The acquisition of Cybex and ICG allowed Brunswick Corp., parent company of Life Fitness, to boost the sales of its fitness segment by 20.3 percent to $237.0 million in the third quarter, but excluding its takeover, the segment's revenues grew by only 4 percent in terms of constant currencies.
Outside the U.S., fitness segment sales went up by higher rates of 23 percent in dollars and by 24 percent in local currencies, led by Europe and the Asia-Pacific region, because of Cybex's strong international presence, representing 48 percent of the whole business. The management pointed out that its recently expanded European manufacturing facilities will allow the company to better respond to the local demand in the sector and to capitalize on global opportunities.
Still, the overall turnover of the segment was lower than expected because of changes in Cybex's distribution strategy and lower demand for certain products.
The segment's operating margin fell by 1.8 percentage points to 12.2 percent, but the management predicts that it will recover to historical levels in due time.
Brunswick's total sales grew by 10.2 percent to $1.09 billion in the quarter, below internal expectations. Net earnings rose by 18.5 percent to $85.3 million.