Brunswick Corporation reported strong financial results for the second quarter of 2010, including total net sales of $1,014.7 million, up 41 percent over 2009, and net earnings of $13.7 million, or $0.15 per diluted share (all figures $US).
The company declared operating earnings of $55.7 million, a $201.1 million improvement from 2009, based on increased production and higher wholesale shipments resulting from low beginning-of-year marine dealer inventories.
“The continued successful execution of our strategic initiatives over the past several quarters was a key factor in our improved second quarter results,” said Brunswick's Chairman and Chief Executive Officer Dustan E. McCoy in a company press release. “Historically low marine dealer inventories as we entered the year led to improved wholesale shipments. This, combined with significant fixed-cost reductions achieved over the past two years, enabled us to report our second consecutive quarterly operating profit.”
Brunswick's Marine Group reported net sales of $579.2 million in the second quarter of 2010, up 39 percent from the $415.2 million reported for Q2 2009. International sales, which represented 41 percent of total segment sales in the quarter, increased by 28 percent. The strongest gains were reported in the segment's sterndrive engine business, as a result of “higher sales, lower bad debt expense, fixed-cost reductions, increased fixed-cost absorption, improved operating efficiencies, lower restructuring, exit and impairment charges and reduced pension expense.” For the quarter, the Marine Engine segment reported operating earnings of $89.2 million, including restructuring charges of $2.1 million. By comparison, for the second quarter of 2009 the Marine Group lost $7.8 million.
The Brunswick Boat Group, representing 16 brands, reported net sales of $296.6 million for the second quarter of 2010, an increase of 114 percent compared against $138.8 million for the second quarter of 2009. International sales, which represented 38 percent of total segment sales in the quarter, increased by 64 percent during the period. While the boat segment still reported an operating loss of $23.6 million for the quarter, it compares favourably against the $107.9 million loss reported for the second quarter of 2009.