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Life Fitness' Net Sales Up 10 Percent in 2007

Lake Forest, IL — Life Fitness' 2007 net sales were up 10 percent from 2006. In 2007, the company reported net sales of $653.7 million, up from $593.1 million in 2006.

Brunswick Corp., which manufactures and sells Life Fitness, Hammer Strength and ParaBody fitness equipment, released its 2007 financial report last month.

“Life Fitness capped off a very successful year with solid growth in both sales and operating earnings during the fourth quarter of 2007, seasonally the unit's strongest quarter of the year,” Dustan McCoy, Brunswick chairman and CEO, said in a statement. “New products in both the consumer and commercial segments helped spur sales momentum during the quarter as well as the year. For 2007, operating earnings and operating margins at Life Fitness were under pressure due to higher spending for marketing and research and development to support new product introductions, the shift in our mix to lower-margin strength equipment, and competitive pricing in international markets.”

Life Fitness' operating earnings also increased in 2007, going from $57.8 million in 2006 to $59.7 million in 2007. Operating margins were 9.1 percent in 2007 compared with 9.7 percent a year ago.

Net sales were also up when comparing fourth quarter 2007 to fourth quarter 2006. Segment net sales in the fourth quarter of 2007 totaled $214.5 million, up 11 percent from $192.8 million in the fourth quarter 2006. Operating earnings increased 12 percent to $32.4 million from $28.9 million in fourth quarter 2006, and operating margins were 15.1 percent, up from 15 percent in the fourth quarter of 2006.

Despite Life Fitness' sales, 2008 may be a difficult year, McCoy said in a conference call with analysts. He cited the uncertain economy as a top concern, especially for Brunswick's marine products that are facing weak retail demand.

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