Mettawa, Ill.-based Brunswick reports that it had sales of $965.5 million in the first quarter of the year, an 8 percent drop over the previous quarter last year. A strong start to the year, the company says, was thwarted by the spread of the COVID-19 pandemic.
“As we report our first quarter earnings, we must first recognize the immense impact that the COVID-19 pandemic has had on our employees, business partners, and the communities in which we operate,” said Brunswick CEOfficer David Foulkes. “Brunswick and our employees have responded in many ways, including producing equipment used by first responders, donating PPE to local hospitals, and supporting charitable organizations. I could not be more proud of our employees around the world and want to thank them and their families for all their hard work, sacrifice, and giving during this challenging time.”
The company’s parts and accessories segment, which includes RV and marine distributor Land ‘N’ Sea, reported lower sales and earnings in the quarter as strong growth at power products was offset by lower sales in the other businesses.
Foulkes added that prior to COVID-19 hitting the U.S., the country’s marine market overall was exhibiting a strong start to the year.
“Mercury had another strong showing at the Miami International Boat Show and continued to gain significant share in outboard propulsion, and our parts and accessories businesses remained steady, with outperformance at Power Products (division),” Foulkes said. “Our premium boat brands, led by Boston Whaler and Sea Ray, leveraged strong early-season boat shows into success at retail, and Freedom Boat Club opened many new locations and recorded some of its busiest weekends in the history of its operations.”
The coronavirus forced many of the company’s facilities to halt production for a time, he noted, but almost all of them had reopened by April.
Looking toward the remainder of 2020, Foulkes says he expects the outlook to improve as the pandemic subsides in the U.S., and he added that one bright spot through recent months has been the company’s parts and accessories business, which continues to perform well.
“While we clearly recognize and are responding to the very significant challenges this crisis is presenting, we are encouraged by fact that the majority of U.S. states now include boating, with some restrictions, in the list of acceptable recreational activities, by the progressive reopening of more boat dealerships, and by recent increases in online activity and lead generation related to our products.,” Foulkes said.
