Brunswick reports 1Q results - Trade Only Today

Brunswick reports 1Q results

Brunswick Corp. reported 9 percent first-quarter revenue growth.
Author:
Publish date:

Brunswick Corp. reported 9 percent first-quarter revenue growth and the company’s adjusted operating earnings increased by 13 percent from the 2015 quarter.

Diluted earnings per share was 71 cents, a 12-cent increase from the previous year.

“Our reported first-quarter revenues increased by 9 percent, or 10 percent on a constant currency basis,” Brunswick chairman and CEO Mark Schwabero said in a statement. “Our top line reflected strong growth rates in our fiberglass outboard boats and marine parts and accessories businesses. This growth was supplemented by another solid performance in outboard engines, as well as benefits from our acquisition strategy.

“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,” Schwabero continued. “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. Demand in non-U.S. markets remains mixed, and we continue to closely monitor and plan to manage through any challenging conditions.”

The company reported net first-quarter sales of $1.07 billion, up from $985.7 million a year earlier, and operating earnings of $96 million. In the quarter last year Brunswick had operating earnings of $88.7 million.

In this year’s quarter the company reported a profit of $63.2 million, or 68 cents a diluted share, compared with $56.6 million, or 59 cents a share, a year earlier.

The engine segment reported net sales of $595.5 million, up 6 percent from $562.2 million in last year’s quarter. For the 2016 quarter the segment reported operating earnings of $78.3 million, compared with $74.2 million in the 2015 quarter.

Sales increases in the quarter that ended April 2 were led by the segment’s parts and accessories businesses, which included revenue from acquisitions completed in the second and fourth quarters of 2015, and Mercury’s outboard engine business, partially offset by declines in the sterndrive engine business

The boat segment reported net sales of $336.8 million for the quarter, an increase of 6 percent from $318 million in the 2015 quarter. International sales, which represented 25 percent of total segment sales in the quarter, decreased by 12 percent from the prior-year period. For the first quarter of 2016 the boat segment reported operating earnings of $16.4 million, compared with $7.7 million in the 2015 quarter.

The boat segment's increased revenue reflected strong growth in fiberglass outboard boat sales and modest increases in sterndrive/inboard boat sales, partially offset by slight declines in aluminum boat sales, the company said. Operating earnings benefited from higher sales, a favorable product mix and lower commodity costs and savings from sourcing initiatives.

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.