Lake Forest, IL-based Brunswick Corporation today reported its financial results for Q4 2009.
The Marine Engine segment, consisting of the Mercury Marine Group, reported net sales of $302.4 million in the fourth quarter of 2009, down 11 percent from $340.2 million in the year-ago fourth quarter. International sales, which represented 51 percent of total segment sales in the quarter, declined by three percent. Sales were lower across all Marine Engine operations, with sterndrive engines experiencing a greater sales decline than outboard engines. Sales from the segment's domestic marine service, parts and accessories businesses, which represented 22 percent of total segment sales in the quarter, were down mid-single digits, as boat usage and the purchase of parts and accessories remained relatively stable.
Brunswick's Boat Group, representing 17 different brands, reported net sales of $153.4 million for the fourth quarter of 2009, down 38 percent compared with $248.0 million in the fourth quarter of 2008. International sales, which represented 40 percent of total segment sales in the quarter, decreased by 51 percent during the period. For the fourth quarter of 2009, the Boat segment reported an operating loss of $131.6 million, including impairment and restructuring charges of $58.3 million. This compares with an operating loss of $59.4 million, including impairment and restructuring charges of $39.4 million, in the fourth quarter of 2008.
Boat manufacturing facilities also began to ramp up production during the quarter to address inventory requirements of their dealers, although production levels remained below the prior year quarter. Lower sales, reduced fixed-cost absorption on lower production volumes, higher discounts to support retail sales by dealers, higher impairment and restructuring charges, as well as a reversal of variable compensation and defined contribution retirement accruals that benefited the fourth quarter of 2008, had an adverse effect on operating earnings comparisons, which were partially offset by the Boat Group's expense reductions.
For the year ended Dec. 31, 2009, Brunswick reported net sales of $2,776.1 million, down from $4,708.7 million a year earlier, and an operating loss of $570.5 million. In 2008, the company had an operating loss of $611.6 million.
For 2009, the company reported a net loss of $586.2 million, or $6.63 per diluted share, as compared with a net loss of $788.1 million, or $8.93 per diluted share, for 2008.
For the full press release, click here: www.brunswick.com/news/newsstories/release/1/1380189.php