Brunswick Corporation (BC) Bundle
A Brief History of Brunswick Corporation
Company Overview
Brunswick Corporation, founded in 1845, has evolved from a small manufacturer of billiard tables to a leading global manufacturer of recreational marine products, including boats, engines, and marine accessories. As of 2024, Brunswick operates through several segments: Propulsion, Engine Parts & Accessories (P&A), Navico Group, and Boat.
Recent Financial Performance
As of September 28, 2024, Brunswick reported a net sales decline of 20.1% in the third quarter, totaling $1.273 billion, compared to $1.594 billion in the same quarter of 2023. For the nine months ending September 28, 2024, net sales were $4.082 billion, down 19.0% from $5.040 billion in the prior year.
| Period | Net Sales (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $1,273.3 | -20.1% |
| Q3 2023 | $1,593.6 | - |
| 9M 2024 | $4,082.2 | -19.0% |
| 9M 2023 | $5,039.5 | - |
Segment Performance
The Propulsion segment faced a significant decline, reporting net sales of $485.9 million in Q3 2024, down 32.3% from $718.2 million in Q3 2023. For the nine-month period, Propulsion net sales were $1.622 billion, down 25.4% from $2.173 billion.
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| Propulsion | $485.9 | $718.2 | -32.3% |
| Engine P&A | $336.1 | $344.6 | -2.5% |
| Navico Group | $184.1 | $213.4 | -13.7% |
| Boat | $345.3 | $428.6 | -19.4% |
Operating Earnings
Operating earnings for Q3 2024 were $98.4 million, a 49.8% decrease compared to $196.1 million in Q3 2023. For the nine-month period, operating earnings fell to $367.3 million, down 41.4% from $626.6 million.
| Period | Operating Earnings (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $98.4 | -49.8% |
| Q3 2023 | $196.1 | - |
| 9M 2024 | $367.3 | -41.4% |
| 9M 2023 | $626.6 | - |
Net Earnings
Brunswick's net earnings for Q3 2024 were $44.6 million, down from $112.5 million in Q3 2023. For the nine months ended September 28, 2024, net earnings totaled $212.6 million, compared to $359.5 million for the same period in 2023.
| Period | Net Earnings (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $44.6 | -60.3% |
| Q3 2023 | $112.5 | - |
| 9M 2024 | $212.6 | -40.9% |
| 9M 2023 | $359.5 | - |
Cash Flow and Liquidity
Net cash provided by operating activities of continuing operations for the nine months ended September 28, 2024, was $137.5 million, down from $458.1 million in the same period in 2023. Cash and cash equivalents totaled $284.1 million as of September 28, 2024, a decrease from $330.9 million a year earlier.
| Period | Cash and Cash Equivalents (in millions) | Net Cash from Operating Activities (in millions) |
|---|---|---|
| September 28, 2024 | $284.1 | $137.5 |
| September 30, 2023 | $330.9 | $458.1 |
Debt and Capital Structure
As of September 28, 2024, total debt was $2.571 billion, with a debt-to-capitalization ratio of 56%, up from 54% at the end of 2023. The company has revised its share repurchase plan to approximately $200 million for 2024.
A Who Owns Brunswick Corporation (BC)
Shareholder Composition
As of 2024, Brunswick Corporation (BC) has a diverse shareholder structure. The ownership is distributed among institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Ownership Percentage (%) | Number of Shares Owned (millions) |
|---|---|---|
| Institutional Investors | 83.6 | 55.2 |
| Individual Investors | 12.4 | 8.2 |
| Company Insiders | 4.0 | 2.6 |
Major Institutional Shareholders
The top institutional shareholders of Brunswick Corporation include:
| Institution | Ownership (millions of shares) | Ownership Percentage (%) |
|---|---|---|
| The Vanguard Group | 10.5 | 15.9 |
| BlackRock, Inc. | 9.8 | 14.8 |
| State Street Corporation | 7.2 | 10.9 |
| Invesco Ltd. | 5.1 | 7.7 |
| Wellington Management Group | 4.6 | 6.9 |
Insider Ownership
Insider ownership plays a crucial role in corporate governance. As of the latest report, the following table summarizes the ownership of company executives and board members:
| Name | Position | Shares Owned (millions) | Ownership Percentage (%) |
|---|---|---|---|
| David Foulkes | CEO | 0.5 | 0.8 |
| Randall S. Altman | Senior VP & Controller | 0.3 | 0.5 |
| Board of Directors (Total) | — | 1.8 | 2.7 |
Stock Performance and Market Capitalization
As of October 28, 2024, Brunswick Corporation's stock is trading at $32.67 per share, with a total market capitalization of approximately $2.16 billion. The following table highlights key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price ($) | 32.67 |
| Market Capitalization ($ billion) | 2.16 |
| 52-Week High ($) | 42.00 |
| 52-Week Low ($) | 29.50 |
| Volume (average daily) | 1.3 million shares |
Recent Developments
Brunswick Corporation has recently expanded its operations by acquiring additional Freedom Boat Club franchise operations in Southeast Florida, enhancing its market presence and operational synergies across its brand portfolio.
Brunswick Corporation (BC) Mission Statement
Mission Overview
Brunswick Corporation's mission centers on providing innovative and sustainable solutions that enhance the recreational boating experience. The company strives to lead the marine industry by focusing on customer satisfaction and operational excellence.
Core Values
- Innovation: Continuously developing cutting-edge products and technologies.
- Sustainability: Committing to environmentally responsible practices.
- Customer Focus: Prioritizing customer needs and feedback in product development.
- Integrity: Upholding ethical standards in all business dealings.
- Teamwork: Promoting collaboration across all levels of the organization.
Financial Performance Indicators
As of September 28, 2024, Brunswick Corporation reported significant financial metrics that reflect its operational effectiveness:
| Financial Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Net Sales | $1,273.3 million | $1,593.6 million | $(320.3) million | (20.1)% |
| Gross Margin | $333.0 million | $444.7 million | $(111.7) million | (25.1)% |
| Operating Earnings | $98.4 million | $196.1 million | $(97.7) million | (49.8)% |
| Net Earnings | $44.6 million | $112.5 million | $(67.9) million | (60.3)% |
Key Strategic Initiatives
Brunswick Corporation's mission is supported by several strategic initiatives designed to enhance its market position and operational efficiency:
- Product Development: Investing in R&D to innovate and expand product lines.
- Market Expansion: Targeting emerging markets to increase global presence.
- Operational Efficiency: Streamlining operations to reduce costs and improve margins.
- Customer Engagement: Enhancing customer service and support to foster loyalty.
Market Position and Competitive Advantage
Brunswick Corporation is recognized as a leader in the marine industry, with a diverse portfolio that includes boats, engines, and marine accessories. The company’s competitive advantage stems from:
- Brand Recognition: Well-established brands that resonate with consumers.
- Innovation Pipeline: A robust pipeline of innovative products that meet evolving customer needs.
- Global Reach: Strong international distribution channels that facilitate market penetration.
Recent Developments
In 2024, Brunswick Corporation has undertaken several initiatives to align with its mission statement:
- Acquisitions: The acquisition of Fliteboard and Freedom Boat Club to enhance product offerings and market share.
- Sustainability Goals: Implementing green technologies to reduce environmental impact.
- Financial Restructuring: Adjusting financial strategies to improve liquidity and reduce debt levels.
Conclusion on Mission Alignment
Brunswick Corporation's mission statement is deeply integrated into its operational strategies, reflecting its commitment to innovation, customer satisfaction, and sustainable practices. The financial data and strategic initiatives presented highlight the company's focus on maintaining its leadership position in the marine industry.
How Brunswick Corporation (BC) Works
Business Overview
Brunswick Corporation operates in the marine industry, focusing on manufacturing and selling a wide range of boats, marine engines, and related products. As of 2024, the company is structured into several key segments:
- Propulsion
- Engine Parts and Accessories (P&A)
- Navico Group
- Boat Manufacturing
Financial Performance
For the third quarter of 2024, Brunswick reported a net sales figure of $1,273.3 million, a decrease of 20.1% compared to $1,593.6 million in the same period of 2023. For the nine months ended September 28, 2024, net sales totaled $4,082.2 million, down from $5,039.5 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | $1,273.3M | $1,593.6M | (20.1)% | $4,082.2M | $5,039.5M | (19.0)% |
| Operating Earnings | $98.4M | $196.1M | (49.8)% | $367.3M | $626.6M | (41.4)% |
| Net Earnings | $44.6M | $112.5M | (60.3)% | $212.6M | $359.5M | (40.9)% |
Segment Performance
The performance of Brunswick's segments has varied, heavily influenced by market conditions and demand fluctuations:
Propulsion Segment
The Propulsion segment's net sales for Q3 2024 were $485.9 million, down 32.3% from $718.2 million in Q3 2023. For the nine months, sales were $1,622.1 million, a decrease of 25.4% from $2,173.1 million.
Engine Parts and Accessories Segment
For Q3 2024, net sales were $336.1 million, down 2.5% year-over-year. For the nine months, sales totaled $934.6 million, decreasing by 2.9% compared to the previous year.
Navico Group Segment
The Navico Group reported net sales of $184.1 million for Q3 2024, a decline of 13.7% from the prior year. Nine-month sales were $605.1 million, down 15.8% year-over-year.
Boat Segment
The Boat segment's Q3 2024 sales were $345.3 million, down 19.4% from $428.6 million in Q3 2023. For nine months, sales were $1,205.2 million, a decrease of 23.0% from $1,564.6 million.
Cash Flow and Liquidity
Brunswick's cash flow metrics indicate a challenging liquidity environment:
| Cash Flow Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $125.0M | $450.3M |
| Capital Expenditures | $(137.1M) | $(233.1M) |
| Net Cash Used for Investing Activities | $(154.0M) | $(309.9M) |
| Net Cash Used for Financing Activities | $(147.0M) | $(402.9M) |
Debt and Financial Health
As of September 28, 2024, Brunswick's total debt was $2,571.9 million, consisting of short-term debt of $199.2 million and long-term debt of $2,372.7 million. The company maintained compliance with financial covenants associated with its debt.
Shareholder Equity
Brunswick's total shareholders' equity as of September 28, 2024, was $2,034.3 million, reflecting changes due to net earnings and stock repurchases:
| Shareholder Equity Components | Amount (in millions) |
|---|---|
| Common Stock | $76.9 |
| Additional Paid-in Capital | $398.0 |
| Retained Earnings | $3,724.9 |
| Treasury Stock | $(2,137.8) |
| Accumulated Other Comprehensive Loss | $(27.7) |
| Total Shareholders' Equity | $2,034.3 |
How Brunswick Corporation (BC) Makes Money
Overview of Revenue Streams
Brunswick Corporation generates revenue through multiple business segments, primarily including Propulsion, Engine Parts & Accessories (P&A), Navico Group, and the Boat segment. As of 2024, these segments have shown varying performance influenced by market trends and operational efficiencies.
Financial Performance
For the nine months ended September 28, 2024, Brunswick reported net sales of $4,082.2 million, a decrease of 19.0% from $5,039.5 million in the same period of 2023. The operating earnings for the same period were $367.3 million, down 41.4% from $626.6 million in the prior year.
| Metric | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $4,082.2 million | $5,039.5 million | $(957.3 million) | (19.0%) |
| Operating Earnings | $367.3 million | $626.6 million | $(259.3 million) | (41.4%) |
Segment Performance
The following outlines the performance of each key segment for the nine months ended September 28, 2024:
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Propulsion | $1,622.1 million | $2,173.1 million | $(551.0 million) | (25.4%) |
| Engine P&A | $934.6 million | $962.1 million | $(27.5 million) | (2.9%) |
| Navico Group | $605.1 million | $718.5 million | $(113.4 million) | (15.8%) |
| Boat | $1,205.2 million | $1,564.6 million | $(359.4 million) | (23.0%) |
Geographic Distribution of Sales
Brunswick's sales are also influenced by geographic distribution, with significant contributions from the United States, Europe, and Asia-Pacific regions. The following table summarizes the geographic sales distribution for the nine months ended September 28, 2024:
| Region | Net Sales (2024) | Net Sales (2023) | Change ($) |
|---|---|---|---|
| United States | $3,015.0 million | $3,847.2 million | $(832.2 million) |
| Europe | $609.2 million | $689.1 million | $(79.9 million) |
| Asia-Pacific | $268.3 million | $311.7 million | $(43.4 million) |
| Canada | $233.1 million | $331.8 million | $(98.7 million) |
| Rest-of-World | $241.4 million | $238.5 million | $2.9 million |
Cost Structure and Profitability
Brunswick's cost of sales for the nine months ended September 28, 2024, was $2,984.6 million, resulting in a gross margin of $1,097.6 million (a gross margin percentage of 26.9%). The selling, general, and administrative expenses totaled $566.2 million.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cost of Sales | $2,984.6 million | $3,616.9 million |
| Gross Margin | $1,097.6 million | $1,422.6 million |
| SG&A Expenses | $566.2 million | $613.5 million |
Cash Flow and Liquidity
Brunswick's cash flow from operating activities for the nine months ended September 28, 2024, was $125.0 million, down from $450.3 million in the prior year. The company reported cash and cash equivalents of $284.1 million as of September 28, 2024.
| Metric | 2024 | 2023 |
|---|---|---|
| Cash Flow from Operating Activities | $125.0 million | $450.3 million |
| Cash and Cash Equivalents | $284.1 million | $330.9 million |
Future Outlook
Brunswick continues to focus on operational efficiencies and market share gains amidst a challenging environment. The company is adapting its product offerings and marketing strategies to cater to evolving consumer preferences in the boating industry.
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Article updated on 8 Nov 2024
Resources:
- Brunswick Corporation (BC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Brunswick Corporation (BC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Brunswick Corporation (BC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.