Q2 2024 Brunswick Corp Earnings Call Transcript
Key Points
- Brunswick Corp (BC) continues to gain market share in outboard engines, holding over 48% of the US market.
- Recurring revenue businesses, including engine parts and accessories, Freedom Boat Club, and aftermarket sales, contributed more than 50% of Q2 adjusted operating earnings.
- Strong cash flow enabled $170 million to be deployed for share repurchases year-to-date.
- The engine parts and accessories business had a strong quarter, with sales and operating earnings up versus the second quarter of 2023.
- Freedom Boat Club continued to deliver steady membership sales growth, adding two more flagship locations in Denmark and the UK.
- Second quarter results were slightly below expectations due to high interest rates and suppressed discretionary spending.
- Full year unit retail sales are now expected to be down approximately 10% versus the original forecast of flat.
- Higher levels of discounting and carrying costs have increased pressure on dealer and channel partner profit margins.
- Navico Group had lower sales and operating earnings versus the second quarter of 2023 due to reduced marine OEM order rates and persistently slow RV orders.
- Adjusted operating earnings were down versus prior year due to the impact of lower net sales and higher manufacturing costs.
Good morning and welcome to Brunswick Corporation second quarter 2024 earnings conference call. (operator instructions) Today's meeting will be recorded. If you have any objections, you may disconnect at this time.
I would now like to introduce Neha Clark, Senior Vice President, Enterprise finance, Brunswick Corporation. Please go ahead.
Good morning and thank you for joining us. With me on the call this morning are Dave Foulkes, Brunswickâs CEO, and Ryan Gwillim, CFO. Before we begin with our prepared remarks, I would like to remind everyone that during this call our comments will include certain forward-looking statements about future results.
Please keep in mind that our actual results could differ materially from these expectations. For details on these factors to consider, please refer to our recent SEC filings and todayâs press release. All of these documents are available on our website at brunswick.com.
During our presentation, we will be referring to
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