The Outdoor Solutions segment of Jarden Corporation recorded a sales increase of only 0.5 percent to $617.9 million for the fourth quarter of 2012, ended on Dec. 31, but its operating profit (Ebit) rose by 5.3 percent to $41.2 million. Excluding restructuring costs, depreciation and amortization, the segment's operating earnings went up by 9.4 percent to $61.7 million.
The group's chief executive, Jim Lillie, indicated that the snow sports business, represented by brands such as K2, Marker and Völkl, went down during the quarter, while the group's Pure Fishing unit performed strongly, thanks in particular to higher-than-expected sales of new fishing rods and reels under the Abu Garcia and Shakespeare brands.
Including other segments, the group's total sales reached $1.82 billion for the quarter, up by 3.5 percent on a comparable basis year-on-year, and they delivered an improved gross margin of 27.9 percent, 1.3 percentage points above the year-earlier level. The group's net income went up by 130 percent to $48.7 million.
For the full financial year, group sales grew marginally to $6,696.1 million from $6,679.9 million in 2011, and the group's net profit went up to $243.9 million from $204.7 million on a reported basis, and to $328.7 million from $303.6 million on an adjusted basis.
No breakdown was offered for the Outdoor Solutions segment. However, the management indicated that while sales fell by between 5 and 10 percent for the year in the snow sports sector, the technical apparel segment, represented by Marmot, ExOfficio and Zoot, generated double-digit growth. New products such as Marmot's top-selling Precip jacket were largely responsible for the growth.
Other brands grouped into Jarden's Outdoor Solutions segment are Berkley, Campingaz, Coleman, Fenwick, Mitchell, Penn, Rawlings, Stearns and others. With a turnover of more than $2.7 billion, the segment represents about 41 percent of Jarden's total revenues. The biggest single brand is Coleman, with sales of around $750 million a year.
Soon after reporting on its results, Jarden announced that its board of directors had approved a 3-for-2 split of its outstanding shares. Stockholders of record at the close of business on Feb. 25 will receive one additional share of Jarden common stock for every two shares of Jarden common stock owned on that date. After the split, the company will have about 117.9 million shares of common stock outstanding.