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Brunswick Corp. (NYSE:BC) nearly reached $1 billion in sales in the fourth quarter ended Dec. 31, 2015, which marked the end of Chairman and CEO Dusty McCoy's career at the Lake Forest, IL-based maker of Sea Ray boats, Mercury motors and Life Fitness exercise equipment.
Since the 2008-09 recession, McCoy has overseen a major overhaul of Brunswick Corp.'s sprawling boat manufacturing operations, sold its bowling business and launched a major expansion at its Fitness segment that included the Jan. 20 acquisition of the strength training company Cybex. He will retire from Brunswick in two weeks after attending the 75th annual Miami International Boat Show.
Sales at the Marine Engine segment, which consists of the Mercury marine engine unit and sundry parts and accessories businesses, reported net sales of $474.7 million, up 2 percent from the fourth quarter of 2014. Operating margin grew 200 basis points to 8.8 percent.
At the Boat segment, which manufactures and markets boats under Bayliner, Boston Whaler, Crestliner and 11 other brand names, net sales were $336 million, up 14 percent. McCoy said that was more than twice the 6 percent industry-wide growth rate. Operating margin improved to 0.8 percent, up 220 basis points.
The growth came despite slowing sales to oil producing regions, including parts of Canada, the Mideast and Russia. In Texas, boat sales actually grew faster than the country as a whole.
"Net-net as we look forward, low fuel prices are a real benefit to us, because it keeps people on the water for longer periods of time, which will benefit our strong P&A business," McCoy said.
McCoy said Brunswick's Meridian and Sea Ray boats accounted for virtually all of the growth in large motor yacht category during the quarter. CFO Bill Metzger said he has seen no evidence lenders are tightening credit requirements for consumers or dealers.
Looking ahead, Brunswick continues to expand its manufacturing capacity at Marine Engines to keep up with greater than expected demand for Mercury's new 350 and 400 outboard engines.
Entire Article: http://www.sportsonesource.com/news/article_home.asp?section=4&id=59278&Prod=3
Since the 2008-09 recession, McCoy has overseen a major overhaul of Brunswick Corp.'s sprawling boat manufacturing operations, sold its bowling business and launched a major expansion at its Fitness segment that included the Jan. 20 acquisition of the strength training company Cybex. He will retire from Brunswick in two weeks after attending the 75th annual Miami International Boat Show.
Sales at the Marine Engine segment, which consists of the Mercury marine engine unit and sundry parts and accessories businesses, reported net sales of $474.7 million, up 2 percent from the fourth quarter of 2014. Operating margin grew 200 basis points to 8.8 percent.
At the Boat segment, which manufactures and markets boats under Bayliner, Boston Whaler, Crestliner and 11 other brand names, net sales were $336 million, up 14 percent. McCoy said that was more than twice the 6 percent industry-wide growth rate. Operating margin improved to 0.8 percent, up 220 basis points.
The growth came despite slowing sales to oil producing regions, including parts of Canada, the Mideast and Russia. In Texas, boat sales actually grew faster than the country as a whole.
"Net-net as we look forward, low fuel prices are a real benefit to us, because it keeps people on the water for longer periods of time, which will benefit our strong P&A business," McCoy said.
McCoy said Brunswick's Meridian and Sea Ray boats accounted for virtually all of the growth in large motor yacht category during the quarter. CFO Bill Metzger said he has seen no evidence lenders are tightening credit requirements for consumers or dealers.
Looking ahead, Brunswick continues to expand its manufacturing capacity at Marine Engines to keep up with greater than expected demand for Mercury's new 350 and 400 outboard engines.
Entire Article: http://www.sportsonesource.com/news/article_home.asp?section=4&id=59278&Prod=3
