Brunswick's 3Q net down 57 pct amid restructuring
LAKE FOREST, Ill. -- Boat and sporting-goods maker Brunswick Corp. posted a 57 percent drop in third-quarter earnings Thursday as large restructuring and other charges limited its gain.
The company said net earnings for the July-through-September period were $2 million, or 2 cents per share. That was down from $4.7 million, or 5 cents per share, a year earlier.
Revenue edged up 1 percent to $884.8 million from $876.7 million despite a 19 percent drop in sales in Europe.
Analysts polled by FactSet were expecting earnings of 2 cents per share on revenue of $936.7 million.
The results included $28.2 million of restructuring, exit and impairment charges, just over double the amount from a year ago, as the Lake Forest, Ill.-based continues to reshape itself to reflect weakened demand. Boat and boat part makers were hit particularly hard during the recession, when people cut back on big-ticket purchases.
The bright spot in the third quarter was the division containing its marine parts and accessories businesses, which posted an 11 percent increase in sales to $503.5 million.
The company's 18-brand boat group saw sales decline 7 percent to $205.8 million in the quarter.
Also reporting lower sales were its fitness equipment unit, down 3 percent, and bowling and billiards unit, down 6 percent.
"As we continue to execute our strategic growth initiatives, as well as focus on cost reductions and operating efficiencies throughout our organization, we expect to be able to demonstrate improved sales and operating earnings during the final quarter of the year as compared to 2011, resulting in strong full-year earnings growth," CEO Dustan McCoy said in a statement.
Brunswick shares increased $1.99, or 9.4 percent, to $23.23 in afternoon trading.