Jarden Corporation has reported a 2.0 percent decline to $670.6 million for its sales in the Outdoor Solutions segment during the third quarter ended Sept. 30, but on organic basis they grew by 4.1 percent. Coleman had good results, thanks in particular to new products in the cooler category and licensed products. In the U.S., total segment sales were stronger in specialty channels and among independent retailers than among the chains.
Operating profit for the segment declined by 6.8 percent to $66.9 million as compared to a year ago. A drop of nearly $8 million in restructuring costs was offset to higher inventory markdowns.
The parent company of Coleman, Shakespeare, K2, Völkl, Marmot and more than 15 other sports brands derived 37.2 percent of its total turnover from the Outdoor Solutions segment. The portfolio was boosted recently by Jarden's acquisition of Hardy & Greys, a well-known British brand of fly fishing rods and reels.
Adding its other segments, the Jarden group recorded total revenues of about $1.8 billion for the quarter, up from $1.7 billion a year ago, and its operating profit increased to $194.3 millin from $168.8 million in the year-ago period.
The adjusted gross margin declined to 29.5 percent for the group from 30.0 percent, and its adjusted net income increased to $117.1 from $104.0 million. Margins are expected to improve in the fourth quarter. The group's overall profitability will be boosted by about $50 million through the sale of its minority stake in Groupe Rossignol during the quarter.
