Brunswick Corp. reported third quarter net sales of $1.698 billion, a 19 percent increase compared with the year prior quarter. Adjusted operating earnings were $278.8 million, a 26.1 percent increase over 2021.
The company reported that all segments posted sales growth.
“We executed an exceptional third quarter, as our new products, strategic investments, continued operational efficiency and prudent cost control in a challenging macro-economic environment, together with a resilient marine market, resulted in record sales, operating margins and earnings for any third quarter in our history,” CEO David Foulkes said in a statement.
“We delivered the quarter despite additional challenges, with Hurricane Ian significantly impacting our many Florida facilities and operations during the end of the quarter, certain specific supply-chain shortages at Mercury and Navico Group that could not be fully resolved by the end of the quarter, and unfavorable changes in foreign currency exchange rates negatively impacting sales and earnings more than anticipated,” he added.
Brunswick said its propulsion segment gained 100 basis points of outboard retail market share in the United States and internationally. Mercury was impacted by supply-chain issues in the quarter, which led to nearly 2,500 midrange engines awaiting one component for completion at the close of the period. Brunswick expects this will be remedied in the next quarter.
New high-horsepower outboard capacity in the Fond du Lac, Wis., facility remains on budget and on track to come online in the fourth quarter, according to the statement.
The propulsion segment reported a 14 percent increase in sales compared with the year prior quarter, and parts and accessories had a 19 percent increase, driven by acquisitions completed in 2021.
The boat segment had a 27 percent increase in sales, and double-digit operating margins for the second-consecutive quarter. Freedom Boat Club’s southwest Florida operations had more than 100 boats damaged in Hurricane Ian, and some locations are unlikely to reopen until 2023.
Foulkes said 2022 “is likely to be a record year for Brunswick. During the next several quarters, we will showcase a barrage of exciting new products coming to market.”
Brunswick anticipates net sales of $6.9 billion for the year, adjusted diluted earnings per share of $10, and fourth quarter adjusted diluted earnings per share growth of more than 30 percent compared with the fourth quarter of 2021.