The Life Fitness Division of Brunswick Corp., Lake Forest, IL, reported sales of $185.6 million and operating earnings of $25.8 million in the first quarter of 2015.
The figures for Brunswick's fitness segment, which includes Life Fitness and Hammer Strength, were released on Wednesday. The fitness segment sales grew three percent and operating earnings declined 13 percent compared to first quarter 2014.
Brunswick President, Chief Operating Officer and Director Mark D. Schwabero told analysts in a conference call that the sales gain was attributed to higher sales to U.S. health clubs and hospitality customers, as well as sales gains in international markets. Additional sales growth was offset by lower sales to local and federal governments.
The decline in operating earnings resulted from the absence of a favorable warranty adjustment in 2014 and an unfavorable foreign exchange impact, Schwabero said. Life Fitness also incurred costs associated with planned capacity expansion activities and new product introductions.
Life Fitness will continue to develop new products and services that drive market share growth in commercial cardio and strength categories, Schwabero said.
“Recent examples that have led to their share gains include the Explore Console for the Elevation Series, the PowerMill Fighter, Climber, the FlexStrider, the E-Series Cross-Trainers and the multi-purpose synergy family of training systems,” Schwabero told analysts.
Dustan E. McCoy, Brunswick chairman and chief executive officer, told analysts that Life Fitness is targeting revenue growth in the low- to mid-single digit range in 2015 as a result of a stronger U.S. dollar.
“We'll continue to make significant investments of Life Fitness, aggressively leveraging innovation to achieve competitive differentiation and its products and services, which should continue to enable market share growth and create business opportunities beyond its core business model,” McCoy said.
Brunswick reported net sales of $985.7 million in the first quarter, up from $894.9 million a year earlier. Operating earnings were $88.7 million in the first quarter, up $81.9 million from the prior year.