Brunswick Corp., Lake Forest, Illinois, reported $250.5 million in 2017 second quarter net sales for its Life Fitness Division, which includes Life Fitness and Cybex International, according to financial earnings released by the company on July 27. This marks a 9 percent increase year-over-year.
Life Fitness’ international sales, which represent 48 percent of all sales for the quarter, increased by 17 percent. This follows 11 percent growth in the year's first quarter. Executives have, in part, attributed this growth to success in the company's Asian-Pacific market.
On a constant currency basis, Life Fitness’ sales also grew 6 percent year-over-year.
"Our Fitness business continues to successfully execute against its integration and transformation plans, which in 2017 include new product introductions, changes to the manufacturing footprint and further cost realignment actions,” Brunswick Chairman and CEO Mark Schwabero said in the report. “The benefits from these activities will begin to favorably impact the segment's growth rates and margin performance in the second half of 2017 and beyond.”
The fitness segment’s operating earnings dropped to $18.5 million this quarter, versus $24.1 million in the second quarter of 2016. The decrease was primarily attributed to “unfavorable margin impacts from changes in sales mix; planned costs associated with capacity expansions, new product introductions and manufacturing facility transitions; the net unfavorable impacts of non-recurring adjustments between periods and foreign exchange,” the report said.
Looking forward, Schwabero expects continued international success and contributions from new products will drive revenue in the second half of 2017.
Life Fitness completed a 150,000-square-foot expansion project at its Cybex facility in Owatonna, Minnesota, earlier this year. While the expansion added 100 new jobs to the Owatonna area, the company later cut six salaried positions in May as part of a larger restructuring effort.