Bruunswick Fact Sheet
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Transcript of Bruunswick Fact Sheet
Brunswick CorporationAt-A-Glance
Helping Active People Live Active LivesDecember 2014
Helping Active People Live Active Lives2
What We Do
Helping people enjoy their lives and each other since 1845.
World’s leading provider
of marine engines,
pleasure boats,
fitness equipment and
billiards products
Founded
By John Brunswick, a Swiss immigrant woodworker in 1845, in Cincinnati, Ohio, to make billiards tables.
Headquarters:
Lake Forest, Illinois, a Chicago suburb.
Total sales
2013 net sales were approximately $3.6 billion.1
Geographic reach
Brunswick’s products are sold throughout North America, Europe, Asia/Pacific, South America, Africa and the Middle East.
Stock symbol
BC. Brunswick stock is traded on the New York and Chicago stock exchanges. Brunswick has been a member of the New York Stock Exchange since 1925.
Shares outstanding
92.6 million as of February 12, 2014.
Employees
Approximately 11,200 people worldwide at December 31, 2013.1
Website
www.brunswick.com
1Adjusted for bowling divestitures
Brunswick Corporation At-A-Glance
Brunswick Corporation
3
2013 Revenue by Segment
51% – Engine1
29% – Boat
20% – Fitness
51%
20%
29%
13%62%
9%
8%
6% 2%
Global Customer Base 2013
62% – U.S.
13% – Europe
9% – Canada
8% – Asia Pacific
6% – Latin America
2% – Africa & Middle East
Continuing Operations
2012 2013
Revenue $3.4 B $3.6 B
Operating Earnings2 $263 M $298 M
OperatingMargin2 7.7% 8.3%
EPS, as adjusted3 $1.83 $2.47
Segment U.S. International
Engine1 65% 35%
Boat 64% 36%
Fitness 50% 50%
Total 62% 38%
20% – Fitness
80% – Marine
Financial Profile
1 Adjusted for marine eliminations
2 Excludes restructuring charges of $25.4 million and $16.5 million in 2012 & 2013, respectively
3 Excludes reversal of deferred tax asset valuation allowance reserves, restructuring charges, debt losses and special tax items of $0.48, and ($5.60) in 2012 & 2013, respectively
Products and Servicesby Category and Region
Helping Active People Live Active Lives4
2013 Revenue by Category
43% – P&A
43% – Engine (Outboard)
14% – Engine (Sterndrive/Inboard)
Brands Products and Servicesby Category and Region
Mercury Marine
Mercury MerCruiser
Mercury Diesel
Mariner
Mercury Racing
MotorGuide
Quicksilver
Attwood
Diversified Marine Products
Kellogg Marine Supply
Land ‘N’ Sea
Outboard Engines
2hp – 300hp (FourStrokes)
75hp – 250hp (OptiMax® Direct Fuel Injected)
2hp – 250hp (Traditional two-strokes for International sales)
60hp – 350hp (Mercury Racing)
Sterndrive and Inboard Engines
135hp – 430hp
520hp – 1650hp (Mercury Racing)
Diesel
115hp – 370hp
Electric Trolling Motors
30 – 109 pounds of thrust
Parts & Accessories (P&A)
World-leading products that are designed with boaters and their engines in mind, including boat accessories, service parts, oil and lubes, and rigging
Advanced Propulsion Systems
• Joystick Piloting for Outboard, Sterndrive and Pod systems
• SmartCraft® digital technology
• Advanced user-interface products, including:
– Information Displays
– Gauges
– Controls and Rigging
Non-Marine Market Capabilities
Aluminum casting, industrial propellers, gears and shafts
14%
43% 43%
12%65%
4%
9%
7%
3%
Engine SegmentMercury Marine positioned for sustained, industry-leading performance
2013 Revenue by Region
65% – U.S.
12% – Europe
9% – Asia Pacific
7% – Latin America
4% – Canada
3% – Africa & Middle East
5
Competitive LandscapeMercury Marine Advantages
ManufacturingLocations, Employees, Distribution
Global Competitors:
• Outboard
– Yamaha
– Suzuki
– Evinrude
– Honda
• Sterndrive/Inboard
– Volvo Penta
Advantages:
• Strong global brands with leading market shares
• Broadest, most comprehensive product portfolio
– 2hp – 350hp (Outboards)
– 135hp – 1650hp (Sterndrives)
– 300hp – 425hp (Inboards)
– 115hp – 370hp (Diesel)
• Leading global distribution network
• Focused on marine propulsion systems
• Global, low-cost producer
• Mercury Racing provides proven technology
• Significant parts and accessories and service provider:
– Land ‘N’ Sea and Attwood serve North America as well as nearly 80 additional countries
Engines:
• Fond du Lac, Wisconsin
• Suzhou, Peoples Republic of China
• Komagane, Japan (joint venture with Tohatsu Motor)
Parts/assembly:
• St. Cloud, Florida
• Lowell, Michigan
• Verviers, Belgium
• Juarez, Mexico
Mercury Marine employees:
More than 5,300 worldwide
Distribution:
• More than 7,000 dealers and distributors worldwide
• Nearly 4,000 dealers/retailers in the U.S.
History
1939 – Founded as Kiekhaefer Corporation
1947 – Lightning 10hp Outboard
1956 – Mark 75 Outboard
1961 – Brunswick acquires Kiekhaefer Corporation, predecessor of Mercury Marine
1961 – MerCruiser® sterndrive engine-and-drive packages unveiled
1996 – OptiMax® DFI Two-Stroke Outboard
2002 – SmartCraft® Technology is introduced
2004 – Verado®, industry’s first production supercharged outboard
2007 – Zeus® propulsion system with Joystick Piloting for Pods
2008 – Axius® propulsion system with Joystick Piloting for Sterndrives
2009 – 8.2L Sterndrive engine/drive package is introduced
2012 – 150hp FourStroke, experiences one of Mercury’s most successful launches ever
2013 – Joystick Piloting for Outboards is introduced
Eco-technology expands with introduction of Enertia® Eco-propeller
Product Awards 2004 - 2013:
• Five MotorBoating magazine “Best of” Awards
• Five JD Power and Associates® Awards
• Four IBEXSM Innovation Awards
• Two Field & Stream® “Best of” Awards
2011 – 2013 – Mercury initiates expansion projects to manufacturing areas, and one expansion project to Product Development and Engineering.
Consolidation of sterndrive/outboard production to Wisconsin completed.
Financial Profile
$ in millions 2011 2012 20132013 vs. 2012
Change
Revenue $1,905 $1,989 $2,088 +5%
Operating earnings1 $229 $248 $284 +15%
Operating margin1 12.0% 12.5% 13.6% +110bps
1 Excludes restructuring charges of $11 million in 2011 and $4 million in 2012
Helping Active People Live Active Lives6
Recreational Fiberglass Pontoon and Fish
Propulsion: Sterndrive (S)/Inboard (I)/Outboard (O) Propulsion: Outboard
Runabout Cuddy Deck Cruisers Yachts Pontoon Freshwater Saltwater
Bayliner S,O S S,0 S3
Boston Whaler O
Crestliner O
Cypress Cay O
Harris FloteBote O
Lowe O O O
Lund1 O
Meridian I
Princecraft O O O
Quicksilver O S,O O
Rayglass2 S,O
Sea Ray S,O S S,O S,I,O I
Uttern O O
Brunswick Commercial & Government Products
Brunswick CompetesAcross Many Segments
Brands
Boat SegmentBrunswick brands are the world leaders in pleasure boats
21%
44%
35%
2013 Revenue by Category
44% – Aluminum
35% – Fiberglass - Sterndrive/Inboard
21% – Fiberglass - Outboard
8%
64%
19%
3%5%
1%
2013 Revenue by Region
64% – U.S.
19% – Canada
8% – Europe
5% – Latin America
3% – Asia Pacific
1% – Africa & Middle East1 Lund also makes fiberglass fishing boats
2 Rayglass/Protector also makes rigid inflatable boats
3 Sold in Latin America only
7
Global Competitors
Competitive LandscapeBrunswick Boat Advantages
ManufacturingLocations, Employees, Distribution
• Highly fragmented industry, over 1,000 manufacturers in U.S. alone
• Strong brands with leading market shares
• Broad product portfolio known for quality and value
• Strong global dealer network
• Leading product development process and capabilities
• Best in class service and support
• Edgewater, Florida
• Palm Coast, Florida
• Fort Wayne, Indiana
• New York Mills, Minnesota
• Lebanon, Missouri
• Vonore, Tennessee
• Joinville, Santa Catarina, Brazil
• Princeville, Quebec, Canada
• Reynosa, Mexico
• Auckland, New Zealand
• Augustow, Poland1
• Vila Nova de Cerveira, Portugal
Boat Group employees:
More than 3,700 employees worldwide
Distribution:
More than 2,850 dealers worldwide
History
1957 – Bayliner established, acquired by Brunswick 1986
1958 – Boston Whaler founded, acquired by Brunswick 1996
1959 – Sea Ray established, acquired by Brunswick 1986
2004 – 2005 – Brunswick acquires aluminum boat brands, including Harris FloteBote and Lund
2012 – Sea Ray 370 Venture® sport cruiser is 2012 “Boat of the Year”
Quicksilver wins “Starter Boat of the Year” in Europe; three years running
2013 – Bayliner introduces value priced Element™ bowrider for about $12,999, revamps deck boat line-up
Boston Whaler 230 Vantage®, Harris FloteBote Crowne™ are innovation award winners
Sea Ray introduces popular 350SLX and 510 Sundancer
Ft. Wayne pontoon operation opens new plant to double factory space; New York Mills expansion commences in Minnesota
Recreational Fiberglass Pontoon and Fish
Runabout Cuddy Deck Cruisers Yachts PontoonAluminum Freshwater
Fiberglass Freshwater
Fiberglass Saltwater
Tahoe Jeanneau Hurricane Monterey Beneteau Bennington Tracker Ranger Sea Hunt
Jeanneau Beneteau Tahoe Jeanneau Azimut Tracker Alumacraft Nitro Scout
Chaparral Chaparral Chaparral Princess Godfrey Smoker Skeeter Grady White
Cobalt Regal
Financial Profile
$ in millions 2011 2012 20132013 vs. 2012
Change
Revenue $1,008 $1,003 $1,032 +3%
Operating loss2 $(19) $(7) $(6) +17%
Operating margin2 (1.9)% (0.7)% (0.6)% +10bps
1 Contract boat yard 2 Excludes restructuring charges of $8 million in 2011, $21 million in 2012, and $16 million in 2013
Helping Active People Live Active Lives8
2013 Revenue by Category1
50% – Commercial (Cardio)
28% – Commercial (Strength)
78% – (Commercial Equipment)
14% – Consumer and Billiards
8% – Service
Brands Products and Servicesby Category and Region
Life Fitness
Hammer Strength
High-end fitness equipment for commercial and home use
Cardio Equipment
• Treadmills
• Lifecycle® exercise bikes
• Elliptical cross trainers
• Functional trainers
• Summit™ trainers
• Stairclimbers
• Lifescape™ software, attachable monitors for entertainment, data display
• LFopen™ platform to seamlessly integrate end users’ preferred fitness apps and websites
Strength Equipment
• Motion Technology Selectorized™ equipment, which allows users to obtain more proportionate results and add more strength-training variety to workouts
• Plate loaded
• Benches and racks
8%
50%
14%
28%
23% 50%
4%
12%
7%
4%
Fitness SegmentLife Fitness is the global leader in exercise equipment
2013 Revenue by Region1
50% – U.S.
23% – Europe
12% – Asia Pacific
7% – Latin America
4% – Canada
4% – Africa & Middle East
1 Restated results reflect the inclusion of Billiards business
9
Competitive LandscapeLife Fitness Advantages
Financial Profile
ManufacturingLocations, Employees, Distribution
Global Competitors:
• Technogym
• Precor
• Cybex
• Johnson
Advantages:
• Recognized global brands
• Focus on user engagement, biomechanics, innovation and reliability
• Brands have leading market share in diverse customer segments such as health clubs, hospitality, local and federal government and home gyms
• Leader in innovation – Internet connectivity, only self-contained biomechanics lab
• Strong sales and marketing organization
• Franklin Park, Illinois
• Falmouth, Kentucky
• Ramsey, Minnesota
• Kiskoros, Hungary
Life Fitness employees:
More than 1,800 worldwide
Distribution:
Commercial sales are handled through the Life Fitness direct sales force, domestic dealers and international distributors. Consumer products are available at specialty retailers, select mass merchants, sporting goods stores, international distributors and the Life Fitness website.
History
$ in millions 2011 20121 20131 2013 vs. 2012 Change
Revenue $635 $657 $716 +9%
Operating earnings $94 $105 $108 +3%
Operating margin 14.7% 15.9% 15.1% (80bps)
1968 – Lifecycle® stationary bike invented
1977 – Life Fitness founded, iconic Lifecycle is first product
1997 – Brunswick purchases Life Fitness
Acquires Hammer Strength
2001 – 500,000th Lifecycle® bike produced
2007 – Life Fitness delivers seamless iPod® integration with exercise equipment and launches all-new Life Fitness® cardio line
2012 – Industry’s only open technology platform launched
Lifescape™ feature offers on-demand content, simulates world’s top trails for training
Lifecycle® GX group cycling bike introduced
Synrgy360™ group training system unveiled
1 Restated results reflect the inclusion of Billiards business
Helping Active People Live Active Lives
Bringing people together since 1845