Brunswick Corp. this morning announced its third quarter financial results.
The company reported consolidated net sales of $1.27 billion, a decline of 20.1% from $1.6 billion in the year-ago quarter. Adjusted operating earnings were down 45.3% to $125.9 million, and adjusted operating margin grew 9.9%, or 450 basis points.
“Our businesses delivered solid results as our continued market share gains, wealth of new products and expanded contribution from recurring revenue businesses resulted in third quarter financial performance in line with expectations despite the challenging marine market,” CEO David Foulkes said in a statement. “We continue to tightly manage field inventory across all our channels, and have adjusted production accordingly yet are still gaining or maintaining share in key categories, including U.S. outboard engines, where Mercury delivered 420 basis points of share gains in the third quarter versus prior year.”
The propulsion segment reported a 32% decrease in sales. Additionally, operating earnings were below the prior-year quarter due to lower sales and the impact of absorption from decreased production levels.
The engine parts and accessories business had a 3% decrease in sales year-over-year, though operating margin performed at a record 26%.
Navico Group’s sales were down 14%, driven by reduced sales to boatbuilders due to lower production levels. Segment operation earnings also decreased.
The boat segment was down 19% year-over-year because of softer wholesale orders. The Freedom Boat business contributed 12% of sales to the segment.
Brunswick’s cash and marketable securities totaled $301.7 million at the end of the quarter, which was down $178 million compared with the prior year. Net cash provided by operating activities was $137.5 million for the first nine months of 2024.
Foulkes provided the following guidance for the full year and last quarter of 2024:
• net sales of $5.1 billion to $5.2 billion
• adjusted diluted earnings per share of approximately $4.50
• free cash flow of approximately $250 million
• annual share repurchase of approximately $200 million
“With the majority of the retail selling season behinds us, the 2024 U.S. marine retail market is trending to our most recent forecast of down approximately 10%, with wholesale production of boats and engines down more significantly,” Foulkes said in the statement.
“We are not anticipating any change in market conditions for the fourth quarter, and are responding by adjusting production to ensure field inventory levels remain appropriate, setting us up for what we anticipate to be a stronger 2025,” he added.
