Brunswick Corporation (BC) has reported a 12.52 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $85.40 million, or $0.93 a share in the quarter, compared with $75.90 million, or $0.81 a share for the same period last year. On an adjusted basis, earnings per share from continuing operations were at $0.91 for the quarter compared with $0.77 in the same period last year. Revenue during the quarter grew 10.19 percent to $1,093 million from $991.90 million in the previous year period. Gross margin for the quarter contracted 7 basis points over the previous year period to 28.33 percent. Total expenses were 88.79 percent of quarterly revenues, up from 88.33 percent for the same period last year. That has resulted in a contraction of 47 basis points in operating margin to 11.21 percent.
Operating income for the quarter was $122.50 million, compared with $115.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $124.90 million compared to $115.80 million in the prior year period. At the same time, adjusted operating margin contracted 25 basis points in the quarter to 11.43 percent from 11.67 percent in the last year period.
"Our reported third quarter net sales increased by 10 percent," said Brunswick chairman and chief executive officer Mark Schwabero. “Our top line reflected the benefits of our acquisition strategy, particularly in our Fitness segment, and strong growth rates in all three of our primary boat categories, as well as marine parts and accessories. This growth included another solid performance in outboard engines. "The U.S. marine market continues to exhibit solid fundamentals and growth, which are supported by stable boating participation, favorable replacement cycle dynamics and innovative products being introduced throughout the marketplace. Overall, international marine markets have been challenging, including weak demand in certain markets such as Latin America, the Middle East and Africa and Canada. Our product successes in both our engine and boat segments have enabled continued market share gains and mix benefits."
For fiscal year 2016, Brunswick Corporation expects diluted earnings per share to be in the range of $3.45 to $3.50 on adjusted basis.
Operating cash flow improves
Brunswick Corp has generated cash of $278.80 million from operating activities during the nine month period, up 22.66 percent or $51.50 million, when compared with the last year period. The company has spent $377.90 million cash to meet investing activities during the nine month period as against cash outgo of $17.60 million in the last year period. It has incurred net capital expenditure of $130.20 million on net basis during the nine month period, up 35.06 percent or $33.80 million from year ago period.
Cash flow from financing activities was almost stable for the quarter at $126.60 million, when compared with the previous year period.
Cash and cash equivalents stood at $437.20 million as on Oct. 01, 2016, down 29.70 percent or $184.70 million from $621.90 million on Oct. 03, 2015.
Debt remains almost stable
Total debt of Brunswick Corporation remained almost stable for the quarter at $452.20 million, when compared with the last year period. Total debt was 13.95 percent of total assets as on Oct. 01, 2016, compared with 14.49 percent on Oct. 03, 2015. Debt to equity ratio was at 0.32 as on Oct. 01, 2016, down from 0.35 as on Oct. 03, 2015. Interest coverage ratio improved to 17.50 for the quarter from 16.54 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
