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Brunswick Corporation's Q3 2024 Net Sales Drop by 20%

Brunswick Corporation recently released its 10-Q report, detailing its operations and financial performance. The company operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, while the Engine P&A segment offers engine parts and consumables. The Navico Group offers products and systems for marine, recreational vehicle, and industrial markets. The Boat segment offers various boat types, from sport boats to fishing and pontoon boats.

In the third quarter of 2024, Brunswick's net sales decreased by 20% compared to the same period in 2023. The Propulsion segment saw lower sales and operating earnings, while the Engine P&A segment had another strong quarter with record operating margins of 26%. The Navico Group and Boat segments also experienced lower sales and operating earnings due to soft marine OEM order rates and planned production levels. International net sales decreased by 13% on both a GAAP and constant currency basis during the nine months ended September 28, 2024.

The company's operating earnings in the third quarter of 2024 were $98.4 million on a GAAP basis, compared to $196.1 million in the same period in 2023. For the nine months ended September 28, 2024, operating earnings were $367.3 million on a GAAP basis, compared to $626.6 million in the same period in 2023. The gross margin decreased by 170 basis points in the third quarter of 2024, driven by sales-related factors and lower production levels, among other factors.

Brunswick also provided a reconciliation of its non-GAAP measures, adjusted operating earnings, and adjusted diluted earnings per common share from continuing operations for the three and nine months ended September 28, 2024, compared to the same periods in 2023. The company recorded restructuring, exit, and impairment charges of $12.2 million and $33.6 million during the three and nine months ended September 28, 2024, respectively, with estimated annualized cost savings of approximately $20.0 million from the 2024 actions. Additionally, Brunswick recognized equity earnings and losses, other (expense) income, net, and income tax provisions during the reporting periods.

Following these announcements, the company's shares moved -1.6%, and are now trading at a price of $81.5. For more information, read the company's full 10-Q submission here.

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