Brunswick Corp. has announced sales in its fitness segment of $294.7 million in its fourth quarter, which represent a 24 percent increase from a year ago. International sales accounted for 42 percent of the segment sales in the quarter. On a currency-neutral basis, fitness sales grew by 25 percent.
The segment's sales grew by 4 percent excluding acquisitions. Brunswick acquired Cybex International, a maker of commercial fitness equipment, in January 2016, followed by the takeover of the Indoor Cycling Group last summer. A year earlier, in January 2015, Brunswick acquired Scifit Systems, specializing in fitness equipment for active aging seniors, medical wellness and the rehabilitation market. Brunswick's fitness segment also includes Life Fitness and Hammer Strength, InMovement, and Brunswick's billiards business.
For the full year 2016, sales in the fitness segment increased by 5 percent on a currency-neutral basis, excluding acquisitions. The company said its 2016 results reflected solid growth in the U.S. and a strong growth rate in Europe. The two regions together account for nearly three-quarters of the segment's sales. Europe benefited from recent investments in manufacturing capacity, the company said. Asia-Pacific, the third largest region, posted strong sales improvements in the year thanks to the combination of market growth and share gains in both China and Japan. In emerging markets, demand was lower, although trends improved throughout the year as the impacts of currency devaluations and commodity markets decreased.
In 2017, Brunswick plans to incur between $11 million and $13 million of restructuring and integration costs associated with the fitness segment, including costs related to the recent management transition. On Jan. 18, Jaime A. Irick was appointed president of the fitness division. Irick replaced Christopher Clawson, president of Life Fitness, who left the company.
For 2017, the company expects high single-digit revenue growth for the fitness segment. Growth is expected to come from continued growth overall in the global commercial fitness market, as well as contributions from new products, especially in the second half of the year.
