With a large tax break, the parent company of Life Fitness, Brunswick Corporation, watched its net income jump by 50 percent to $88.3 million in the 4th quarter, ended Dec. 31. Total group sales rose by 12 percent to $1,489.5 million.
In the same period, the Life Fitness division improved its operating income by 24 percent to $30.6 million, representing a climb by 310 basis points to 17.4 percent in the operating margin, due apparently to the expansion of its production facilities in Hungary in the course of 2005. The division’s revenues increased by 2 percent to $176.0 million. The bowling and billiards segment did not perform as well, and registered a drop by 24 percent to $15.2 million, despite a growth of 5 percent in revenues to $126.2 million.
For the full year, the Life Fitness division recorded a 1 percent drop in sales to $551.3 million, but its operating income rose by 25 percent to $56.3 million, which represents a growth in the operating margin of 210 basis points to 10.2 percent. Brunswick’s bowling and billiards division saw its operating income fall by 11 percent to $37.2 million on the year, due to costs related to moving bowling ball production to Mexico, but its revenues grew by 5 percent to $464.5 million.
