Brunswick/Merc report earnings
01-30-2003, 08:43 AM
#1
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Brunswick/Merc report earnings
The Marine Engine segment, consisting of the Mercury Marine Group and Brunswick New Technologies, reported sales of $402.8 million in the fourth quarter of 2002, up 38 percent from $292.1 million in the year-ago fourth quarter. Operating earnings in the fourth quarter more than doubled to $16.7 million versus $7.9 million, and operating margins were 4.1 percent compared with 2.7 percent for the same quarter last year.
For the full year, Marine Engine segment sales rose 9 percent to $1,705.2 million, and operating earnings were down 1 percent to $170.9 million. Operating margins were 10.0 percent versus 11.1 percent in 2001.
"During 2001, we reduced wholesale shipments to reduce pipeline inventories. While we continued to experience weakness in the retail markets in 2002, our boat builder customers replenished inventories at higher rates," Buckley said. "As a result, domestic sterndrive engine sales were up 16 percent to $441 million, and domestic outboard engine sales rose 9 percent to $465 million. Our international operations turned in a solid performance reporting an 8 percent sales gain to $508 million. Domestic parts and accessories sales increased 7 percent for the year to $243 million. During the year we continued to invest in several initiatives for future growth, including Project "X", our game changing, high horsepower four-stroke outboard, as well as integrated marine electronics products. Spending for these efforts, along with the shift in product mix to low-emission outboard engines, had an adverse affect on operating margins."
"While wholesale shipments improved, they were still below depressed retail sales, thus further reducing field inventories. Currently, inventory in the field represents 23 weeks of supply, compared with 24 weeks of supply at the same time a year ago," Buckley noted.
Boat Segment
The Brunswick Boat Group comprises the Boat segment and includes the Sea Ray, Bayliner, Maxum, Hatteras, Sealine, Meridian, Boston Whaler, Trophy, Baja and Princecraft boat brands. The Boat segment reported sales for the fourth quarter of $344.2 million, up 43 percent compared with $240.7 million in the year-ago fourth quarter. The Boat segment had operating earnings of $4.5 million compared with an operating loss of $16.6 million in the fourth quarter last year.
For 2002, Boat segment sales were up 12 percent to $1,405.3 million, and operating earnings rose 5 percent to $19.0 million. The sales gain was driven by the incremental sales from Hatteras, Sealine and Princecraft, all acquired in 2001. Excluding the acquired companies, Boat segment sales declined 2 percent. Operating margins were 1.4 percent in 2002 and 2001.
"Our Boat Group had a number of significant accomplishments in 2002," Buckley noted. "The Bayliner brand was re-established as the leader in family boating with introduction of the Bayliner 175, an entry level boat, engine and trailer package with a suggested retail price of $9,995. We also launched Meridian yachts, a new line of pilothouse, sedan and aft cabin models ranging from 34 to 58 feet to meet the needs of boaters who spend more time on the water than at the dock."
"For the industry, boats over 30 feet faced the most pressure in 2002 with a reported 28 percent decline at retail. The weak market for larger boats had the greatest impact on our Sea Ray division, which reduced wholesale shipments in an effort to keep pipeline inventories in balance. During the year we also started up our new manufacturing plant in Mexico and continued the reinvention of our US Marine division. Costs associated with these actions, along with the Meridian launch and lower production at Sea Ray, adversely affected operating margins for the year," Buckley added.
"While retail market conditions remain sluggish, it is important to keep a close eye on pipeline inventories. Our wholesale shipments continued to track below retail sales. Consequently, field inventories currently represent 28 weeks of supply, compared with 32 weeks at this time last year," Buckley commented.
For the full year, Marine Engine segment sales rose 9 percent to $1,705.2 million, and operating earnings were down 1 percent to $170.9 million. Operating margins were 10.0 percent versus 11.1 percent in 2001.
"During 2001, we reduced wholesale shipments to reduce pipeline inventories. While we continued to experience weakness in the retail markets in 2002, our boat builder customers replenished inventories at higher rates," Buckley said. "As a result, domestic sterndrive engine sales were up 16 percent to $441 million, and domestic outboard engine sales rose 9 percent to $465 million. Our international operations turned in a solid performance reporting an 8 percent sales gain to $508 million. Domestic parts and accessories sales increased 7 percent for the year to $243 million. During the year we continued to invest in several initiatives for future growth, including Project "X", our game changing, high horsepower four-stroke outboard, as well as integrated marine electronics products. Spending for these efforts, along with the shift in product mix to low-emission outboard engines, had an adverse affect on operating margins."
"While wholesale shipments improved, they were still below depressed retail sales, thus further reducing field inventories. Currently, inventory in the field represents 23 weeks of supply, compared with 24 weeks of supply at the same time a year ago," Buckley noted.
Boat Segment
The Brunswick Boat Group comprises the Boat segment and includes the Sea Ray, Bayliner, Maxum, Hatteras, Sealine, Meridian, Boston Whaler, Trophy, Baja and Princecraft boat brands. The Boat segment reported sales for the fourth quarter of $344.2 million, up 43 percent compared with $240.7 million in the year-ago fourth quarter. The Boat segment had operating earnings of $4.5 million compared with an operating loss of $16.6 million in the fourth quarter last year.
For 2002, Boat segment sales were up 12 percent to $1,405.3 million, and operating earnings rose 5 percent to $19.0 million. The sales gain was driven by the incremental sales from Hatteras, Sealine and Princecraft, all acquired in 2001. Excluding the acquired companies, Boat segment sales declined 2 percent. Operating margins were 1.4 percent in 2002 and 2001.
"Our Boat Group had a number of significant accomplishments in 2002," Buckley noted. "The Bayliner brand was re-established as the leader in family boating with introduction of the Bayliner 175, an entry level boat, engine and trailer package with a suggested retail price of $9,995. We also launched Meridian yachts, a new line of pilothouse, sedan and aft cabin models ranging from 34 to 58 feet to meet the needs of boaters who spend more time on the water than at the dock."
"For the industry, boats over 30 feet faced the most pressure in 2002 with a reported 28 percent decline at retail. The weak market for larger boats had the greatest impact on our Sea Ray division, which reduced wholesale shipments in an effort to keep pipeline inventories in balance. During the year we also started up our new manufacturing plant in Mexico and continued the reinvention of our US Marine division. Costs associated with these actions, along with the Meridian launch and lower production at Sea Ray, adversely affected operating margins for the year," Buckley added.
"While retail market conditions remain sluggish, it is important to keep a close eye on pipeline inventories. Our wholesale shipments continued to track below retail sales. Consequently, field inventories currently represent 28 weeks of supply, compared with 32 weeks at this time last year," Buckley commented.
Platinum Member
01-31-2003, 10:42 AM
#5
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When are you all going to stop giving your hard earned money to these companies for parts increasing thier profits just because they build a poor product.
BOB
PULSE DRIVE THE ONLY WAY TO GO. NO MORE BROKEN DRIVES FOR ME.
BOB
PULSE DRIVE THE ONLY WAY TO GO. NO MORE BROKEN DRIVES FOR ME.
Last edited by import; 01-31-2003 at 10:57 AM.
