Brunswick Corp. reports sales decreases for Q1 2024

Brunswick Corporation recently reported results for the first quarter of 2024, during an earnings call on April 25, 2024.

For the first quarter of 2024, Brunswick reported consolidated net sales of $1,365.0 million, down from $1,743.6 million in the first quarter of 2023. Brunswick Corp. said first quarter sales were below prior year as the impact of continued measured wholesale ordering by dealers and OEMs, coupled with higher discounts in some business segments, was only partially offset by annual price increases, market share gains, and benefits from well-received new products.

“Our businesses delivered solid results, consistent with expectations, as our continued market share gains, benefits from a wealth of outstanding new products, and comprehensive cost control measures resulted in financial performance in-line with estimates, despite continued economic uncertainty,” Brunswick Corporation CEO David Foulkes said. “Our early season internal boat unit retail performance is tracking with our initial outlook of flat to 2023, with boat show results slightly above prior year levels on a unit basis and with a richer mix of premium products. We continue to support retail sales with levels of marketing and promotions appropriate to the environment, while successfully managing field inventory to target levels ahead of the prime selling season. Marine dealers, manufacturers and retailers continue to demonstrate caution with early-season wholesale ordering patterns, resulting in reduced shipment rates across our product businesses as compared to the first quarter of 2023 in which pipelines were being filled. During the quarter, we successfully completed a planned debt issuance of $400 million to cover the refinance of our only near-term debt, further solidifying our cash position and balance sheet.”

Brunswick Corp. Q1 2024 by segment:

The company’s Propulsion segment reported a 23% decrease in sales resulting from the enterprise factors listed above, partially offset by continued market share gains in outboard engines along with the carry-over impact of annual pricing.

The Engine Parts and Accessories segment reported a 9% decrease in sales versus the same period last year. The products business sales were down 3%, and distribution business sales were down 13%, with both businesses growing sales sequentially compared to the fourth quarter of 2023.

Brunswick’s Navico Group segment reported a sales decrease of 24%, driven by reduced sales to marine OEMs as they moderate orders to control the pipeline of their current model-year products, partially offset by strong new product momentum and slightly improved RV sales trends.

The Boat segment reported a 26% decrease in sales resulting from softer wholesale orders, as its channel partners continue to order cautiously ahead of the model-year change-over, partially offset by the favorable impact of carry-over pricing and share gains. Freedom Boat Club had another strong quarter, contributing approximately 9% of segment sales.

“Strong performance across our businesses allowed our first quarter performance to match expectations. Despite our year-to-date internal boat unit retail sales being flat to 2023, the continued economic uncertainty is resulting in cautious ordering patterns by our channel partners, making the rate and timing of wholesale acceleration and the balance of peak-season wholesale sales between the second and third quarters more difficult to predict. Despite the challenging conditions, we remain focused on moving forward with our new product plans and growth initiatives and driving resilient EPS and free cash flow, while continuing to balance production to support retail sales while managing pipelines,” said Foulkes.

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