Brunswick reports 2Q results - Trade Only Today

Brunswick reports 2Q results

Brunswick Corp. today reported a second-quarter net sales increase of 9 percent.
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Brunswick Corp. today reported a second-quarter net sales increase of 9 percent, reflecting growth in fitness and fiberglass outboard and aluminum boats, as well as solid performance in outboard engines and marine parts and accessories.

The company reported net sales of $1.24 billion for the quarter that ended July 2, up from $1.14 billion a year earlier. Net earnings were $108.1 million, or $1.17 a diluted share, compared with $107.6 million, or $1.14 a share, in the quarter last year.

“The U.S. marine market continues to reflect solid fundamentals and growth, which are supported by stable boating participation, favorable replacement-cycle dynamics and innovative products being introduced throughout the marketplace,” Brunswick CEO Mark Schwabero said in a statement. “Our product successes in both our engine and boat segments have enabled continued market-share gains and mix benefits.”

The marine engine segment reported net sales of $719.7 million, up 4 percent from $689.2 million in the year-earlier quarter.

International engine sales, which represented 29 percent of total segment sales in the quarter, were up 2 percent from the prior-year period. On a constant currency basis, international sales were up 4 percent.

The marine engine segment reported operating earnings of $139 million, compared with $131.8 million in the quarter last year.

Sales increases in the quarter were led by Mercury’s parts and accessories businesses and the segment’s outboard engine business, partially offset by declines in the sterndrive engine business.

The boat segment, composed of 15 brands, reported net sales of $368.1 million, an increase of 5 percent from $349.3 million in the quarter last year.

International sales, which represented 27 percent of total segment sales, decreased by 5 percent from the prior-year period.

On a constant currency basis, international sales were down 4 percent. For the quarter, the boat segment reported operating earnings of $22.7 million, compared with $20.9 million in the quarter last year.

The boat segment's increased revenue reflected strong growth in fiberglass outboard and aluminum boats, partially offset by declines in sterndrive/inboard boats.

“Our outlook for 2016 continues to reflect another year of outstanding earnings growth, with excellent cash flow generation,” Schwabero said. “We believe we are well- positioned to generate strong sales growth and adjusted earnings per share growth at a mid-to-high-teen percent rate throughout our three-year plan.

“We expect our businesses’ top-line performance for the year will benefit from the continuation of solid market growth in the U.S. and Europe and the success of our new products, partially offset by weakness in certain other international markets and the negative impact of a stronger U.S. dollar,” Schwabero said.

“As a result, our plan, including acquisitions, reflects revenue growth rates in 2016 to be in the range of 10 to 11 percent, absent any significant changes in our global macroeconomic assumptions,” he said. “In total, acquisitions are expected to account for about 5 percent of 2016’s projected sales growth, reflecting the impact of announced transactions in 2015 and 2016.”

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