Brunswick Corp today reported first-quarter revenues of US$1.15bn, up 7% from the previous year. Net income was US$80.5m compared to US$74.2m a year ago.
Brunswick chairman Mark Schwabero said the company’s outlook for the boating industry in 2018 remains “in line” with its earlier forecasts. “While unfavourable weather conditions, including the Northeast and Midwest regions of the US as well as Europe, have contributed to a slightly slower start to the marine retail selling season, we remain confident in our view of the industry for 2018," Schwabero said in a statement.
Brunswick’s Marine Engine segment reported a 9% sales gain to US$687.1m. International sales, representing 31% of total engine sales, were up 10% compared to a year ago. The division had operating earnings of US$95.7m compared to US$87.7m in the same period a year ago. Strong growth in outboard sales and solid growth in parts and accessories contributed to the increases.
The Boat segment reported net sales of US$304.0m for the quarter, up 7% over the previous year. International sales, representing 28% of total sales, were up 14% for the quarter. The Boat segment had operating earnings of US$24.7 compared with US$16.2m a year ago. Brunswick no longer includes Sea Ray in its financial statements, reporting it as discontinued operations. The company said its aluminium boat sales, along with freshwater fibreglass sales from Bayliner, Uttern and Quicksilver, were largely responsible for the sales growth.
Brunswick has raised its sales guidance to 6% to 7% for 2018. "We are also narrowing the range for our full-year expectations of diluted EPS, as adjusted, to $4.50 to $4.65, which takes into account benefits from a lower federal tax rate, continued successful marine business performance, potential inflationary pressures, and additional revenue and margin risks in the Fitness business for the remainder of the year," said Schwabero.