A jump in Life Fitness and Hammer Strength equipment sales led the way for parent company Brunswick (NYSE:BC) to report positive earnings and profit for the third quarter 2011.
A 14-percent revenue increase for Brunswick’s fitness group to $157.2 million in the third quarter, versus $137.7 million a year ago, outpaced companywide revenue growth of 8 percent to $876.7 million. Company officials said its fitness sales were strong in the United States, while international sales dropped 1 percent.
Fitness operating profits shined, rising 33 percent to $22.6 million for the third quarter, compared to an operating net income of $17 million a year ago. Companywide, Brunswick’s quarterly net income swung to a profit coming in at $4.7 million, or $0.05 per diluted share, compared with a net loss of $7.2 million, or a loss of $0.08 per diluted share, a year ago.
"Our Life Fitness segment continued its outstanding performance during 2011 by generating significant growth in the quarter,” Brunswick Chairman and CEO Dustan McCoy said in the company’s earnings release Oct. 27. Year-to-date through the third quarter 2011, Brunwick’s fitness group revenue is up 20 percent to $455.2 million, accounting for about 15 percent of companywide sales.
Precor sales up globally, down in North America
Precor parent company Amer Sports (HEL:AMEAS) reported higher revenue and profit for third quarter 2011, helped by a rise in its global fitness sales, despite a slight drop in its North American sales.
Amer’s fitness group, which is primarily made up of its Precor brand, saw third-quarter revenue rise to EUR $56.8 million (USD $80.5 million) – up 8 percent from the same period a year ago. The fitness sales boost came from Amer’s European and Asian markets, while North American sales fell 2 percent to EUR 34.5 million (USD $48.9 million).
“The North American commercial fitness market has continued to improve in 2011 while the soft economy has continued to plague the consumer business,” Amer officials said in the company’s earnings release Oct. 27.
As reported by SNEWS, Precor recently rolled out a new retail pricing and distribution strategy in the United States to try and raise consumer sales here. Fitness accounts for about 15 percent of Amer’s total sales.
Companywide, Finland-based Amer reported its third-quarter revenue up 20 percent to EUR 559.2 million (USD $792.4 million), in large thanks to earlier deliveries of its wintersports equipment and apparel. The company’s quarterly net income increased 16.7 percent to EUR 53.3 million (USD $75.5 million)
(Conversion of Euro into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Oct. 27, 2011.)
– Compiled by David Clucas
For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/stockreport