LAKE FOREST, IL -- Life Fitness and Hammer Strength sales in second quarter 2010 increased by 17 percent compared to second quarter 2009, according to financials released today by Brunswick Corp., whose fitness segment includes Life Fitness and Hammer Strength.
Sales for the fitness segment totaled $123.2 million, compared to $105 million in second quarter 2009.
â€śInternational sales were the primary contributor to the overall growth,â€ť Dustan McCoy, chairman and CEO, said in a call with analysts and shareholders. International sales comprise 54 percent of total segment sales in the quarter. Those sales increased by 39 percent.
For the quarter, the fitness segment reported operating earnings of $8.7 million, including restructuring charges of $0.1 million. This compares with operating earnings of $0.2 million in the second quarter of 2009, which included restructuring charges of $0.2 million.
The higher operating earnings reflect higher sales, a more favorable product sales mix, lower material and freight costs and other operating efficiencies, McCoy said.
Brunswick Corp.â€™s net sales for second quarter 2010 was $1 billion, an increase of 41 percent compared to the same period in 2009. Net earnings were $13.7 million and operating earnings were $55.7 million, an increase of $201.1 million from last year.
Brunswickâ€™s main business is boat sales, which have taken a hit in the past two years.
â€śThe consumer remains very reluctant to spend in this category,â€ť McCoy said. The companyâ€™s saltwater fishing brand also was affected by the oil spill in the Gulf of Mexico three months ago, but the companyâ€™s sale of its Triton Boats to Fishing Holdings LLC, which was announced today, should lessen the effect of that spill on the company, McCoy said.
The companyâ€™s stock price rose to $16 a few hours after the release of the quarterly results. It had closed at $14.56 on Wednesday.