Brunswick Corporation (NYSE: BC) today reported full-year and fourth quarter results for 2022:
Full year results:
Fourth quarter results:
"Another strong performance in the fourth quarter capped an outstanding 2022 in which Brunswick delivered record sales, operating margins, and operating earnings, with our boat business' full-year adjusted operating margin exceeding 10 percent for the first time in company history" said David Foulkes, Brunswick Chief Executive Officer.
Fourth Quarter Results
For the fourth quarter of 2022, Brunswick reported consolidated net sales of $1,582.7 million, up from $1,431.0 million in the fourth quarter of 2021. Diluted EPS for the quarter was $1.93 on a GAAP basis and $1.99 on an as adjusted basis. Sales growth resulted from steady demand, successful new product introductions, and pricing implemented in previous quarters, partially offset by unfavorable changes in foreign currency exchange rates. All segments contributed to the strong operating earnings and margin growth versus the fourth quarter of 2021, with net sales growth, coupled with prudent cost containment efforts, being partially offset by higher input costs and spending on growth initiatives, our ACES innovation strategy, and new product technology.
Additionally, versus the fourth quarter of 2021:
Propulsion segment reported a 17 percent increase in sales due to continued gains in global sales volume, favorable product mix, and higher prices compared to prior year. Robust operating earnings growth resulted from increased sales and lower operating expenses, offsetting higher inflationary costs and investments in capacity expansion.
Parts and Accessories segment reported an 8 percent decrease in sales as the impact of unfavorable foreign currency exchange rates, return to more normal seasonality in the marine channel, and slower retailer restocking continued in the quarter. Segment operating margins increased in the quarter with the slight net sales decline more than offset by pricing net of costs and lower operating expenses.
Boat segment reported a 26 percent increase in sales with higher wholesale volume partially offset by selective discounting. Freedom Boat Club, which is part of our Business Acceleration division, delivered another strong quarter, contributing approximately 5 percent of sales to the segment. Segment operating margin was 10.8 percent as increased sales, improved mix, and pricing more than offset continued cost inflation.