Brunswick Corp. reports 20% sales decrease in Q3

Brunswick Corporation recently released its third quarter 2024 financial results. For the third quarter of 2024, Brunswick reported consolidated net sales of $1,273.3 million, down from $1,593.6 million in the third quarter of 2023. The company said third quarter sales were below prior year as the impact of continued lower wholesale ordering by dealers and OEMs, combined with higher discounts in certain business segments, was only partially offset by annual price increases and benefits from well-received new products. Operating earnings were down versus prior year as a result of the impact of lower sales and lower absorption from decreased production levels, partially offset by new product momentum, annual price increases and ongoing cost control measures throughout the enterprise.

“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,” said Brunswick Chief Executive Officer, David Foulkes. “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. Our third quarter results again demonstrated the resiliency of our portfolio, with our recurring revenue businesses and channels, including our Engine P&A business, Propulsion’s repower business, Freedom Boat Club, and Navico Group’s aftermarket sales, contributing nearly 70% of our third quarter adjusted operating earnings. In addition, our businesses delivered strong cash flow, completing $190 million in share repurchases year-to-date and maintaining our commitment to return value to shareholders.”

Brunswick Corporation Q3 2024 by segment:

The company’s propulsion segment reported a 32% decrease in sales resulting from the enterprise factors listed above, partially offset by market share gains. Operating earnings were below prior year primarily due to lower sales and the impact of lower absorption from decreased production levels, partially offset by cost control measures.

Its Engine Parts and Accessories segment reported a 3% decrease in sales versus the same period last year.

The Products business sales were down 3%, and Distribution business sales were down 2% compared to prior year. Segment operating margin was a record 26%, up more than 300 basis points versus prior year resulting from the efficient performance of the operations in Brownsburg, Indiana and cost control across the business.

The Navico Group segment reported a sales decrease of 14%, primarily driven by reduced sales to marine OEMs resulting from lower boat production levels to match retail ordering patterns, partially offset by higher international sales and strong new product momentum. Segment operating earnings decreased as the impact from lower sales was only partially offset by lower operating expenses.

Brunswick’s Boat segment reported a 19% decrease in sales resulting from softer wholesale orders, as its channel partners continued to order cautiously, and higher incentives and discounting were only partially offset by the favorable impact of modest model-year price increases. Freedom Boat Club had another strong quarter, contributing approximately 12% of segment sales including the benefits from recent acquisitions. Segment operating earnings were within expectations as the impact of net sales declines and lower absorption from the reduced production was partially offset by pricing and continued cost control.

“As we enter the final months of the year, we estimate full year new boat retail unit sales to finish in-line with our expectations of down approximately 10% versus prior year,” Foulkes said. “With the core retail selling season behind us and retail discounting levels remaining elevated, dealer re-ordering in some segments is slower than anticipated, leading most boat OEMs to maintain lower production rates, impacting Propulsion and Navico Group OEM orders. However, our aftermarket-based engine parts, accessories, and distribution businesses and Freedom Boat Club continue to perform well as boating participation remains strong.”

A complete and full-text financial results release is available on the Brunswick Corporation website.