Brunswick grows revenue, earnings in second quarter
By Jonathan Sweet
July 24, 2014
Filed under News
Brunswick Corp. reported higher sales in the second quarter as the marine industry rebounded from the poor start to 2014.
Overall, net sales for the company increased by 4 percent versus the second quarter of 2013, with sales up in the marine segments as well.
The marine engine group reported net sales of $652.4 million, up 3 percent from 2013, while the boat segment reported sales of $324.1 million, an increase of 4 percent.
For the year, marine sales are basically flat due to a poor first quarter, said CEO Dusty McCoy, but sales are continuing to increase as the year goes on.
“June was a good month,” McCoy said. “So far, July is feeling like June.”
For the quarter, engine sales were up 3 percent in the United States, up 5 percent in Europe and up 1 percent for the rest of the world, with gains in outboards being partially offset by declines in sterndrive engine sales.
With new engines entering production at Mercury, McCoy said the company is expecting overall growth of 10 to 12 percent in the second half of the year.
Boat sales were up 7 percent in the United States and up 27 percent in Europe, but down 9 percent for the rest of the world for the quarter in dollars. Overall unit retail sales and wholesale shipments were down 2 percent, but higher price points helped to push revenue higjer.
Brunswick is also calling for growth in the boat segment in the second half of 2014 as new products from Sea Ray, Bayliner and other brands ramp up production.
Getting product into the field has been a challenge for the company, McCoy said, as the company makes sure it gets product right.
“That’s more of an internal, operational production issue,” McCoy said. “Now that we’ve got the product, we need to make sure we build it, get it into the field and that it’s good, strong product.”
Outboard boats continue to be strong for Brunswick, as well as sterndrive boats over 30 feet, while sterndrives under 30 ft. are still struggling.
“Under 30 feet with an outboard on it is doing well,” McCoy said. “Under 30 ft. with a sterndrive on it continues to be a tough place to be. The over 30 feet is being driven by a lot of great new product. That includes ourselves and other builders putting a lot of great new product in the market.”