Brunswick Corp. finished 2023 with net sales of $6.4 billion, up 6% year-over-year, and operating earnings up 22.5% to $734.9 million (unadjusted). For the fourth quarter, net sales were down 14% to $1.36 billion, and operating earnings were down 43.5% to $108 million.
Brunswick said in a statement that fourth-quarter sales “were below prior year as the impact of more measured wholesale ordering patterns by dealers, OEMs and retailers, coupled with higher discounts in select segments, were only partially offset by successful new product momentum, positive mix and pricing actions implemented in previous quarters. Operating earnings and margin declined versus a record high fourth quarter in 2022 resulting from the impact of lower net sales and prudent spending on growth initiatives, partially offset by ongoing cost containment efforts.”
The company reported that cash and marketable securities totaled $479.7 million at the end of 2023, down $133.3 million from year-end 2022 levels. Net cash provided by operating activities, which includes net earnings net of non-cash items, totaled $745.2 million for the year, up $164.8 million from prior year, primarily due to significant reduction in working capital usage.
“Strong cash generation, high-horsepower outboard market share gains, and steady operating performance in the fourth quarter helped close out a successful 2023 in which Brunswick delivered the second highest sales and adjusted EPS in company history,” CEO David Foulkes said in a statement. “Despite the challenging macroeconomic backdrop leading to some consumer and channel caution, resilient demand for our products and services, especially across our premium brands, together with continued cost containment and robust capital strategy execution, allowed us to deliver strong earnings and sector-leading shareholder returns.”
Foulkes added that efforts to control inventory levels and spending freed up cash flow for the second half of the year, which allowed the company invest in new products and technologies.
Propulsion finished its second-best year on record, despite a 12% decrease in fourth quarter sales compared with the record highs of 2022. For the full year, Mercury gained 50 basis points of overall U.S. retail outboard share and 150 basis points of retail share in outboards rated at more than 30 hp.
Parts and accessories sales were down 1% for the fourth quarter, and Navico Group sales were down 17%, primarily due to a softer marine OEM market and weak RV manufacturing during the quarter.
The boat segment was down 22% with lighter wholesale orders blamed for the downturn. Dealers continue to be concerned about inventory levels. Freedom Boat Club contributed approximately 8% of sales.
For fiscal 2024, Brunswick is forecasting a year of steadily easing financial conditions. The initial forecast is for retail unit sales to be flat compared with 2023, with net sales between $6 billion and $6.2 billion and adjusted operating margin between 12% and 13%.
