Brunswick Corporation recently reported results for the third quarter of 2021.
“We delivered our fifth consecutive quarterly record for adjusted operating earnings and adjusted EPS through robust operational performance, successful mitigation of supply chain challenges, and controlling costs and net inflation throughout the enterprise,” said Brunswick Chief Executive Officer David Foulkes. “Despite challenging comparisons to last year, retail demand for our products and services remains extremely healthy and our brands continue to take market share across our verticals. As we close out 2021, we are focused on elevating production levels across our manufacturing footprint to meet demand and refill field inventory during the retail off-season, integrating Navico and our other acquisitions, and closing the most successful year in Brunswick’s history while laying the groundwork for the ‘Next Wave’ of success in 2022 and beyond.”
For the third quarter of 2021, Brunswick reported consolidated net sales of $1,427.2 million, up $194.1 million from the third quarter of 2020. Diluted EPS for the quarter was $1.85 on a GAAP basis and $2.07 on an as adjusted basis. Sales in each segment benefited from increased volume due to continued strong global demand for marine products, market share gains, and higher pricing, with earnings positively affected by increased sales, pricing, and favorable changes in foreign currency exchange rates, partially offset by increased input costs, and higher spending on sales, marketing, and ACES / other growth initiatives. Additionally, versus the third quarter of 2020:
- The propulsion segment reported a 19% increase in sales due to continued strong global demand for all product categories, with the strong increase in operating earnings also due to favorable sales mix and favorable absorption throughout its manufacturing footprint.
- Parts and Accessories segment reported a 7% increase in sales, with sales growth across all businesses in all geographic regions leading to a slight increase in operating earnings.
- Boat segment reported a 22% increase in sales due to increased deliveries to dealers to meet continued strong retail customer demand. Freedom Boat Club, which is part of our Business Acceleration division, contributed approximately 3% of sales to the segment in the quarter. Increased sales volume and lower retail discount levels versus prior year were also offset by higher costs due to manufacturing inefficiencies, resulting in lower segment operating earnings.
“Our businesses are focused on closing out another record year of robust earnings and shareholder returns, with strong margin growth and substantial free cash flow generation resulting from our outstanding operating performance in a healthy marine market,” said Foulkes. “Although we continue navigating certain headwinds, including elevated supply chain, labor, and freight costs, and COVID-19, we remain extremely focused on executing our Next Wave strategy and we are confident that we can continue to lead the marine industry in growth and innovation.”