Brunswick Corp. is about a third of the way into its plan to expand its parts-and-accessories business by $350 million through acquisitions and the company says it will likely increase the amount of sales growth it will get from that arm of the business.
The recent acquisition of Australian distributor BLA puts the company at about $110 million in growth of the P&A part of the business, Brunswick CEO Dustan E. McCoy told investors during a conference call on Wednesday to discuss first-quarter earnings.
“When we talk about our performance 2016, 2017 and 2018, it's highly likely that you'll see us increase the amount of sales growth we think we can get through from P&A acquisitions,” McCoy told investors and analysts. “We're incredibly happy with this process, with the results that we're going to get from it and what we think the long-term benefits will be.”
Europe has been increasingly favorable for boat companies and Brunswick was able to make gains there, too, McCoy said.
“Our European boat companies have been introducing lots of new products,” McCoy said. “They keep winning awards over there with their product introductions. They’re moving to some bigger products, and that business is developing a little momentum along with it. I think we said Europe will be flat to slightly up, so our ability to take share and the momentum there, we feel good about that market.”
Canada, on the other hand, has been “really, really tough.”
“With the Canadian-U.S. dollar relationship, the price of boats has gone up around 20 percent,” McCoy said. “In our view, it’s going to be a tough place to be for the remainder of this year.”