Brunswick Corp., Lake Forest, Illinois, reported $237.6 million in third quarter net sales for its Life Fitness Division, up 20 percent from last year, according to financial earnings released last week. International sales also increased by 23 percent, accounting for 48 percent of the quarter's business.
“[O]ur fitness business continues to benefit from solid demand, particularly in the global health club and hospitality markets," Chairman and CEO Mark Schwabero said in the report. "This foundational core growth, combined with favorable trends in the rehabilitation and active aging category, as well as increased participation in group exercise activities, is providing a healthy marketplace in which to execute our fitness strategy."
Sales to retail and governments reportedly decreased in the quarter. Revenues from Brunswick's $195 million acquisition of Cybex this January have also "trailed our initial expectations," Schwabero said.
"[W]e are continuing to make outstanding progress integrating [Cybex] into our Fitness segment and remain on plan to achieve our near-term and long-term earnings objectives for this acquisition," he said.
Additionally, the company reported a year-to-date increase in operating earnings from $27.6 million to $29.1 million. Strong sales, slightly offset by "an unfavorable impact from sales mix, restructuring and integration costs," contributed to this increase, Schwabero said. Recent acquisitions ultimately helped anchor the quarter's growth. If excluded, the company's fitness sales, on a constant currency basis, increased by 4 percent.
Brunswick's total net sales grew 10 percent this quarter, to $1,093 million.
The increase "reflected the benefits of our acquisition strategy, particularly in our Fitness segment," Schwabero said.
Acquisitions are forecasted to comprise 5 percent of Brunswick's yearly sales growth, according to the report. This is expected to reflect the company's recent transactions, including Cybex and SCIFIT, which the company acquired in July 2015 for an undisclosed amount.