Brunswick Corporation (NYSE:BC) Q4 2022 Earnings Call Transcript

Another factor is, I think, as you saw that, although the boat market is down, the outboard engine market is anything but, so even though it was essentially flat to last year, I think you know what is happening with our share gains, and we anticipate those share gains continuing as we get the capacity online. And I’m even excited about the introduction of Avator. We expect to make thousands of units of Avator this year, and we expect them to be profitable as well. So I think outboard engines in which was a real big strength of ours are not down with the market. And then what we have seen is pretty robust. I know that we were a bit down in the fourth quarter, which we can talk about, but pretty robust voting participation, which led to our P&A business being pretty much flat on a constant currency acquisitions basis.

So we continue to see that good participation. So I think some components of that downside story occurred to some extent. But I think our response to it and the way that the market has developed in our favor, particularly in high horsepower, more premium product has mitigated a lot of that impact, and we don’t foresee that changing. Ryan, I don’t know if you have any other .

Ryan Gwillim: Maybe the two points I would remind people is our OpEx control, our ability to really watch cost and counteract some of the market implications has been proven this year, and I think we will continue to be disciplined throughout 2023. The other item that we kind of talk about every call, every new product that comes out is at a stronger margin profile than the one it is replacing and the focus on design for manufacturing at the right cost continues to really be able to keep a higher floor on propulsion certainly and in P&A. James, if you look at the $9.50 case, if you go down and look at kind of the – that really has to assume the worst of all of our guidance pieces, which we find very unlikely to happen in an environment that we are seeing today, certainly held up by propulsion and P&A with the boat business continue to be healthy despite lower value.

James Hardiman: Got it and then one more question for me. You talked about how, in most cases, wholesale is going to match retail this year, except for that premium segment. Maybe you can help us quantify how big that exception is. And ultimately, if I think about wholesale versus retail and units, what sort of a delta we are looking at. And I guess, how much that adds to these numbers that is sort of that remaining inventory fill, if there is a way to think about that from an earnings perspective?

David Foulkes: Yes. I don’t know if I can connect all the dots, so I might ask help from right. I would say a significant factor here is we were all through last year, essentially ramping up a second large Boston Whaler facility and Boston Whaler, retail and wholesale will continue to be constrained. So we could have sold a lot more Boston Whalers, last year, we were better off with Sea Ray. So Boston Whaler inventory continues to be very low. That facility is now up and running and being productive. So currently, we are anticipating that facility running pretty much at capacity unless something materially changes. I still do not anticipate at least for Boston Whaler that we will get fully to equilibrium. This year, we might be Sea ray. Ryan, do you have anything?