METTAWA, Ill., Feb. 20, 2024 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE:BC) and its many industry-leading brands have returned from another record-setting performance at the Miami International Boat Show.  During the five-day event, the Company saw record sales for some of its boat brands, continued strong outboard engine share, and an unprecedented number of awards for its products, brands, and teams. Some of the many notable highlights of the show for Brunswick were: Boston Whaler set an all-time Mi ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) Brunswick Corporation leads marine recreation, focusing on innovation, consumer experience, and ACES strategy across its Propulsion, Engine P&A, Navico Group, and Boat segments [Company Overview and Segments](index=5&type=section&id=Item%201.%20Business.Company%20Overview%20and%20Segments) Brunswick, a global marine recreation leader, realigned into Propulsion, Engine P&A, Navico Group, and Boat segments, emphasizing ACES strategy and consumer-centric innovation - The company's core strategy is centered on innovation and leadership in Autonomy, Connectivity, Electrification, and Shared Access (ACES) to enhance the consumer boating experience and drive growth[16](index=16&type=chunk) - Effective January 1, 2023, the company updated its reportable segments to Propulsion, Engine Parts and Accessories (Engine P&A), Navico Group, and Boat to align with its internal operating structure[17](index=17&type=chunk) 2023 Net Sales by Segment | Segment | 2023 Net Sales (in millions) | | :--- | :--- | | Propulsion | $2,763.8 | | Engine P&A | $1,199.8 | | Navico Group | $914.7 | | Boat | $1,989.4 | [Financing, Distribution, and Technology](index=7&type=section&id=Item%201.%20Business.Financing%2C%20Distribution%2C%20and%20Technology) Brunswick offers dealer and retail financing, leverages a global distribution network, and drives technology innovation through its ACES strategy, including electric outboards - The company provides wholesale inventory financing to dealers through its **49%-owned joint venture**, Brunswick Acceptance Company, LLC (BAC), with Wells Fargo & Company owning the other 51%[28](index=28&type=chunk) - Brunswick utilizes a global network of over **19,000 active independent dealers**, distributors, and retailers for the majority of its sales[32](index=32&type=chunk) - The company is heavily invested in its ACES (Autonomy, Connectivity, Electrification, and Shared Access) strategy, highlighted by the launch of Avator electric outboards and the acquisition of Fliteboard to enhance its electrification portfolio[34](index=34&type=chunk)[35](index=35&type=chunk) [International Operations and Raw Materials](index=9&type=section&id=Item%201.%20Business.International%20Operations%20and%20Raw%20Materials) International sales were **30%** of total net sales in 2023, with Europe as the largest market, while the company manages raw material and currency risks through global procurement and derivatives International Sales by Region (in millions) | Region | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Europe | $837.3 | $904.4 | $796.2 | | Canada | $373.0 | $458.2 | $411.7 | | Asia-Pacific | $410.0 | $466.0 | $439.0 | | Rest-of-World | $331.3 | $284.4 | $237.4 | | **Total** | **$1,951.6** | **$2,113.0** | **$1,884.3** | | **% of Net Sales** | **30%** | **31%** | **32%** | - The company purchases a wide variety of raw materials, including commodities like aluminum, copper, resins, and steel, and faces risks from price fluctuations and supply chain disruptions, mitigated by fixed-price contracts and derivatives[40](index=40&type=chunk) [Intellectual Property and Market Conditions](index=10&type=section&id=Item%201.%20Business.Intellectual%20Property%20and%20Market%20Conditions) Brunswick maintains a strong intellectual property portfolio with over **1,100 U.S. patents**, competing in fragmented markets based on product features, technology, and brand strength, with seasonal demand Intellectual Property Portfolio (as of Dec 31, 2023) | IP Type | Count | | :--- | :--- | | Active U.S. patents | > 1,100 | | Pending U.S. patent applications | > 450 | | Active foreign patents | > 650 | | U.S. registered trademarks | > 370 | | Foreign registered trademarks | > 1,800 | - The company faces strong competition across all product groups from diverse competitors, with no single entity competing across all of Brunswick's segments[44](index=44&type=chunk) [Environmental and Human Capital](index=10&type=section&id=Item%201.%20Business.Environmental%20and%20Human%20Capital) Brunswick prioritizes environmental sustainability through lower-carbon products and operational efficiency, while fostering human capital development, DEI, and strong safety performance for its **17,300 employees** - The company focuses on sustainability initiatives, including expanding the Avator™ electric outboard line, acquiring e-foil company Fliteboard, operationalizing solar installations, and reducing water consumption at manufacturing facilities[48](index=48&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk) - As of December 31, 2023, Brunswick employed approximately **17,300 people**, with **65%** hourly and **35%** salaried, including about **2,500 unionized U.S. employees**[64](index=64&type=chunk) - The company emphasizes Diversity, Equity, and Inclusion (DEI), with women comprising **one-third of Executive Officers and Directors**, and Employee Resource Group (ERG) participation doubling to over **1,000 members** in 2023[66](index=66&type=chunk)[67](index=67&type=chunk) Safety Incident Rates (2021-2023) | Rate Type | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total Recordable Incident Rate | 1.11 | 1.23 | 1.41 | | Lost Time Incident Rate | 0.33 | 0.36 | 0.42 | [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including economic downturns, currency fluctuations, supply chain disruptions, cybersecurity threats, and potential goodwill impairment, particularly for the Navico Group - Economic conditions, such as rising interest rates and inflation, significantly affect consumer discretionary spending on recreational products, which could reduce sales and harm financial performance[80](index=80&type=chunk)[81](index=81&type=chunk) - The company relies on third-party suppliers for raw materials and components, where shortages, price increases, or supplier failures could disrupt manufacturing and negatively affect financial results[95](index=95&type=chunk)[96](index=96&type=chunk) - Cybersecurity incidents, such as the one experienced in June 2023, can disrupt operations, lead to lost revenue, and result in significant remediation costs and reputational damage[133](index=133&type=chunk)[134](index=134&type=chunk) - There is a risk of goodwill impairment, particularly for the Navico Group reporting unit, whose fair value was approximately **10%** in excess of its carrying value at year-end, where a decline in forecasts could trigger an impairment charge[147](index=147&type=chunk) - The company relies on a network of third-party dealers, and a deterioration in their financial health or ability to secure floor plan financing could adversely affect distribution and sales[119](index=119&type=chunk)[121](index=121&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[160](index=160&type=chunk) [Cybersecurity](index=29&type=section&id=Item%201C.%20Cybersecurity) Brunswick manages cybersecurity risk via a NIST-based program, experiencing a June 2023 incident that caused an estimated **$80-85 million** revenue loss and **$35-40 million** operating earnings impact - Cybersecurity risk is overseen by the Audit and Finance Committee of the Board, with regular updates from the Chief Information Officer (CIO) and Chief Information Security Officer (CISO), and the program is based on the NIST Cybersecurity Framework[162](index=162&type=chunk)[163](index=163&type=chunk) - On June 13, 2023, an IT security incident impacted systems and facilities, pausing operations for **nine days**, with an estimated financial impact of **$80 million to $85 million in revenue loss** and **$35 million to $40 million in operating earnings**[167](index=167&type=chunk) - The company uses third-party service providers for risk assessments, penetration testing, and independent audits to evaluate and improve its cybersecurity program[164](index=164&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) Brunswick operates a global network of owned and leased manufacturing, distribution, and office facilities across North America, Europe, and Asia-Pacific, deemed suitable for current needs - The company's principal properties include manufacturing, distribution, and office facilities across North America, Europe, and Asia-Pacific, with a mix of owned and leased locations[170](index=170&type=chunk)[171](index=171&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) Information on legal proceedings is detailed in Note 11 – Commitments and Contingencies within the Consolidated Financial Statements - Refer to Note 11 – Commitments and Contingencies for information about legal proceedings[172](index=172&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[172](index=172&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Brunswick's common stock trades on NYSE, with **$275.0 million** in 2023 share repurchases and a **$500.0 million** authorization increase in January 2024, outperforming key indices - In 2023, the company repurchased **$275.0 million** of its common stock, and the Board of Directors approved a **$500.0 million** increase to the share repurchase authorization on January 30, 2024[186](index=186&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Shares Purchased | Weighted Average Price Paid per Share | | :--- | :--- | :--- | | Oct 1 - Oct 28 | 134,197 | $74.52 | | Oct 29 - Nov 25 | 394,467 | $70.88 | | Nov 26 - Dec 31 | 197,118 | $86.45 | | **Total** | **725,782** | **$75.78** | Comparison of Cumulative Total Shareholder Return (2018-2023) | Index | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Brunswick | $100.00 | $131.24 | $169.24 | $224.46 | $165.54 | $225.78 | | S&P 400 GICS Consumer Discretionary | $100.00 | $81.92 | $103.17 | $171.32 | $135.32 | $169.26 | | S&P 400 Index | $100.00 | $89.02 | $112.50 | $156.48 | $136.29 | $160.05 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Brunswick's 2023 financial performance, noting a **6.0%** net sales decrease to **$6.4 billion** and a **22.5%** operating earnings decline to **$734.9 million**, driven by lower volumes and an IT incident [Results of Operations](index=38&type=section&id=Item%207.%20MD%26A.Results%20of%20Operations) In 2023, consolidated net sales decreased **6.0%** to **$6.4 billion**, operating earnings fell **22.5%** to **$734.9 million**, and diluted EPS from continuing operations dropped to **$6.13** Consolidated Results of Operations (in millions, except per share data) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net sales | $6,401.4 | $6,812.2 | $5,846.2 | | Gross margin | $1,787.0 | $1,947.2 | $1,666.0 | | Operating earnings | $734.9 | $947.8 | $812.9 | | Net earnings from continuing operations | $432.6 | $681.3 | $595.4 | | Diluted EPS from continuing operations | $6.13 | $9.06 | $7.59 | Components of Net Sales Change (2023 vs. 2022) | Component | Percent Change | | :--- | :--- | | Volume | (13.2)% | | Product Mix and Price | 8.1% | | IT Security Incident | (1.2)% | | Acquisitions | 0.4% | | Currency | (0.1)% | | **Total** | **(6.0)%** | - Gross margin percentage decreased by **70 basis points** in 2023 compared to 2022, driven by higher manufacturing costs (**260 bps**), depreciation (**60 bps**), and the IT security incident (**30 bps**), partially offset by favorable sales-related drivers (**330 bps**)[205](index=205&type=chunk) - The company recorded restructuring, exit, and impairment charges of **$54.7 million** in 2023, an increase from **$25.1 million** in 2022, expected to yield approximately **$45 million** in annualized cost savings[206](index=206&type=chunk) [Segment Performance](index=40&type=section&id=Item%207.%20MD%26A.Segment%20Performance) All segments saw sales declines in 2023, with Propulsion down **2.1%** to **$2.8 billion**, Engine P&A down **8.4%** to **$1.2 billion**, Navico Group down **14.5%** to **$914.7 million**, and Boat down **6.1%** to **$2.0 billion** 2023 vs. 2022 Segment Performance (in millions) | Segment | 2023 Net Sales | % Change | 2023 Operating Earnings | % Change | 2023 Adjusted Op. Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Propulsion | $2,763.8 | (2.1)% | $494.7 | (5.4)% | 18.2% | | Engine P&A | $1,199.8 | (8.4)% | $217.4 | (18.9)% | 18.5% | | Navico Group | $914.7 | (14.5)% | $5.2 | (92.4)% | 10.0% | | Boat | $1,989.4 | (6.1)% | $155.6 | (26.9)% | 8.8% | - Propulsion segment sales decreased **2.1%** due to a **14.1%** volume decline, largely offset by a **13.4%** improvement in product mix and price[216](index=216&type=chunk) - Navico Group operating earnings fell **92.4%** to **$5.2 million**, impacted by lower sales, restructuring charges, and elevated input costs[229](index=229&type=chunk) - Boat segment operating earnings decreased **26.9%** to **$155.6 million**, driven by lower sales and restructuring charges, partially offset by cost reduction efforts[235](index=235&type=chunk) [Cash Flow, Liquidity and Capital Resources](index=48&type=section&id=Item%207.%20MD%26A.Cash%20Flow%2C%20Liquidity%20and%20Capital%20Resources) Net cash from operating activities increased to **$745.2 million** in 2023, with free cash flow doubling to **$473.4 million**, ending the year with **$1.21 billion** in total liquidity and **$2.43 billion** in debt Cash Flow Summary (in millions) | Cash Flow Item | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $745.2 | $580.4 | $586.2 | | Capital expenditures | ($289.3) | ($388.3) | ($267.1) | | Total free cash flow | $473.4 | $191.5 | $320.8 | Total Liquidity (as of Dec 31, in millions) | Component | 2023 | 2022 | | :--- | :--- | | Cash, cash equivalents and marketable securities | $468.6 | $600.1 | | Amounts available under lending facilities | $741.9 | $747.2 | | **Total liquidity** | **$1,210.5** | **$1,347.3** | - The 2024 capital strategy includes share repurchases exceeding **$200 million** and capital expenditures of approximately **$225 million**, scaling back slightly from prior years[252](index=252&type=chunk) [Critical Accounting Estimates](index=51&type=section&id=Item%207.%20MD%26A.Critical%20Accounting%20Estimates) Critical accounting estimates include revenue recognition, warranty reserves, and goodwill valuation, with a **$13.0 million** impairment on the Navico trade name and the Navico Group's goodwill fair value being sensitive to assumptions - Key critical accounting estimates involve significant judgment in areas such as revenue recognition, warranty reserves, goodwill and intangible asset valuation, and income taxes[258](index=258&type=chunk)[260](index=260&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[273](index=273&type=chunk) - The company recorded a **$13.0 million** impairment charge on the Navico trade name in 2023 due to declines in forecasted revenues[270](index=270&type=chunk) - The fair value of the Navico Group reporting unit exceeded its carrying value by approximately **10%**, making it sensitive to changes in assumptions, where a **100 basis point** increase in the discount rate would cause the fair value to approximate the carrying value[147](index=147&type=chunk)[435](index=435&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Brunswick manages market risks from foreign currency, commodity prices, and interest rates using derivatives, with a **10%** adverse currency change potentially reducing derivative fair value by **$91.7 million** - The company uses derivative financial instruments, including foreign currency forwards, options, and interest rate swaps, to manage market risks associated with currency, commodity prices, and interest rates[276](index=276&type=chunk)[277](index=277&type=chunk) - A sensitivity analysis showed that a **10%** adverse change in quoted foreign currency rates would lead to an estimated reduction in the fair market value of derivative financial instruments of **$91.7 million** as of year-end 2023, compared to **$71.6 million** in 2022[279](index=279&type=chunk) [Financial Statements and Supplementary Data](index=54&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2021-2023, including statements of operations, balance sheets, cash flows, and accompanying notes [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=54&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting and financial disclosure - None[280](index=280&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes in Q4 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal year 2023[280](index=280&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of 2023 that materially affected, or are reasonably likely to materially affect, these controls[282](index=282&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=56&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the upcoming Proxy Statement for the May 1, 2024 Annual Meeting - Information required for this item is incorporated by reference from the company's definitive Proxy Statement for the Annual Meeting of Shareholders scheduled for May 1, 2024[284](index=284&type=chunk) [Executive Compensation](index=56&type=section&id=Item%2011.%20Executive%20Compensation) Information on director and executive compensation is incorporated by reference from the upcoming Proxy Statement for the May 1, 2024 Annual Meeting - Information required for this item is incorporated by reference from the company's definitive Proxy Statement for the Annual Meeting of Shareholders scheduled for May 1, 2024[285](index=285&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=56&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management, and equity compensation plans, is incorporated by reference from the upcoming Proxy Statement - Information required for this item is incorporated by reference from the company's definitive Proxy Statement for the Annual Meeting of Shareholders scheduled for May 1, 2024[286](index=286&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=56&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the upcoming Proxy Statement - Information required for this item is incorporated by reference from the company's definitive Proxy Statement for the Annual Meeting of Shareholders scheduled for May 1, 2024[287](index=287&type=chunk) [Principal Accounting Fees and Services](index=56&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services, and the Audit and Finance Committee's pre-approval policy, is incorporated by reference from the upcoming Proxy Statement - Information required for this item is incorporated by reference from the company's definitive Proxy Statement for the Annual Meeting of Shareholders scheduled for May 1, 2024[288](index=288&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=57&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K - This section provides an index of all financial statements, schedules, and exhibits filed with the 10-K report[290](index=290&type=chunk) [Form 10-K Summary](index=109&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that no Form 10-K summary is provided - None[550](index=550&type=chunk)

METTAWA, Ill., Feb. 15, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Brunswick Corporation (NYSE:BC) today declared a quarterly dividend on its common stock of $0.42 per share, an increase of 5% to the current dividend. This marks the twelfth consecutive year of dividend increases. The dividend will be payable on March 15, 2024, to shareholders of record at the close of business on February 26, 2024. "Our business continues to execute on our capital strategy while showing strong operating results whic ...

METTAWA, Ill, Feb. 14, 2024 (GLOBE NEWSWIRE) -- For the sixth consecutive year, Brunswick Corporation (NYSE:BC), the world's largest recreational marine technology company, has been named one of America's Best Large Employers for 2024 by Forbes Magazine. Of the thousands of companies that were surveyed for this recognition, only 600 made the list. "We are honored to once again see Brunswick recognized as one of America's top employers. This award reflects direct feedback from our global workforce of more th ...

MIAMI, Feb. 14, 2024 (GLOBE NEWSWIRE) -- Fliteboard, a brand of Brunswick Corporation (NYSE:BC), and a leader in the eFoil industry, today announced the introduction of Flite AIR and Flite AIR PRO, the most attainable models in the brand's portfolio and a significant milestone for Flite as it continues to appeal to a broader consumer at different price points. Since 2017, Flite has been a leader in water sports through its innovative approach and industry-leading technology. The new Flite AIR and Flite AIR ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Brunswick Corporation (BC) is a recreation products company. The Zacks Consensus Estimate for its current year earnings has been revised 13% downward over the last 60 days.CVR Energy, Inc. (CVI) is an integrated energy company. The Zacks Consensus Estimate for its current year earnings has been revised 9.2% downward over the last 60 days.Coastal Financial Corporation (CCB) is a bank holding company for Coastal Community Bank.The Zacks ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Brunswick Corporation (BC) is a recreational product manufacturer. The Zacks Consensus Estimate for its current year earnings has been revised 11.3% downward over the last 60 days.Chevron Corporation (CVX) is an integrated energy and chemicals company. The Zacks Consensus Estimate for its current year earnings has been revised 10.4% downward over the last 60 days.The Container Store Group, Inc. (TCS) is an organizing solutions company ...

Financial Data and Key Metrics Changes - Brunswick reported full year net sales of $6.4 billion and adjusted earnings per share (EPS) of $8.80, slightly below guidance due to softened wholesale customer ordering patterns [5][14] - Free cash flow for the year was outstanding at $473 million, with a conversion rate of 76% [5][14] - Q4 net sales decreased by 14% compared to the previous year, with adjusted EPS down 27% to $1.45 [14][15] Business Line Data and Key Metrics Changes - The Propulsion business experienced a 12% revenue decline in Q4 2023, primarily due to cautious OEM ordering patterns, but operating margins increased by 110 basis points [15][18] - Engine Parts and Accessories sales were flat year-over-year in Q4, with the high-margin Products business growing by 3% [17][70] - Navico Group reported a 17% decrease in sales due to softer marine OEM orders and a weak RV manufacturing environment [18] Market Data and Key Metrics Changes - The U.S. new boat market is expected to finish down mid-to-high single digits, with Brunswick brands outperforming in many segments [5][12] - Overall boat retail sales are trending slightly above 2023, with January unit sales typically being a small contribution to the year [9][12] - The outboard engine industry retail units increased by 1% in Q4, with Mercury gaining market share [13] Company Strategy and Development Direction - Brunswick continues to focus on its ACES strategy, emphasizing operational efficiency, new product launches, and cost control [4][20] - The company plans to maintain market share gains in outboard engines and premium boat categories while managing costs effectively [23][24] - Brunswick is actively managing its inventory levels and expects to end 2024 with lower inventory than in 2023 [41][43] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for Q1 2024 due to continued cautious ordering patterns from OEMs and retailers [33][35] - The company anticipates a potential recovery in orders as the main selling season approaches, with early signs of improved retail performance [34][35] - Management remains focused on driving earnings and free cash flow while navigating a challenging macroeconomic environment [20][21] Other Important Information - Brunswick executed $275 million in share repurchases and increased its dividend for the 11th consecutive year [20][25] - The company ended 2023 with $480 million in cash and plans to be active in share repurchases in 2024 [19][25] - Brunswick launched over 15 new products in early 2024, indicating a strong commitment to innovation [27][28] Q&A Session Summary Question: Can you rank the topline drivers by segment and provide visibility for improvement? - Management noted that reduced demand from marine OEMs impacted wholesale orders, but expects orders to normalize as the main selling season approaches [31][32] Question: What is the outlook for inventory levels? - Management expressed confidence in their inventory management, planning to end 2024 with slightly lower inventory levels than in 2023 [40][43] Question: How does the 2024 guidance compare to previous recession scenarios? - Management highlighted that the current guidance reflects a more stable macro environment, with potential for a quicker recovery if interest rates decrease [44][46] Question: What are the drivers behind the expected decline in Propulsion margins? - The decline is attributed to lower volume absorption, increased tariffs, and elevated input costs, despite positive pricing trends [50][51] Question: What has gone well and not well with the Navico acquisition? - Management believes Navico is a strategic asset, but has faced challenges due to market downturns and destocking [64][66]

Q4 2023 Earnings Conference Call BRUNSWICK CORPORATION –EARNINGS RELEASE Forward-Looking Statements Certain statements in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections about Brunswick’s business and by their nature address matters that are, to different degrees, uncertain. Words such as “may,” “could,” “should,” “expect,” "anticipate," "project," "po ...

For the quarter ended December 2023, Brunswick (BC) reported revenue of $1.36 billion, down 14% over the same period last year. EPS came in at $1.45, compared to $1.99 in the year-ago quarter.The reported revenue represents a surprise of -5.17% over the Zacks Consensus Estimate of $1.44 billion. With the consensus EPS estimate being $1.66, the EPS surprise was -12.65%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expec ...