Brunswick Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Dull Year Ended December 31, 2016; Provides Earnings Guidance for the Year 2017 and 2018
January 26, 2017 at 07:38 am
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Brunswick Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company's net sales were $1,083.0 million compared to $986.1 million a year ago. Operating earnings was $28.6 million compared to loss of $27.0 million a year ago. Earnings before interest and income taxes were $30.1 million compared to loss of $25.5 million a year ago. Earnings before income taxes were $24.0 million compared to loss of $31.8 million a year ago. Net earnings from continuing operations were $17.8 million compared to loss of $9.0 million a year ago. Net earnings were $17.7 million compared to loss of $9.3 million a year ago. Diluted earnings per share from continuing operations were $0.19 compared to loss per share of $0.10 a year ago. Diluted earnings per share were $0.19 compared to loss per share of $0.10 a year ago. Adjusted operating earnings were $90.5 million compared to $67.7 million a year ago. Adjusted pretax earnings were $85.9 million compared to $62.9 million a year ago. Diluted earnings per share from continuing operations, as adjusted were $0.67 compared to $0.52 a year ago.
For the year, the company's net sales were $4,488.5 million compared to $4,105.7 million a year ago. Operating earnings was $409.0 million compared to $331.7 million a year ago. Earnings before interest and income taxes were $415.4 million compared to $340.8 million a year ago. Earnings before income taxes were $389.7 million compared to $315.2 million a year ago. Net earnings from continuing operations were $274.4 million compared to $227.4 million a year ago. Net earnings were $276.0 million compared to $241.4 million a year ago. Diluted earnings per share from continuing operations were $2.98 compared to $2.41 a year ago. Diluted earnings per share were $3.00 compared to $2.56 a year ago. Adjusted operating earnings were $479.7 million compared to $426.4 million a year ago. Adjusted pretax earnings were $460.4 million compared to $409.9 million a year ago. Diluted earnings from continuing operations, as adjusted were $3.48 compared to $2.93 a year ago. Net cash provided by operating activities was $421.9 million compared to $323.5 million a year ago. Capital expenditures were $193.9 million compared to $132.5 million a year ago. Free cash flow totaled $234 million, an improvement of $41 million versus the prior year. Cash generated by continuing operating activities was $426 million, an improvement of $87 million versus the prior year. The improvement reflects increased net earnings and more favorable working capital timing.
The company's guidance for 2017 reflects a diluted EPS, as adjusted, range of $3.90 to $4.05. Finally, for the full-year 2017, the company expects to generate free cash flow in excess of $250 million. Effective book tax rate guidance for full year 2017 is expected to be approximately 31% as adjusted.
For 2018, the company anticipates that effective tax rate will continue to be favorable to the 32% to 33% range provided at Investor Day in November 2015. Operating margin target for 2018 of 6% to 7%.
Brunswick Corporation designs, manufactures and markets recreational marine products, including marine propulsion products and boats, as well as parts and accessories for the marine and RV markets. Its segments include Propulsion, Engine Parts and Accessories (Engine P&A), Navico Group and Boat. The Propulsion segment designs, manufactures and sells engines, controls, rigging, and propellers globally. The Engine P&A segment sells products such as engine parts and consumables including oils and lubricants, electrical products, boat parts and systems, and also includes its marine parts and accessories distribution businesses. The Navico Group segment designs, develops, manufactures, and markets products and systems for the marine and RV, specialty vehicle markets. The Boat segment consists of the Brunswick Boat Group (Boat Group), which manufactures and distributes recreational boats, and Business Acceleration. Its boat brands include Boston Whaler, Lund, Sea Ray and Bayliner.
Brunswick Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Dull Year Ended December 31, 2016; Provides Earnings Guidance for the Year 2017 and 2018