“Unfavorable weather” in North America through midyear “muted market demand” for Brunswick Corp.’s value boats and lower horsepower engines, Chief Executive David Foulkes said on the company’s second-quarter earnings call. Net sales for the boat segment fell 7.2% year over year, to $366.6 million last quarter.
Despite decreased demand, Brunswick is continuing with plans to expand the segment. The OEM sealed the deal on its Freedom Boat Club acquisition in May, and subsidiaries Boston Whaler and Harris Boats have “major product launches” lined up for later this year and early 2020, Foulkes said.
Brunswick’s U.S. revenue was up 1%, pushed partially by 4.5% sales growth year over year in the company’s marine engine segment. Dealer demand for higher horsepower engines was “up significantly,” according to Foulkes.
The company completed the sale of its Fitness business last month, with net proceeds totaling approximately $470 million.