Marine engines, boats, fitness and sports equipment maker Brunswick Corp. (BC) Thursday posted a narrower loss for the third quarter, despite revenues decline, by reducing its marine dealer pipeline and executing cost reduction program. Brunswick's adjusted loss was narrower than analysts' estimates.
Third quarter net loss narrowed 84% to $114.3 million or $1.29 per share from $729.1 million or $8.26 per share in 2008, primarily the result of marine sales that dropped 40% year-over-year. Brunswick said adjusted loss per share was $1.21 compared with $0.33 a year ago.
On average, five analysts polled by Thomson Reuters expected the company to report a loss of $1.34 per share. Analysts' estimates typically exclude special items.
Net loss per share for the third quarter of 2009 included restructuring charges of $0.32 per share and $0.24 per share benefit from special tax items.
Net sales for the quarter declined 36% to $665.8 million from $1.04 billion a year earlier. Four Wall Street analysts expected revenues of $701.13 million.
Third-quarter total Marine segment sales were 40% lower at $461.6 million compared with $766 million last year. Marine Engine segment sales were $363.5 million, down 29% from $515.2 million a year ago. International sales, representing 41% of total segment sales in the quarter, declined 27%.
Boat segment net sales were $118.2 million, down 62% from $314.2 million in 2008. International sales, representing 43% of total segment sales, decreased 60% during the period.
Fitness segment sales in the third quarter of 2009 totaled $126.8 million, down 22% from $161.6 million in the year-ago quarter. International sales, representing 55% of total segment sales in the quarter, declined 15%.
Bowling & Billiards segment sales totaled $77.5 million, down 30% from $111.1 million last year.
Operating loss narrowed 81% to $109.4 million from $566.3 million year-over-year, the company said.
Cost of sales for the third quarter declined 32% to $590.2 million from $862.3 billion a year earlier. Restructuring, exit and impairment charges for the third quarter declined 26% to $28.8 million from $39.1 million year-on-year.
Research and development expense for the third quarter declined 38% to $19.5 million from $31.2 million in 2008.
Brunswick said cash totaled $624.1 million, up from the 2008 year-end balance of $317.5 million. Pipeline reduction and inventory management strategies led to lower dealer inventory levels and company cash flow benefits, while having a negative impact on the company's revenue and earnings.
Brunswick Chief Executive Dustan McCoy said, "We continue to make great strides in improving our overall liquidity position, reducing our marine dealer pipeline and executing our cost reduction program. These significant accomplishments have been achieved against a global marine market that has experienced its lowest level of demand in more than 45 years."Net loss for the nine months narrowed 36% to $462.2 million or $5.23 per share from $721.8 million or $8.18 per share last year. Adjusted net loss per share was $3.94 compared with earnings of $0.36 per share.
For the nine months ended, net sales were down 45% at $2.119 billion compared with $3.871 billion a year ago.
Looking ahead to the fourth quarter and fiscal 2010, the company said its near-term operating and financial strategies would continue to be focused on maintaining strong liquidity without additional borrowing, taking all reasonable actions to protect its dealer network.
BC is trading up 0.44% at $9.91 on the NYSE.
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