Brunswick Corp. reported strong fourth quarter results, with consolidated net sales of $1.16 billion, a 26.5 percent increase compared with the same time period last year.
For the year ended Dec. 31, 2020, consolidated net sales rose 5.8 percent to $4.37 billion, up from $4.1 billion in 2019.
“Despite the many challenges faced in 2020, including the significant disruptions to our global operations during the first half of the year due to the pandemic, we expanded gross and operating margins, delivered an 11th consecutive year of adjusted EPS growth, and generated record free cash flow,” CEO David Foulkes said in a statement. “The transformational changes we have made to our business in recent years have reinforced our position as the market leader in the marine industry and have positioned us to meet or exceed the financial targets laid out in our strategic plan.”
Brunswick’s propulsion, parts and accessories, and boat segments were up significantly for the quarter. Propulsion posted a 32 percent gain, P&A was up 27.3 percent, and boats increased 20.1 percent, compared to the same quarter in 2019.
For the full year, propulsion was up 11 percent at $1.87 billion, and parts and accessories posted a 9.3 percent gain at $1.51 billion.
The boat segment was down 6.3 percent for the year, as strong demand led to historically low inventory levels. The company said there were 40 percent fewer boats in dealer inventory at the end of 2020 than at the close of 2019.
Brunswick said it expects to continue growing OEM partnerships and looks to increase production capacity. The company earlier this week announced it will reopen its Palm Coast, Fla., plant to expand Boston Whaler production by 40 percent, and expand capabilities at two international plants.
In addition, it expects to do the same with Freedom Boat Club, which “exceeded expectations while driving exceptionally strong synergy sales across our marine portfolio,” Foulkes said. FBC added more than 40 locations and almost 10,000 memberships last year.
Brunswick remains cautiously optimistic about 2021.
“While we remain very cognizant of potential macroeconomic headwinds and pandemic-related uncertainties, our continued strong performance in a robust marine retail environment has created improved visibility into our substantial growth opportunities for 2021,” Foulkes said.