The fitness segment of Brunswick Corp., Lake Forest, IL, which is comprised of Life Fitness and Hammer Strength equipment, had an increase in sales but a decrease in operating earnings in second quarter 2014.
According to financials announced last week by Brunswick Corp., second quarter 2014 fitness segment sales totaled $159.7 million, a 6 percent increase from $150.8 million in second quarter 2013. International sales, which represented 51 percent of total segment sales in the quarter, decreased by 3 percent.
The fitness segment also reported operating earnings of $18.7 million in second quarter 2014, a 10 percent decrease from $20.8 million in second quarter 2013.
The increase in sales reflected growth to U.S. health clubs, as well as modest net gains in international markets, Brunswick said. The decrease in operating earnings in second quarter 2014—compared to second quarter 2013—reflected the benefit from higher sales, which was offset by investments in growth initiatives, the company added.
"Our fitness segment continues to benefit from favorable health and fitness trends in the U.S. market," Brunswick Chairman and CEO Dustan E. McCoy said in a statement. "Outside of the U.S., demand trends have been mixed, with slight overall growth thus far during the year. During the second half of the year, we expect that our marine and fitness businesses will benefit from several new products being introduced into the marketplace or reaching full production rates. Market acceptance of these products has been excellent, and as a result, our plan reflects stronger revenue growth rates in the second half of 2014."
As a company, Brunswick sales increased by 4 percent in second quarter 2014 ($1.14 billion) compared to second quarter 2013 ($1.1 billion). The company had operating earnings of $141.3 million in second quarter 2014, a 3 percent increase over operating earnings of $136.7 million in the same period last year.