Brunswick posts higher profit despite lower sales

<!– TEST
Brunswick posts higher profit despite lower sales
Brunswick posts higher profit despite lower sales


(AP) — Boat and sporting-goods maker Brunswick Corp. said Thursday its first-quarter profit jumped 44 percent, as lower interest expenses and a reduced income tax provision offset a slight drop in sales.

The Lake Forest, Ill.-based company, which makes a wide variety of products ranging from boats to bowling balls, earned $39.7 million, or 43 cents per share, up from $27.5 million, or 30 cents per share, in the same quarter last year.

Excluding one-time items, the company said it posted an adjusted profit of 45 cents per share for the recent quarter.

Total revenue about 1 percent to $974.2 million from $985.9 million, as sales at the company’s marine engine segment fell 2.3 percent to $489.4 million on lower global sales of sterndrive engine products.

Boat segment and fitness segment sales were both relatively flat at $306.4 million and $157.1 million, respectively. Sales at the company’s bowling and billiards business rose 3 percent to $89.9 million.

The results beat Wall Street predictions. Analysts, on average, expected a profit of 37 cents per share on $963.4 million in revenue, according to a FactSet poll.

The company partially credited the better-than-expected results to a 22 percent drop in interest expense to $18.1 million and a 20 percent drop in its income tax provision to $10.5 million.

Based on its first-quarter results and current market conditions, the company narrowed its full-year profit prediction to a range of $1.30 to $1.50 per share, saying it expects significant sales growth in the second half of the year. The company previously predicted a profit of between $1.20 and $1.50 per share.

Analysts polled by FactSet expect a profit of $1.45 per share on $3.93 billion in revenue.

Brunswick shares fell 23 cents to $26.67 in Thursday trading.



What do you think?


(Note: Your first name and last initial will appear with your remarks.)

Similar news:
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>