Brunswick Corp. releases 4Q, full-year 2017 financial results

Brunswick Corp.’s fourth quarter and full-year 2017 financial results were bolstered by a net sales increase of 14 percent in the company’s boat segment as well as an 8 percent increase in the marine engine segment.

Collectively, Brunswick’s marine businesses reported a 10 percent increase in both revenue and operating earnings over 2016.

“Our 2017 revenue increased by 9 percent, reflecting strong growth in all three of our primary boat categories and the outboard engine business, along with solid growth in our parts and accessories businesses,” said Brunswick Chairman and Chief Executive Officer Mark Schwabero.

Overall demand in global marine markets was strong, as domestic markets continued to grow and international markets benefited from gains in Europe, Canada, and Asia-Pacific, as well as improving conditions in other regions.

Successful marine product launches and continued strong market share, combined with an effective acquisition strategy, have positioned Brunswick’s marine businesses for success in 2018, Schwabero said.

In December, Brunswick announced its intention to sell its Sea Ray businesses, including the Meridian brand.

Starting with the fourth quarter of 2017, Brunswick is reporting the historical and future results of these businesses as discontinued operations.

The Sea Ray businesses reported net sales of $103.2 million in the fourth quarter and $387.6 million for full-year 2017.

The businesses had adjusted operating losses of $5.9 million in the fourth quarter and $17.2 million for the year.

These amounts exclude a $36 million impairment loss recorded in the fourth quarter of 2017 in connection with the anticipated sale of the businesses, as well as $2.2 million and $9.9 million of other restructuring, exit, integration, and impairment charges for the fourth quarter and full-year respectively.

Brunswick’s marine engine segment reported net sales of $564.6 million in the fourth quarter of 2017, up 13 percent from $500.2 million in the fourth quarter of 2016.

International sales, which represented 31 percent of total segment sales in the quarter, were up 6 percent compared to the prior year period.

For the quarter, marine engines reported operating earnings of $57.5 million. This compares with operating earnings of $51.0 million in the fourth quarter of 2016.

Strong growth in the outboard engine business and the parts and accessories businesses led to the sales increases in the quarter.

The improvement in operating earnings in the fourth quarter was primarily the result of higher net sales and favorable changes in product mix, partially offset by planned increases in growth investments in advance of new product introductions and unfavorable adjustments related primarily to product warranty and the resolution of litigation.

Brunswick’s boat segment reported net sales of $283.2 million for the fourth quarter of 2017, up 15 percent from $245.3 million in the fourth quarter of 2016.

International sales, which represented 27 percent of total segment sales in the quarter, increased by 14 percent compared to the prior year period.

For the fourth quarter of 2017, the Boat segment reported operating earnings of $21.9 million. This compares with operating earnings of $13.1 million in the fourth quarter of 2016.

The boat segment’s revenue reflected strong growth in the aluminum and fiberglass outboard boat businesses, Schwabero said, adding the increase in operating earnings was primarily the result of higher net sales and improved operating efficiencies.

“Our outlook for 2018 is generally consistent with our recently provided three-year strategic plan and indicates another year of strong revenue and earnings growth, with excellent cash flow generation,” Schwabero said. “We expect our marine businesses’ top-line performance to benefit from the continuation of solid global growth, along with the success of new products.” 

Brunswick will host a conference call today at 10 a.m. CST to discuss its fourth quarter and full-year 2017 results. The call will be hosted by Schwabero, William L. Metzger, senior vice president and chief financial officer, and Ryan M. Gwillim, vice president – investor relations. The call will be broadcast over the Internet at ir.brunswick.com.