The Outdoor Solutions segment of Jarden Corporation, which includes brands such as Coleman, K2, Marmot and Rawlings, posted a 3.7 percent sales increase to $695 million for the first quarter of this year. On an organic basis, excluding the impact of foreign exchange fluctuations, acquisitions and divestitures, sales went up by 4.9 percent to $703 million.
The management told investors that positive developments were registered in camping and fishing, in spite of strong comparable figures in the same period a year ago. The cold weather instead caused Rawlings to lose a reorder cycle for its baseball business.
The profit margin of the Outdoor Solutions division declined to 10.2 percent from 10.7 percent in the same period a year ago, However, companywide, the group is upgrading its outlook for its adjusted profit for the full year, predicting that it will range between $344 million and $349.5 million on an organic sales increase of between 3 and 5 percent.
The company's total sales grew by 5.3 percent to $1.58 billion during the quarter, but they generated operating earnings of only $56.9 million, down from $101.6 million in the same period a year ago. Jarden ended up with a quarterly loss of $4.4 million against profit of $35.1 million a year ago, due to acquisition-related accounting charges and a provision for the devaluation of the Venezuelan currency.
The company is not expecting any major progress for K2 and the rest of its winter sports business, but notes that this category represents only about 4 percent of its total sales.