Brunswick reports 4Q, year-end results - Trade Only Today

Brunswick reports 4Q, year-end results

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Brunswick Corp. today reported increases in sales for the fourth quarter and the 2011 fiscal year, as well as an increase in operating earnings and a reduction in debt for the year.

“In 2011, our company made significant progress in growing our revenue and improving our earnings,” chairman and CEO Dustan McCoy said in a statement. “We achieved double-digit revenue growth and an increase in operating earnings of $176 million despite a flat overall marine market and challenging global economic conditions.

“Our ability to achieve market share gains throughout our segments, combined with continuing success in improving production and operating efficiencies, enabled us to report our highest level of operating earnings since 2006,” he added. “In addition, we continued to reduce our debt levels, ending 2011 with net debt at $185 million.”

For the year that ended Dec. 31, the company reported net sales of $3.75 billion, up from $3.4 billion a year earlier. For the year, operating earnings were $192.4 million, which included $22.7 million of restructuring, exit and impairment charges. In 2010 the company reported operating earnings of $16.3 million, which included $62.3 million of restructuring, exit and impairment charges.

For 2011, the company reported net earnings of $71.9 million, or 78 cents a diluted share, compared with a net loss of $110.6 million, or $1.25 a diluted share, for 2010.

For the fourth quarter of 2011, Brunswick reported net sales of $789.1 million, up from $728.8 million a year earlier. For the quarter, the company reported an operating loss of $18.1 million, which included restructuring, exit and impairment charges of $4.5 million. In the fourth quarter of 2010, the company had an operating loss of $74.7 million, which included $18.5 million of restructuring, exit and impairment charges.

For the fourth quarter of 2011, Brunswick reported a net loss of $29.6 million, or 33 cents a diluted share, compared with a net loss of $104.1 million, or $1.17 a diluted share, for the fourth quarter of 2010.

The boat segment reported net sales of $196.8 million for the fourth quarter of 2011, up 20 percent from the $163.6 million reported in the fourth quarter of 2010. U.S. sales, which represented 69 percent of total segment sales in the quarter, increased by 34 percent. International sales decreased by 10 percent, driven largely by the absence of sales related to the Sealine brand, which was divested in the third quarter of 2011.

For the fourth quarter of 2011, the boat segment reported an operating loss of $28.4 million, which included a gain from restructuring activities of $900,000. This compares with an operating loss of $69.3 million, including restructuring charges of $10 million, in the fourth quarter of 2010.

Boat segment production and wholesale unit shipments increased during the quarter, compared with the fourth quarter of 2010, in response to solid retail demand for Brunswick's boat brands. A greater sales mix of smaller boats had a negative effect on sales during the quarter.

The marine engine segment, consisting of the Mercury Marine Group, including the marine parts and accessories businesses, reported net sales of $373.3 million in the fourth quarter, up 6 percent from $353.3 million in the fourth quarter of 2010. U.S. sales, which represented 52 percent of total segment sales in the quarter, increased by 10 percent and international sales decreased by 2 percent.

For the quarter, the marine engine segment reported an operating loss of $2.3 million, which included $3.8 million of restructuring and impairment charges. This compares with an operating loss of $17.4 million in the fourth quarter of 2010, which included $7.4 million of restructuring charges.

The segment's outboard engine and parts and accessories businesses experienced solid sales growth during the quarter. The decline in operating losses reflects higher sales and cost reductions, as well as lower warranty costs and restructuring charges.

“In 2012, we will remain focused on revenue and earnings growth,” McCoy said. “We believe that the global economic and marine market outlook will continue to be challenging and that demand characteristics will be comparable to those demonstrated in 2011.

“Our entire organization will concentrate its efforts on maintaining its favorable cost position and generating growth through the continuation of market share gains and the execution of organic growth initiatives,” he added.

McCoy said Brunswick expects its 2012 earnings per share to be in the range of $1.20 a share to $1.50 a diluted share.

Brunswick’s stock closed Wednesday at $21.61 a share. Its 52-week high and low are $27.70 and $13.19.

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