A different price mix and higher commodity costs drove the operating margin before amortization (Ebitda) of Jarden Corporation's Outdoor Solutions segment down to 7.9 percent from 9.7 percent in the 4th quarter of 2010, but this was before extraordinary items. As acquisition and integration costs were down to $7.4 million from $29.2 million in the year-earlier period, the segment's actual profit contribution increased seven times over to $22.4 million in the quarter.
The turnover of the segment grew in the quarter by 13 percent to $584 million on an organic and currency-neutral basis, excluding divestitures and acquisitions. Adding up $16 million from the sale of JT Sports and the licensing of the Adio business, $27 million in sales from the acquisition of Aero Products and $7 million from favourable currency exchange rates, total revenues from Outdoor Solutions actually went up by 14.4 percent to $604 million. Sales continued to improve in Canada and Europe.
Fueled by favorable weather conditions, Marmot performed 30 percent better than a year earlier in the quarter. The group's winter equipment brands - K2, Marker and Völkl – are left with very little inventory for similar reasons. Coleman had a profitable final quarter.
For the full financial year, the Outdoor Solutions unit reported an 8 percent improvement in operating profit before extraordinary items to $300.9 million on 8.9 percent higher revenues of $2,518.7 million. On an organic basis, segment revenues rose by 7 percent to $2,478 million. The net profit contribution of the segment improved by 41.5 percent to $228.6 million.
Adding the other segments of the group's business, total revenues increased by 7 percent for the year and for the quarter on an organic basis, about twice better than previously budgeted. On an absolute basis, Jarden's group sales jumped by 17 percent to $6.0 billion, but the net profit went down to $107 million from $129 million.
In an aside, Jarden's management noted that Rossignol “has turned the corner quite substantially,” helping to recoup Jarden's initial equity investment in the company. As previously reported, Jarden is proposing now to raise its stake in Rossignol to 47 percent from 17 percent, with the Australian Macquarie investment fund dropped its own from 77 percent to 47 percent. The proposed transactions are awaiting formal approval from European anti-trust authorities.
