PHOTO COURTESY SIMRAD

Brunswick Corp. posted consolidated net sales of $1.59 billion in the fiscal third quarter, compared with $1.7 billion for the same period in 2022.

The company pointed to lower wholesale orders resulting from field inventory reaching normal levels and softer retail market conditions, partially offset by annual price increases, and market share gains, and benefits from new products.

Adjusted earnings were down 17.5% at $230 million.

“We delivered a solid third quarter as our continued market share gains, strength in new products, efficient operations at our facilities, comprehensive cost-control measures, and the resilient composition of our portfolio drove strong earnings and free cash flow despite the ongoing challenging macro-economic backdrop,” CEO David Foulkes said in a statement. “Extended summer weather in many parts of the U.S. allowed for additional boating time and drove year-over-year growth in engine P&A products sales. However, marine dealers continue to demonstrate some caution with stocking levels as we exit the primary retail selling season in large parts of the U.S.”

Foulkes said that unit sales in the U.S. new-boat market showed slight directional improvement, with preliminary third quarter flat and year-to-date down 7.5%, with Brunswick growing share in both periods.

“We continue to monitor retail market conditions closely, increasing support for retail sales as needed, actively managing boat pipelines to achieve year-end levels within historical norms, and generating strong free cash flow, which year-to-date is $233 million greater than in the first nine months of 2022, all while advancing our strategic initiatives, including our ACES strategy,” Foulkes said.

Brunswick’s propulsion segment had slightly lower earnings than a record third quarter in 2022, driven by growth in high-horsepower outboards, controls and rigging. Sterndrive sales were down, but Mercury continued to expand its outboard market share and gained 90 basis points 2023. Net sales for the quarters were $718.2 million, compared with $714.4 million a year ago.

The parts and accessories business was up versus the year-prior quarter, and the Navico group posted higher gross and operating margins despite slower marine and RV OEM orders. Retailer stocking recovered, and the electronics segment expects to drive strong retail sales during the holiday season.

Sales and earnings were down in the boat segment, which Brunswick expected, with premium products outperforming entry-level products. The company said Freedom Boat Club continued to deliver steady membership sales and opened its 400th location. The club is nearing 60,000 membership agreements with more than 91,000 members.