Brunswick reports Q3 sales down 20.1% vs 2023
Oct 29, 2024
On October 24, Brunswick Corporation reported its Q3 financial results for 2024. The companys consolidated net sales for the third quarter reached $1.27 billion, reflecting a 20.1% decrease compared to the same period in 2023.
More concerningly, the company’s adjusted operating earnings stood at $125.9 million down 45.3%. Adjusted operating margins for the quarter were 9.9% or 450 basis points. First quarter results in 2024 had Brunswick reporting that sales were down 22% .
The propulsion segment reported a 32% drop in sales compared to the third-quarter of 2023 and this was a result of lower wholesale ordering and production adjustments although market share gains helped offset some of that impact. In contrast, the engine parts and accessories had a strong quarter reporting record operating margins for any quarter, even though sales were down slightly by 3%.
Navico Group was impacted by lower demand from marine OEM and the timing of aftermarket orders, resulting in lower sales and operating earnings compared to the same quarter in 20 23. However, the company saw slight gross and international sales and the business continues to benefit from its ongoing investments in product innovation.
In the boat segment, sales declined by 19%, reflecting lower wholesale orders, higher discounting and reduced production due to annual summer shut downs.
Freedom Boat Club on the other hand, continued to grow, contributing approximately 12% to segment sales, supported by recent acquisitions and consistent membership growth. It was noted that Freedom Boat Club’s results reflect a broader trend of boat clubs gaining popularity among consumers.
Looking ahead, David Foulkes, CEO says that Brunswick expects the 2024 US marine retail market to decline by approximately 10% and with a more significant decline in wholesale production of boats and engines.
