Brunswick Corporation (NYSE: BC) today reported results for the second quarter of 2020.
For the second quarter of 2020, Brunswick reported consolidated net sales of $987.8 million, down from $1,163.5 million in 2019. Diluted EPS for the quarter was $0.89 on a GAAP basis and $0.99 on an as adjusted basis.
The boat segment, which manufactures and distributes recreational boats, and includes Business Acceleration operations, reported lower sales and earnings against prior year due to the temporary suspension of manufacturing in most plants in April and ramp-up activities into May. Freedom Boat Club, which is part of Business Acceleration, contributed approximately 2% of sales in the quarter, despite many locations being impacted by local business closure orders early in the quarter.
The Propulsion segment, which manufactures and distributes marine engines and related controls, rigging, and propellers, reported a sales decrease in the quarter as continued strong demand for higher horsepower outboard engine categories and related controls and systems was offset by the impact of production suspensions at Mercury and its OEM customers due to the COVID-19 pandemic. Operating earnings also decreased as benefits from cost reduction activities were more than offset by lower
sales and the unfavorable absorption resulting from COVID-19 production disruptions, as well as the unfavorable impact of changes in foreign exchange rates and tariffs.
"Our second quarter performance again demonstrated the power of our marine-focused portfolio despite the unprecedented disruption to the global economy resulting from the COVID-19 pandemic," said Brunswick Chief Executive Officer David Foulkes. "Our operations and supply-chain teams did a wonderful job of quickly and safely restarting and ramping-up our global production facilities, while rigorously applying our COVID-19 health and safety protocols. We continue to enhance these protocols to keep our 13,000 global employees safe, and I want to thank them for all their hard work, sacrifice, and vigilance during this challenging time."
"While we remain very cognizant of potential future macroeconomic headwinds and other uncertainties, our resilient second quarter performance, together with a surging marine retail environment, has created substantial growth opportunities for the remainder of 2020
and 2021," said Foulkes. "Given recent sustained demand, elevated production levels over time will be required to rebuild pipelines, and together with substantial upcoming new product offerings, should drive wholesale growth through 2021 and potentially beyond. Our focus on structural cost containment, along with our strong financial profile and
healthy balance sheet and liquidity, enable us to invest in our businesses, consistent with our standing objective of driving shareholder value, while ensuring that we continue to prioritize and devote our best efforts to protecting the health and welfare of our employees in the COVID-19 environment."
Find the full Q2 financial report here.