Brunswick Corporation reports net sales of US$985.9 million, representing an overall sales increase of 17 percent, through the first three months of 2011.
“Our Marine Engine segment performed well across its entire product offering, including its parts and accessories business,” said Brunswick CEO Dustan McCoy. “Shipments into our dealer pipeline continue to be consistent with our strategy to closely match wholesale and retail demand units on an annual basis. The higher quarterly wholesale shipments reflect our plan that retail demand in 2011 will be stable, compared to the declining market in 2010, as well as our plan to ensure that our dealers have the appropriate levels of inventory to meet early season demand.”
Consisting of the Mercury Marine Group, Brunswick's Marine Engine segment (including the marine parts and accessories businesses) reported net sales of $520.5 million in the first quarter of 2011, up 17 percent from $445.7 million in the first quarter of 2010. International sales, which represented 43 percent of total segment sales in the quarter, increased by six percent. Sales were reported to be higher across all of the segment's main operations, with the segment's global sterndrive engine product category experiencing the greatest percentage sales growth.
“Mercury's manufacturing facilities continued to increase production during the quarter in response to customer requirements,” notes a Brunswick news release. “Higher sales, the combined effect of cost reductions, increased fixed-cost absorption and improved operating efficiencies, as well as a gain on the sale of a distribution facility all had a positive effect on operating earnings during the quarter.”
Brunswick's Boat segment, comprised of 16 boat brands, reported net sales of $283.6 million for the first quarter of 2011, an increase of 16 percent compared with $243.6 million in the first quarter of 2010. International sales, which represented 37 percent of total segment sales in the quarter, increased by 18 percent during the period. For the first quarter of 2011, the Boat segment reported an operating loss of $3.8 million, including restructuring, exit and impairment charges of $1.0 million. This compares with an operating loss of $26.7 million, including restructuring charges of $4.1 million, in the first quarter of 2010.
Boat segment production and wholesale shipments were also reported to have increased compared with the first quarter of 2010.