By Boatmaker Brunswick recently released its preliminary results for the second quarter, which fell short of the company’s own expectations. The underwhelming sales and earnings figures were attributed to a recent information-technology security incident that had a negative impact on operations.
Decrease in Sales
Compared to the second quarter of the previous year, Brunswick now anticipates second-quarter sales to be $1.7 billion, a decrease from $1.84 billion.
Earnings Outlook
The company expects to report earnings per share in the range of $1.85 to $1.90, and adjusted earnings per share in the range of $2.30 to $2.35. These figures are lower than the previously announced adjusted earnings guidance of $2.60 to $2.70 per share.
Effect of Security Incident
The security incident, which was disclosed in June, had a significant impact on Brunswick’s ability to meet its adjusted earnings guidance. Without this incident, the company believes it would have achieved or surpassed its previous projections.
Revised Full-Year Guidance
Brunswick’s Chief Executive Dave Foulkes stated that the company is now aiming for full-year adjusted earnings of $9.50 per share, which is at the lower end of its earlier guidance range of $9.50 to $11.00 per share.
Operational Recovery and Future Prospects
Though the company’s facilities and systems are now fully operational again, the disruption occurred too close to the end of the quarter to fully recover during that period. However, Brunswick intends to be in full production for the remainder of the year. Additionally, they have observed stronger-than-expected new boat retail activity in recent months.
Market Reaction
Following the announcement, Brunswick’s shares experienced a 3.5% decline in premarket trading, with a value of $82.21.
Earnings Call and Updates
Further details regarding the quarterly results and full-year outlook will be provided by Brunswick during its earnings call scheduled for July 27.
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