Brunswick Corp. yesterday released results for the 2023 first quarter. The company reported consolidated net sales of $1.74 billion, a 2.8% increase from the year-ago quarter. Brunswick said the results were fueled by better-than-anticipated boat show sales and improved field inventory levels.
Adjusted operating earnings decreased 1.9% from the prior-year quarter, while adjusted operating margins grew 15% (80 basis points).
“Our businesses had a strong start to the year, as continued outstanding new products, and prudent cost management in environment resulted in sales, margin and EPS performance that exceeded expectations for the quarter,” CEO David Foulkes said in a statement. “We experienced better-than-anticipated boat show results, indicating a resilient consumer, and boat field inventory levels are healthier as we enter the primary retail season.”
“Additionally, our free cash flow performance improved by $135 million versus Q1 2022,” he continued, “further solidifying our cash position and balance sheet, and enabling higher-than-planned share repurchases during the quarter.”
The propulsion segment saw a 7% increase in sales, which Brunswick attributed to strong global demand and a favorable product mix due to recent manufacturing capacity increases. The company reported that engine parts and accessories sales were down 13% from the year-ago quarter, a result of softness in international markets and third-party distribution sales.
The Navico Group segment reported an 11% decline, which the company attributed to lower retail orders and a sharp decrease in sales to RV OEMs.
Boat segment reported a 17% increase in sales compared with the 2022 first quarter, which Brunswick says was largely driven by higher dealer inventories.
Freedom Boat Club contributed 6% of overall sales to the Business Acceleration unit.
The company updated its guidance to include net sales of $6.8 billion to $7.2 billion; adjusted diluted earnings per shares between $9.50 and $11; share repurchases in excess of $200 million; and flat to slightly increased net sales compared with the 2022 second quarter.
