Brunswick Corp. reported an 18.3 increase in first-quarter net sales and a 3.3 percent increase in operating earnings, adding that pent-up demand for boats will allow the company to continue production at maximum levels this year.
Brunswick collected approximately $1.7 billion in sales in the quarter, with operating earnings of $239.5 million. Adjusted operating margins narrowed by 120 basis points to 15.8 percent, the company said in its earnings report yesterday.
“The pace of retail sales continues to be dominated by the twin supply-side challenges of exceptionally low field inventory levels and supply-chain disruption,” CEO David Foulkes said in the statement.
Brunswick said global field boat inventory levels were 6 percent lower at the end of the first quarter than at the same time in 2021. The drop was more pronounced in the United States, where inventories were down 12 percent during the same period. That’s with inventory levels temporarily inflated in the northern United States and Canada because of the slower arrival of spring weather, which has caused some delays in deliveries and registrations.
Wholesale activity is constrained by the supply-chain tightness resulting from China’s Covid-19 lockdowns and freight slowdowns, the company said.
“As a result of the historically low dealer inventory levels and continued strong boating participation, production levels remain elevated across all our businesses to satisfy retail demand and to rebuild product pipelines,” Foulkes said.
