Brunswick Corp today reported sales of US$1.14bn for its third quarter, compared to US$1.09bn a year earlier. Net income dropped to US$79.0m compared to US$85.3m a year ago.
"Our third quarter revenues increased by 4.4%, reflecting strong growth in the outboard engine and aluminium outboard boat businesses, along with solid growth in our parts and accessories businesses,” said Brunswick chairman Mark Schwabero in a statement. “Overall demand in international marine markets remained strong, led by gains in Europe, Canada and Asia-Pacific, as well as improving conditions in other regions.”
Schwabero added that the latest data for marine markets indicates a “healthy global marketplace”. But its net income fell compared to a year ago because of “certain headwinds” in Brunswick large fibreglass sterndrive/inboard boat business, according to Schwabero.
“We reduced pipelines from second quarter levels in response to weak retail demand over the last several quarters,” he said. “During September, Hurricane Irma disrupted our Florida-based manufacturing operations.”
Brunswick’s Marine Engine segment had sales of US$669.2m for the quarter, up 7% compared to the same quarter a year ago. International sales, representing 30% of total segment sales were up 14%. The segment had operating earnings of US$115.2m compared to US$109.5m a year ago. Sales increases were led by the outboard engine business as well as solid growth from the parts and accessories businesses.
Its Boat segment had sales of US$309.3m, up slightly from US$307.0m a year ago. International sales, which represented 22% of total segment sales in the quarter, increased by 8% compared to the same quarter a year ago. The segment had operating earnings of US$0.1m, compared with operating earnings of US$6.8m a year earlier.
The Boat segment reported growth in its aluminum outboard boat business, particularly in pontoon boats. The decrease in operating earnings resulted mostly from an unfavourable change in sales mix for the segment, resulting from the factors impacting sales comparisons, as well as manufacturing inefficiencies, including costs associated with the hurricane.
"We are lowering our guidance for the year to $3.85 to $3.87,” Schwabero continued. "This adjustment reflects our third quarter results, and our view that certain market headwinds faced in the third quarter in our fitness and large fibreglass sterndrive/inboard boat businesses will continue to impact the fourth quarter.”