Brunswick Corporation recently reported results for the third quarter of 2023.
For the third quarter of 2023, Brunswick reported consolidated net sales of $1,593.6 million, down from $1,698.2 million in the third quarter of 2022. The company said third quarter sales were below prior year with lower wholesale orders resulting from field inventory reaching normal levels and softer retail market conditions, partially offset by annual price increases, and market share gains, and benefits from well-received new products.
“We delivered a solid third quarter as our continued market share gains, strength in new products, efficient operations at our facilities, comprehensive cost control measures, and the resilient composition of our portfolio drove strong earnings and free cash flow despite the ongoing challenging macro-economic backdrop. Extended summer weather in many parts of the U.S. allowed for additional boating time and drove year-over-year growth in Engine P&A Products sales. However, marine dealers continue to demonstrate some caution with stocking levels as we exit the primary retail selling season in large parts of the U.S. Unit sales in the U.S. new boat market showed slight directional improvement with preliminary third quarter flat and year-to-date down 7.5%, with Brunswick growing share in both periods. We continue to monitor retail market conditions closely, increasing support for retail sales as needed, actively managing boat pipelines to achieve year-end levels within historical norms, and generating strong free cash flow which, year-to-date, is $233 million greater than in the first nine months of 2022, all while advancing our strategic initiatives, including our ACES strategy,” said Brunswick CEO David Foulkes.
Brunswick’s propulsion segment reported a 1% increase in sales, which they attributed to a favorable product mix related to increased high-horsepower outboard engine demand and higher sales to repower customers, along with annual pricing, partially offset by order declines in low and mid-range horsepower outboards and sterndrives.
The Engine Parts and Accessories segment reported a 4% decrease in sales versus the third quarter of last year. The U.S. Products business sales grew double digit percent versus prior year.
The company’s Navico Group segment reported a sales decrease of 9%, driven by reduced sales to marine OEMs as they align pipeline levels to lower retail and continued slow RV production, partially offset by strong new product performance and improved aftermarket sales trends.
The boat segment reported a 16% decrease in sales, which the company said was due to the impact of planned lower product shipments, especially of value products, as the business continues to work with its channel partners to control pipeline levels while stimulating demand through higher discount levels, partially offset by the favorable impact of pricing actions and share gains.
Brunswick also reported that Freedom Boat Club, which is part of Business Acceleration, had another strong quarter, contributing approximately 9% of segment sales.
“Although we’re entering the off-season in most of our primary selling regions, we are focused on demonstrating resilient EPS and cash flow in a challenging market, while constraining our pipelines to appropriate historical norms and delivering towards our strategic initiatives. We are excited about our recent acquisition of Fliteboard, which is proceeding to plan, preparing Navico Group for a busy holiday selling season, continuing to deliver our three Avator electric models to customers around the world, and continuing to expand Freedom Boat Club within and beyond its core markets,” said Foulkes.