During the second quarter, organic sales went up by 0.5 percent in the outdoor solutions segment of Newell Brands, most of which formerly belonged to Jarden Corp. Higher sales at Pure Fishing offset weather-related declines at winter sports brands such as K2, Völkl and Marker.
Last year's acquisitions of Jostens by Jarden helped to push the segment's total revenues up by 53.6 percent to $953.4 million for the period. They generated an operating margin of 5.8 percent, or 22.6 percent excluding restructuring charges, non-recurring items and foreign currency effects.
Following its merger with Jarden, which was completed in the spring, Newell's sales reached $3.86 billion in the quarter, including $2.22 billion from Jarden. They were up by 147 percent from the same quarter a year ago, when the company consisted of Newell Rubbermaid only. Sales of core Newell products advanced by 5 percent.
The gross margin of the group declined to 28.4 percent, down from 39.8 percent, chiefly because of an inventory charge related to acquisitions. Net earnings fell to $135.2 million from $148.5 million in the year-ago period.
The management said it was making good progress with the integration of Jarden, while conducting a strategic analysis of its portfolio, which may lead to determine how much of the sports business it will retain in the future.