LAKE FOREST, Ill. -- Brunswick Corporation today reported results for the fourth quarter and full-year of 2013.
2013 Full-Year Highlights:
- Net sales increased 5 percent versus 2012.
- Gross margin was 70 basis points higher than prior year.
- Adjusted operating earnings increased 12 percent from 2012. On a GAAP basis, operating earnings were up 15 percent.
- GAAP and adjusted pretax earnings increased by 27 percent versus 2012.
- Diluted earnings per common share, as adjusted, of $2.73, increased $0.64 versus the same period of 2012. On a GAAP basis, $8.26 per diluted share, reflected the reversal of deferred tax valuation allowance reserves of $6.39 per share.
“Our results in 2013 represent the fourth consecutive year of strong improvements in earnings,” said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy. “Operating earnings, pretax earnings and diluted earnings per common share, all on an as adjusted basis, increased by 12 percent, 27 percent, and 31 percent, respectively, for the year. Sales increased by 5 percent, which is at the high-end of our initial growth target for the year.
“Our 2013 gross margin of 26.1 percent reflects an increase of 70 basis points from the prior year and represents the highest annual level achieved since 2000. Operating expenses increased by 5 percent, due to higher research and development expense and other growth-related investments primarily associated with company-wide strategic initiatives. Lower net interest expense and a reduced effective tax rate (excluding the impact of restructuring charges, losses on early extinguishment of debt, reversal of deferred tax valuation allowance reserves and special tax items) also contributed to our higher diluted earnings per common share, as adjusted,” McCoy added.
“Higher earnings generated solid free cash flow, leading to significant progress in further strengthening our balance sheet. We reduced debt balances by $112 million during the year, lowering net interest expense by approximately $23 million.
“Our 2013 results were outstanding and are the result of strong execution of our business strategy by our 16,000 global employees. With our ability to successfully execute, we not only produced excellent results, but we also continue to create a solid platform for continued improvement in future financial results,” McCoy concluded.
For more information, read the full report [PDF].