Brunswick Corp. yesterday announced financial results for fiscal 2022 and the fourth quarter.
Net sales for the year were $6.8 billion, up 16.5% from 2021. Operating earnings increased 18.3% to $1.05 billion, and operating margin grew 20 basis points to 15.4%.
Fourth quarter net sales were up 10.6% to $1.6 billion compared with the year-ago quarter. Operating earnings increased 29.4% to $202.2 million, while operating margin edged up 190 basis points to 12.8%.
“Another strong performance in the fourth quarter capped an outstanding 2022 in which Brunswick delivered record sales, operating margins and operating earnings, with our boat business’s full-year adjusted operating margin exceeding 10% for the first time in company history,” CEO David Foulkes said in a statement. “Our exceptional operating performance and cost containment in a challenging macro-economic environment continues to highlight the strength of our businesses, our leaders, and the durability of our portfolio and earnings profile.”
The propulsion, parts and accessories, and boat segments posted notable sales growth in the quarter at 17%, 8% and 26%, respectively.
“Our propulsion business delivered another quarter of strong top-line and earnings growth,” Foulkes said in the statement. “Favorable product mix and pricing actions taken earlier in the year led to higher sales and operating margins than the prior-year quarter. Mercury’s sustained investment in outboard engines continues to deliver strong returns, as Mercury has gained [approximately] 300 basis points of overall retail share in the U.S. and more than 10 percentage points in over-300-hp engines since December 2019.”
Brunswick’s guidance for fiscal year 2023 forecasts flat to slight growth in net sales to between $6.8 billion and $7.2 billion, an operating margin of approximately 15%, and free cash flow of more than $375 million.
