Brunswick reports 1Q resultsPosted on
Brunswick Corp. said today that it saw first-quarter net sales increase by 8.4 percent to $1.16 billion from $1.07 billion last year.
The company reported operating earnings of $89 million for the quarter that ended April 1, which included $15.2 million of restructuring, exit and integration charges.
In the first quarter last year Brunswick had operating earnings of $96 million, which the company said included $3.8 million of restructuring, exit and integration charges.
“Our performance in the first quarter reflected continued successful execution of our growth strategy, including our focus on product leadership and the associated market share gains,” Brunswick Corp. CEO Mark Schwabero said in a statement.
The company is increasing its full-year guidance for diluted earnings per share from $3.90 to $4.05 to a range of $3.95 to $4.10.
“Although it is still early in the marine season, initial marine market data indicates a healthy U.S. marketplace, which is consistent with our assumptions entering the year,” Schwabero said. “Overall demand in non-U.S. marine markets was also strong, led by gains in Europe and improving conditions in other regions.”
Brunswick reported first-quarter net earnings of $64.9 million, or 71 cents a diluted share, compared with $63.2 million, or 68 cents a share, for the quarter last year.
The marine engine segment reported first-quarter net sales of $631.8 million, up 6 percent from $595.5 million in the quarter last year. Gains came from the parts and accessories business and outboards, partially offset by declines in the sterndrive engine business.
International sales, which represented 31 percent of total segment sales in the quarter, were up 9 percent from the prior-year period. The engine segment reported operating earnings of $88.5 million, compared with $78.3 million last year.
The 15 brands that make up Brunswick’s boat group reported net sales of $382.7 million for the quarter, up 14 percent from $336.8 million last year.
International sales, which represented 24 percent of total segment sales for the quarter, increased by 9 percent from the prior-year period. The boat segment had operating earnings of $3.2 million, which included $10.4 million of restructuring, exit and integration charges, compared with operating earnings of $16.4 million in the quarter last year.
The boat segment’s revenue reflected strong growth in the fiberglass and aluminum outboard categories. Sales in the fiberglass sterndrive/inboard boat category increased in spite of anticipated declines in large fiberglass sterndrive/inboard boats.
The decline in operating earnings included higher restructuring, exit and integration charges.
Comparisons also were affected by the reduction in sales volumes and unfavorable reserve adjustments in large fiberglass sterndrive/ inboard boats, along with the net unfavorable impact of changes in the sales mix and higher commodity costs in the company’s aluminum boat business. These factors more than offset favorable performance in the fiberglass outboard boat business.
Brunswick’s 2017 outlook remains consistent with its three-year strategic plan, Schwabero said.
“We expect our marine businesses’ top-line performance will benefit from the continuation of solid market growth in the U.S. and Europe and the success of our new products,” Schwabero said.