Brunswick Corporation reported results for the first quarter of 2021.
"Our businesses had a fantastic start to 2021, with a very healthy marine market, strong boating participation, and outstanding operating performance driving historic financial results," said Brunswick Chief Executive Officer David Foulkes. "Robust retail demand for our products continues to drive low field inventory levels, with increased production across all our facilities necessary to satisfy orders from our OEM partners and dealer network. Our teams have performed exceptionally
well in the face of supply and transportation headwinds, tighter labor conditions, and continued impact from the COVID-19 pandemic, and we are excited about our ability to further harness the positive momentum we have generated to propel our growth and industry leadership."
For the first quarter of 2021, Brunswick reported consolidated net sales of $1,433.2 million, up from $965.5 million in the first quarter of 2020. Diluted EPS for the quarter was $2.15 on a GAAP basis and $2.24 on an as adjusted basis. Sales in each segment benefited from strong global demand for marine products, with earnings positively impacted by the increased sales, favorable factory absorption from increased production, and favorable changes in foreign currency exchange rates, partially offset by higher variable compensation costs. Versus the first quarter of 2020.
The propulsion segment reported a 47% increase in sales due to continued strong global demand for all product categories and continued market share gains. Operating earnings also benefited from favorable customer mix.
The parts and accessories segment reported a 52% increase in sales, with sales growth across all businesses in all geographic regions. Operating earnings also benefited from improved sales mix.
The boat segment reported a 44% increase in sales due to increased sales volumes to dealers to meet continued strong retail customer demand and strong operational performance. Freedom Boat Club, which is part of Business Acceleration, contributed approximately 2% of sales to the segment in the quarter. Segment operating earnings were driven by the increased sales volume and lower retail discount levels versus prior year.
"Our outstanding performance in a healthy marine market is further evidence of our ability to continue to successfully execute our marine strategy and drive shareholder value," said Foulkes. "Although we continue navigating certain headwinds, including remaining macro-economic uncertainty from the COVID-19 pandemic, elevated supply and transportation challenges, and tightening of labor pools in certain of our manufacturing locations, we believe the strategic portfolio actions and cost reduction efforts executed in the last two years, together with our strong pipeline of new products, outstanding operational performance, and the successful execution of our capital strategy, position us well to deliver strong results throughout 2021 and well beyond."