IT security incident hits Brunswick Corporation’s Q2 sales

An IT security incident that resulted in lost production days was partly to blame for falling second quarter revenues reported by Brunswick Corporation, owners of a raft of fishing boat brands, propulsion, engine parts and accessories.

Net sales for the quarter were down from $1.84 billion in 2023 to $1.7 billion this year. Other factors driving the fall included softer market conditions. Price increases and new product performance mitigated the impact.

“Our businesses executed a strong second quarter, benefiting from market share gains, well-received new products, solid operational performance and diligent cost control,” said Brunswick CEO David Foulkes.

“The new boat market remains challenging, and year-to-date new boat sales remain below 2022. But there has been relative improvement in recent months, with preliminary June US SSI main powerboat retail turning positive and Brunswick outperforming the industry both in June and year-to-date.”

Foulkes added that the disruption associated with the IT security incident was most significant in the company’s propulsion and engine parts and accessories segments. And because of the proximity to the end of the quarter, there was limited opportunity to recover within the period. However, there are no significant residual impacts. Foulkes also said the impact of the IT security incident, combined with continued pressure on consumers, were reasons to be cautious regarding the second half financial performance. Updated 2023 guidance anticipates net sales of $6.7 billion to $6.8 billion, with third quarter sales flat to down versus 2022.