in the seasonally important second quarter contributing to segment margins.
Newell is widely expected to sell some of the outdoor solutions segment’s winter sports brands as part of its announced plans to divest product lines with annual sales of $250 million to $300 million over the next two to three years.
The outdoor solutions segment also includes Marmot, Campingaz, Dalbello, ExOfficio, Invicta, Neff, Squadra, Stearns and Zoot.
Photo courtesy of Pure Fishing
