Outboard boats and engines drive Brunswick growth
US marine manufacturer records 10% increase in sales for 2016.
US-based Brunswick Corporation, home to boating brands such as Mercury Marine as well as well-known boats such as Bayliner, Sea Ray and Rayglass, saw net sales increase by 10% in 2016. The company recorded total sales of US$4.5 billion, up from US$4.1 billion the previous year.
The company reported operating earnings of US$409 million for the year, up 23% compared with US$332 million in 2015.
Brunswick chairman and CEO Mark Schwabero said the results reflected strong growth in both fibreglass outboard boats and marine parts and accessories whilst aluminium boats, outboard engines and fibreglass sterndrive/inboard boats delivered a “solid” performance.
“Our results in 2016 represent the seventh consecutive year of strong improvements in operating performance,” said Schwabero. “These outstanding results reflect the continued execution of our business strategy by our global workforce.”
Sales in the marine segment increased from US$3.3 billion in 2015 to US$3.5 billion in 2016, a 6% increase. Revenue in the Asia-Pacific region, which accounts for 7% of Brunwick's total marine revenue, grew by 5% during 2016.
“The U.S. marine market exhibited solid fundamentals and growth, which are supported by stable boating participation, favourable replacement cycle dynamics and innovative products being introduced throughout the marketplace,” said Schwabero.
“Overall, international marine markets were challenging, including weak demand in certain markets such as Latin America, the Middle East and Africa as well as Canada. Our product successes in both our engine and boat segments have enabled continued market share gains and mix benefits.”
For the year ahead, the company is aiming for 6-8% revenue growth with a “solid improvement” in operating margins.