Sales declined by 8.7 percent to $624.9 million in the Outdoor Solutions segment of Jarden Corp., due for the most part to a drop of nearly 8 percent in the value of the euro and other major currencies against the dollar. Another reason was a delay in shipments of fishing gear owing to the strikes at U.S. West Coast ports.
The segment includes Dalbello, K2, Völkl, Marker, Ride, Marmot, Coleman, Rawlings, Shakespeare, Zoot and many other brands. Sales of winter products were up organically in spite of poor weather conditions in the U.S., a late start of the winter season in Europe and tight inventories prompted by a shift in the production of skis to a new factory in China that is already manufacturing snowboards for the group.
The segment's operating earnings fell by 47.4 percent to $19.1 million. Excluding acquisition costs, depreciation, amortization and other items, they declined by 26.9 percent to $40.4 million.
Across the group, sales were nearly flat at $1.73 billion for the quarter, but they were up by 4.7 percent on an organic, currency-neutral basis. Adjusted net income declined to $11.0 million from $25.7 million a year ago.
Jarden's management is still projecting organic sales growth of at least 3 percent in Outdoor Solutions for the full year.