Brunswick Corp. reported today that net earnings fell 4 percent in the second quarter, to $80.4 million, from $83.6 million in the second quarter last year. Net sales increased 4 percent, from about $1.05 billion to $1.1 billion.
“Revenue growth in the quarter was led by outboard marine products, marine products and accessories, fitness equipment and U.S. retail bowling, partially offset by declines in fiberglass sterndrive/inboard boats and in our bowling products businesses,” Brunswick CEO Dustan McCoy said in a statement.
For the quarter, which ended June 29, the company reported operating earnings of $136.7 million, which included $4 million of restructuring, exit and impairment charges. In the second quarter of 2012, Brunswick had operating earnings of $125.1 million, which included $800,000 of restructuring, exit and impairment charges.
“Notwithstanding the uneven marine market conditions, we are increasing our expectation for 2013 diluted earnings per share from continuing operations, as adjusted, to a range of $2.55 to $2.65 per diluted share,” McCoy said. “This reflects our solid performance in the first half of the year, a favorable outcome to the recent debt refinancing activity and a lower-than-anticipated tax rate.
The marine engine segment reported net sales of $631.7 million in the second quarter, up 7 percent from $591.2 million in the comparable quarter last year. International sales, which represented 33 percent of total segment sales in the quarter, increased by 3 percent. For the quarter, the marine engine segment reported operating earnings of $119.4 million, compared with operating earnings of $104.9 million in the quarter a year earlier.
The boat segment, composed of the Brunswick Boat Group’s 15 brands, reported net sales of $310.9 million for the quarter, a 1 percent increase from $308.7 million a year earlier. International sales, which represented 37 percent of total segment sales in the quarter, increased by 2 percent during the period. For the second quarter, the Boat segment reported operating earnings of $14.6 million, including restructuring charges of $2.5 million. This compares with operating earnings of $18.7 million in the second quarter of 2012, including restructuring charges of $100,000.
In January, the company announced its intention to exit its Hatteras and Cabo boat businesses. As a result, these businesses continue to be reported as discontinued operations for all periods. All figures reported reflect continuing operations only.