Brunswick Corp., parent company of distributor Land ’N Sea, reported its revenue grew 9 percent during fiscal year 2017, and net sales grew 14 percent in the boat segment and 8 percent in the marine engine segment for the year.
The company announced fourth quarter and fiscal year results today. It was the first time Brunswick classified Sea Ray as “discontinued operations” after announcing the sale of the brand Dec. 5.
This story originally appeared in Trade Only Today.
Operating earnings dropped 13 percent on a generally accepted accounting principles basis, and adjusted operating earnings were up 5 percent versus fiscal year 2016.
During the fourth quarter, the marine engine segment reported net sales of $564.6 million, up 13 percent from $500.2 million in the fourth quarter of 2016.
International sales, which represented 31 percent of total segment sales in the quarter, were up 6 percent, compared to the prior year period. Operating earnings were $57.5 million for the quarter, compared to $51 million in the fourth quarter of 2016.
Strong growth in the outboard and the parts and accessories businesses led to the sales increases in the quarter, the company said.
The improvement in operating earnings in the fourth quarter was primarily the result of higher net sales and favorable changes in product mix, partially offset by planned increases in growth investments in advance of new product introductions and unfavorable adjustments related primarily to product warranty and the resolution of litigation.
The boat segment reported net sales of $283.2 million for the fourth quarter of 2017, up 15 percent from $245.3 million in the fourth quarter of 2016.
International sales, which represented 27 percent of total segment sales in the quarter, increased by 14 percent, compared to the previous year.