This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Brunswick's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Short-term financial performance continues to improve and even as we make increased investments for long time organic growth. As we'd anticipated consolidated sales were lower due to factors affecting our Marine segments and to a lesser extent our Recreational segment.

Preliminary U.S. retail boat industry demand was up in the quarter with improvements continuing in aluminum and fiberglass outboard product categories, although at a lesser rate increase in the first quarter. This is being partially offset by continuing weak demand in fiberglass sterndrive inboard categories, especially in boats larger than 30 feet for demand continues to decline. We experienced lower sales in Europe in all four of our segments.

For the total company, excluding Sealine, revenues declined about $41 million or 23% in this region. Revenues generated from our U.S. and the rest of world customers increased about 3%. Ending boat pipeline inventories remained at healthy levels and our weeks on hand as measured on a trailing 12-month retail basis declined.

Our gross margin of 26% represents an increase of 90 basis points from the prior year. Lower warranty, depreciation and pension expenses combined with successful cost reduction activities contributed to the higher gross margin.

Contrary to the first quarter, SG&A and R&D expenses in the aggregate increased by 3% as lower variable compensation expense was only partially offset by company-wide investments in growth initiatives. Finally, our lower income tax provision contributed the higher net earnings during the quarter.

For those of you, who may have printed out the slides and are flipping through those, I'll call out page numbers. We're now on Slide 5. Sales decreased by 3% in the second quarter. Sales generated by our ongoing European businesses declined by approximately $41 million.

Additionally, revenues from our Sealine boat brand, which we divested in Q3 of 2011, were approximately $20 million in the second quarter of 2011. I will comment in a few moments about some of the other major factors that affected our topline during the quarter.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs