Represented by Life Fitness, Cybex International and other properties, the fitness division of Brunswick Corp. saw its sales advance by 8 percent to $235.6 million in the first quarter of this year, but they were up by only one percent on a currency-neutral basis.
Segment sales outside the U.S. were up by 11 percent, representing 46 percent of the fitness turnover, thanks to growth in the Asia-Pacific region and the benefits of Brunswick's acquisition last summer of Germany's Indoor Cycling Group (ICG). Sales were down in the U.S. on a comparable basis because of anticipated declines at Cybex.
The operating margin of the fitness division fell to 7.8 percent from 9.2 percent in the year-ago period. The main factors were changes in the sales mix and planned costs associated with capacity expansions, new product introductions and changes in the manufacturing apparatus.
Now that Cybex' back office functions have been integrated, Brunswick will work this year on reorganizing the manufacturing of fitness equipment for both Cybex and Life Fitness.
The outlook is positive in view of the release of new products, especially in the second half of this year, and the global growth of the commercial fitness market.
The total consolidated sales of the group rose by 8.4 percent as compared to one year ago to $1,160.3 million, with an increase of 5.9 percent excluding acquisitions. The operating margin declined to 7.7 percent from 9.0 percent. Net earnings of $64.9 million were slightly up from $63.2 million.
