Brunswick Corporation (NYSE:BC) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET

Company Participants

Neha Clark - Senior Vice President, Enterprise Finance

David Foulkes - Chief Executive Officer

Ryan Gwillim - Chief Financial Officer

Conference Call Participants

Xian Siew - BNP Paribas

Joe Altobello - Raymond James

Mike Swartz - Truist Securities

James Hardiman - Citi

Fred Wightman - Wolfe Research

Eric Wold - B. Riley Securities

Scott Stember - MKM Partners

Gerrick Johnson - BMO Capital Markets

Craig Kennison - Baird

Operator

Good morning, and welcome to Brunswick Corporation's First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer period. Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

I would now like to introduce Neha Clark, Senior Vice President, Enterprise Finance of Brunswick Corporation. Please go ahead.

Neha Clark

Good morning, and thank you for joining us.

With me on the call this morning are Dave Foulkes, Brunswick's CEO; and Ryan Gwillim, CFO.

Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For details on these factors to consider, please refer to our recent SEC filings and today's press release. All of these documents are available on our website at brunswick.com.

During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation sections of the unaudited consolidated financial statements accompanying today's results.

I will now turn the call over to Dave.

David Foulkes

Thanks, Neha, and good morning, everyone.

We started the year strongly, delivering record first quarter net sales of more than $1.7 billion and adjusted operating earnings of $262 million. Our business continued to leverage our investments in new products, technology and innovation across the enterprise, high horsepower outboard manufacturing capacity and premium boat manufacturing capacity, while taking significant actions to reduce structural costs in a macroeconomic environment that continues to be challenging.

Our first quarter adjusted earnings per share of $2.57 highlights the robustness of our business and the strength of our portfolio.

There were notable divisional highlights, including our Propulsion business, delivering outstanding net sales, adjusted operating earnings and operating margin, and our Boat business, delivering double-digit adjusted operating margins for the fourth consecutive quarter despite increased promotion and discounting on certain product lines.