Brunswick reports double-digit sales growth in 2011
January 26, 2012
Filed under News, Top Stories
LAKE FOREST, Ill. – Brunswick Corporation is reporting a year-over-year increase in net sales of 8 percent in the fourth quarter of 2011 and an increase in net sales of 10 percent in 2011 compared to 2010.
For fiscal year 2011, Brunswick reported net sales of $3,748.0 million, up 10 percent from $3,403.3 million over the same period of 2010. Operating earnings for 2011 were up $176.1 million to $192.4 million in 2011, compared to $16.3 million over the same period of 2010. The 2011 earnings figure includes $22.7 million of restructuring, exit and impairment charges, and the 2010 figure included $62.3 million of restructuring, exit and impairment charges.
Brunswick Chairman and CEO Dustan E. McCoy said in a statement that market share gains across all markets as well as other improvements helped Brunswick in the fourth quarter and helped the company reduce its net debt to $185 million.
Brunswick’s marine engine and boat segments were up 6 and 20 percent respectively in the fourth quarter of 2011 against the same period of 2010.
The marine engine segment, which consists of the Mercury Marine Group including Brunswick’s marine parts and accessories businesses, reported net sales of $373.3 million in the fourth quarter of 2011. U.S. sales, which represented 52 percent of total segment sales in the quarter, increased by 10 percent, while international sales decreased by 2 percent. For the quarter, the marine engine segment reported an operating loss of $2.3 million, which included $3.8 million of restructuring and impairment charges. This compares with an operating loss of $17.4 million in the fourth quarter of 2010, which included $7.4 million of restructuring charges.
Brunswick’s boat segment, which comprises the Brunswick Boat Group and includes 15 North American-based boat brands, reported net sales of $196.8 million for the fourth quarter of 2011. U.S. sales, which represented 69 percent of total segment sales in the quarter, increased by 34 percent. International sales decreased by 10 percent, which was driven largely by the absence of sales related to the Sealine brand, which was divested in the third quarter of 2011. For the fourth quarter of 2011, the boat segment reported an operating loss of $28.4 million, which included a gain from restructuring activities of $0.9 million. This compares with an operating loss of $69.3 million, including restructuring charges of $10.0 million, in the fourth quarter of 2010.
Boat segment production and wholesale unit shipments increased during the quarter, compared with the fourth quarter of 2010, in response to solid retail demand for Brunswick’s boat brands, the company said. Revenue growth from the increase in wholesale unit shipments was partially offset by the absence of sales from the Sealine brand. A greater sales mix of smaller boats also had a negative effect on sales during the quarter. The decline in operating losses reflects higher sales, increased fixed-cost absorption, cost reductions and lower restructuring costs. Partially offsetting these factors were a less favorable product mix and higher variable compensation costs.
Click here for the complete report: Brunswick Corporation : Brunswick Reports Fourth Quarter Results
