Brunswick Corporation announced 4th quarter and 2018 year-end results today with total marine revenues of US$4.12 billion for the year, up 12% (adjusted)

2018 Highlights

IBI has summarised the top-line takeaways from Brunswick’s earnings presentation today and will provide a more in-depth analysis of the full year-end report shortly.

2018 Sales & Earnings*Amount (adjusted)Growth

Marine Engine Sales (incl P&A)

$2.99bn

+13.7%

Boat Sales

$1.42bn

+6.2%

Total Marine Sales

$4.07bn

+11.5%

Marine Operating Earnings

$589m

+19.0%

* Constant currency, excluding acquisitions and Sea Ray Sport Yachts & Yachts

  • Record sales & growth
  • Global marine markets remain steady
  • Robust demand for outboard engines
  • Unit volume for main US powerboat segments up 3%
  • Retail unit sales: up 3% in US; up 2% globally
  • Boston Whaler, Lund & Sea Ray were market leaders in their respective categories
  • Inventory pipelines are well-positioned leading into main retail selling season
  • Global revenue across combined marine segments up 12% (8% constant currency, adjusted)

Revenue Growth Rates by Region

RegionEnginesBoatsTotal2018 Mix*

US

11%

9%

11%

71%

Europe

7%

(2)%

4%

11%

Canada

9%

0%

4%

7%

Asia-Pacific

4%

8%

4%

7%

Rest-of-World

7%

(33)%

(1)%

4%

Total

10%

6%

8%

100%

* Constant currency, excluding acquisitions and Sea Ray Sport Yachts & Yachts

“Our combined marine portfolio had a fantastic 2018, which led to the company’s ninth consecutive year of adjusted EPS growth.”  

Brunswick Chief Executive Officer David Foulkes

Boston Whaler Outrage

Boston Whaler’s Outrage

2019 Outlook

Continued revenue and margin growth

  • Total revenue growth: 9%-11% (including 4% from completed acquisitions)
  • Engine Segment: low-to-mid teens growth (including parts and accessories)
  • Boats (US): mid-single digit growth
  • Boats (International): flat
  • Boats Total:  low-to-mid-single digit growth