New Brunswick growth lower than forecast

Brunswick Group Quicksilver Boat and Mercury Motor

Brunswick Group, owner of Mercury and Quicksilver among others, presented its results for the 3rd quarter 2016. Although boating activity is holding up well, markets are showing contrasting trends.

Growth despite everything

Although revenues of 1.09 billion dollars in the third quarter of 2016 are 20 million lower than forecast, they remain on the rise. This is mainly attributable to the acquisition of the group's fitness business and lower engine sales. The marine sector has also seen a decline in demand in some markets.

For Mark Schwabero, CEO of Brunswick"I would say if we look at how 2016 is going, that we saw a very good growth in the 1st quarter, a reasonable growth in the 2nd quarter and that it starts to calm down over the second half of the year"

Boats: Dynamic Europe and decline in emerging countries

Boat sales for the Brunswick Group reached $307 million in the third quarter of 2016, up 13%. Sales outside the United States represented 21% of the total volume, up 11% compared to 2015. The group's three main brands benefited from this growth. However, there is a lower proportion of large inboard units. Operating profits for the Boat business increased by 6% compared to 2015 and the operating margin is 2.2%.

Boat sales increased by 13% in Europe at constant exchange rates, while Brazil posted a sharp decline and Africa and the Middle East remained weak.

Engines: Outboard motors boost activity

Brunswick marine engines posted a 6% increase in sales to $625.7 million. 31% of the engines were sold outside the United States. Operating profits for the Brunswick engine business were $109.5 million in the third quarter of 2016.

Sales growth was driven by Mercury outboard motors and spare parts, while the decline in sterndrive activity slowed overall growth.

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