Brunswick Corp. has reported results for the fourth quarter and full year of 2019, showing consolidated net sales of $4.1 billion. 2018 net sales included $49.4 million of sales related to sport yacht and yachts, which have been excluded from as adjusted reporting.
For the fourth quarter of 2019, Brunswick – parent company of Land ’N’ Sea Distributing – reported consolidated net sales of $917.6 million, down from $961.1 million in 2018, which included $5.4 million of sales related to sport yacht and yachts.
“Our 2019 performance demonstrated the strength and resilience of our marine-focused portfolio,” said Brunswick CEO David Foulkes. “We expanded gross and operating margins and delivered a 10th consecutive year of adjusted EPS growth, despite a weaker than anticipated marine market in the first- half of the year. … The transformational changes we made to our business in 2019 reinforced our position as the market leader in the marine industry and set us up for further margin expansion and revenue growth in 2020 and beyond.”
Investing and financing activities resulted in a net cash usage of $887.8 million during 2019, and included $400 million of share repurchases, $232.6 million of capital expenditures, $117.4 million of net outflows from retirements and issuances of debt, $73.4 million of dividend payments, and $64.1 million related to an acquisition.
The marine engine segment, which manufactures and distributes marine propulsion systems and related parts and accessories, reported a slight sales decrease in the quarter as continued strong demand for higher horsepower outboard engine categories and solid growth at power products was offset by forecasted reductions in outboard engines 150 horsepower and below, as well as lower sales of sterndrive engines.
“For 2020, we project U.S. marine industry retail unit demand for the year to be flat to
slightly up versus 2019,” said Foulkes. “With this retail performance, wholesale shipments are expected to be higher as a result of the 7 percent unit pipeline reductions achieved in 2019. We
anticipate continued growth and share gains in higher horsepower engine categories bolstered by our completed capacity expansion efforts. Boat segment sales in 2020 will also benefit from significant new product introductions as well as our continued focus on product with more technology features and content.”