Brunswick Corp.'s Life Fitness Division reported fourth quarter sales growth of 24 percent while its 2016 sales grew by 23 percent, as Cybex became more integrated into the division.
The fourth quarter was Life Fitness' most successful quarter of 2016 to help increase its total year revenue by 23 percent. Parent company Brunswick also reported year-end sales of $4,488.5 million, an increase over $4,105.7 million in 2015. (Photo courtesy Brunswick Corp.)
Brunswick Corp., Lake Forest, Illinois, reported $294.7 million in 2016 fourth quarter net sales and $980.4 million in net sales for all of 2016 for its Life Fitness Division, according to financial earnings released by the company on Thursday.
The fourth quarter sales and full year sales numbers were a 24 percent increase and a 23 percent increase, respectively, from the same periods in 2015.
This is the seventh consecutive year of operating performance improvements, Brunswick Chairman and CEO Mark Schwabero said in the report, particularly praising the fitness division’s acquisition strategy. (Brunswick acquired Cybex in 2016 and SCIFIT in 2015.)
“[O]ur fitness business benefited from solid demand, particularly in overall global commercial fitness markets,” Schwabero said. “This foundational core growth, combined with favorable trends in the rehabilitation and active aging categories, as well as increased participation in group exercise activities, is providing a dynamic marketplace in which to execute our fitness growth strategy.
“We continue to make outstanding progress integrating the Cybex business into our Fitness segment and slightly exceeded our 2016 earnings objective for this acquisition,” he said. “We remain well positioned to meet the long-term earnings objectives for this acquisition.”
In his third quarter report, Schwabero had said that success from the Cybex acquisition had "trailed our initial expectations.” However, in the fourth quarter, success from acquisitions along with growth in international markets helped Life Fitness offset recent “unfavorable changes in sales mix,” the report said. Excluding Cybex, the division’s fourth quarter sales grew by only 4 percent. The division's international sales grew by 21 percent, accounting for 42 percent of the quarter's business, but when excluding Cybex, international sales grew by only 6 percent.
Brunswick’s year-end net sales of $4.49 billion mark an increase from $4.1 billion in 2015.
In 2017, Schwabero anticipates Life Fitness will continue to benefit from growth in global markets, in addition to contributions from new products introduced in the second half of the year.
“As a result, our plan reflects overall revenue growth rates in 2017 in the range of 6 percent to 8 percent, absent any significant changes in global macro-economic conditions,” he said.
Just last week, Life Fitness underwent an executive shakeup when Chris Clawson was replaced as president by Jaime A. Irick formerly of Current, Powered by GE.