Skip to main content

Brunswick Posts Record Profit, Lower Margins

Screen Shot 2022-07-28 at 1.08.18 PM

Brunswick Corp. reported higher second-quarter revenue and profit, posting its first-ever quarter with $300 million of adjusted earnings while benefiting from higher prices.

Sales jumped 18.1 percent to $1.84 billion in the quarter, compared with the second quarter of 2021, the Mettawa, Ill.-based conglomerate said in an earnings statement yesterday. Operating earnings were $279 million, an increase of 11 percent versus the year-earlier quarter. Adjusted operating earnings totaled $300.2 million.

Operating margin narrowed to 15.2 percent from 16.4 percent in last year’s second quarter. Brunswick CEO David Foulkes emphasized that the company is focusing on cost control and operating efficiency while still investing in new capacity.

The quarterly results “continued our trend of exceptional performance in a challenging macro-economic landscape,” Foulkes said in the earnings statement.

“Consumer demand for our products remained strong as we worked through a period of tougher year-over-year retail comparisons versus a particularly strong first half of 2021, while being impacted by continued low field inventory and some enduring supply-chain disruptions,” Foulkes said.

He said global boat field inventory levels were 55 percent lower at the end of the second quarter versus the same time in 2019, prepandemic. Inventories in the saltwater fish and fiberglass categories, in particular, stand at historic lows, with “substantial backlogs” of orders at the retail level.

Brunswick said it narrowed its full-year, non-GAAP guidance while continuing to envision low inventory levels and strong boating participation.

“Despite external headwinds, including increasingly unfavorable foreign currency exchange rates, inflation and remaining supply chain and freight disruptions, we continue to have good visibility on our ability to drive growth,” the company said, resulting in updated guidance for full-year net sales of between $6.9 billion and $7.1 billion. Adjusted diluted earnings per share is now forecast at $10 to $10.30.

Brunswick said third-quarter revenue will grow in the “mid-20s percent” compared with the third quarter of 2021, with expected per-share earnings of $2.50 to $2.65.

Related

1_LIMESTONE

Limestone Secures Financing for Expansion

The company said the $6 million in credit will be used to improve its Tennessee manufacturing facility and buy new equipment.

1_MCKENZIE

Mastry Marine Names Repower Center

St. Augustine, Fla.-based McKenzie Marine is the engine distributor’s latest designated Suzuki Repower Center.

1_VANDERBILT

Vanderbilt Ships First Pontoon

The company said the 700T Series was the first model shipped from its new Fort Wayne, Ind., factory and was delivered to The Marina in Angola, Ind.

1_CHIPS.ACT

NMMA Celebrates CHIPS Act

The legislation aims to return semiconductor manufacturing to the U.S. and allows businesses to deduct R&D costs in the same year they are incurred.

1_COX

Cox Marine Hires Sales and Support Staff

The diesel outboard builder this week brought aboard a new regional sales director, regional sales manager and an aftersales manager.

1_DEALEROUTLOOK

Boating Interests Lose Wind Farm Battle

The Ohio Supreme Court has ruled that a proposed wind farm off the Cleveland, Oh., waterfront meets planning requirements.

1_INFLATION.JULY

July Inflation Data Lags June

Consumer Price Index results may indicate that inflation has peaked, and Producer Price Index data was below market expectations.

1_YAMAHA

Yamaha Posts Higher Sales, Profit

The company’s first half 2022 net sales increased to $1.93 billion, and segment income rose to $330 million.