Brunswick Corp. fell slightly short on revenue, reporting $985.7 million for the first fiscal quarter, compared with Wall Street predictions of $1.02 billion.
The company said today that it still realized 10 percent revenue growth, and net sales of the combined marine segments increased by 12 percent.
The company also fell just short of analyst estimates of earnings per share, reporting 59 cents, a 7-cent increase from last year but 2 cents shy of expectations. Brunswick reported a net profit of $56.6 million for the quarter that ended April 4, compared with $49.1 million in the quarter a year earlier.
For the first quarter of 2015, the company reported net sales of $985.7 million, up from $894.9 million a year earlier. For the quarter, Brunswick reported operating earnings of $88.7 million, compared with $81.9 million in the prior year.
“Our reported first-quarter revenues increased by 10 percent, or 14 percent on a constant currency basis,” Brunswick chairman and CEO Dustan E. McCoy said in a statement. “Our top line reflected strong growth rates in our marine parts and accessories business and fiberglass sterndrive/inboard boats. This growth was supported by another solid performance by outboard boats and engines, as well as fitness equipment.”
Operating earnings increased by 8 percent from the prior year. The operating margin decline of 20 basis points was anticipated and incorporated into the company’s previously stated guidance, McCoy said.
“Our full-year plan reflects more favorable earnings growth rates and margin expansion in the second half of 2015,” he said.
The marine engine segment reported net sales of $562.2 million in the quarter this year, up 11 percent from $505.1 million a year earlier.
International sales, which represented 32 percent of total segment sales in the quarter, were down 1 percent, compared with the prior-year period. Sales increases in the quarter were led by the segment’s parts and accessories, which included revenue from acquisitions completed in the second and third quarters of 2014, and outboard engine businesses.
The boat segment reported net sales of $318 million for the quarter, an increase of 12 percent from $282.8 million in the quarter last year. International sales, which represented 31 percent of total segment sales in the quarter, decreased by 3 percent during the period.
On a constant currency basis, international sales were up 5 percent. For the first quarter, the boat segment reported operating earnings of $7.7 million, compared with $8.4 million in the quarter last year.
The boat segment's revenue growth reflected higher average selling prices, compared with last year’s quarter, combined with an increase in wholesale unit shipments during the quarter.
Operating earnings benefited from higher sales, but were more than offset by planned costs associated with new product introductions, plant expansions and production ramp-up, along with an unfavorable effect from foreign exchange.
Read more about Brunswick’s conference call in Thursday’s Trade Only Today,