賓士域 (BC) 2024 Q2 法說會逐字稿

Good morning and welcome to Brunswick Corporation second quarter 2024 earnings conference call. (operator instructions) Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

早上好，歡迎參加 Brunswick Corporation 2024 年第二季財報電話會議。（操作員指示）今天的會議將被錄音。如果您有任何異議，您可以此時斷開連接。

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

現在我想介紹 Neha Clark，Brunswick Corporation 企業財務資深副總裁。請繼續。

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.

早安，感謝您加入我們。今天早上與我一起參加電話會議的是 Brunswick 執行長 Dave Foulkes 和財務長 Ryan Gwillim。在我們開始準備好的發言之前，我想提醒大家，在這次電話會議中，我們的評論將包括某些有關未來結果的前瞻性陳述。

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.

請記住，我們的實際結果可能與這些預期有重大差異。有關需要考慮的這些因素的詳細信息，請參閱我們最近向 SEC 提交的文件和今天的新聞稿。所有這些文件均可在我們的網站 Brunswick.com 上取得。

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

在我們的演示中，我們將提及某些非公認會計準則財務資訊。GAAP 與非 GAAP 財務指標的調節表在本簡報的附錄以及今天的業績所附的未經審計的合併財務報表的調節部分中進行了準備。

I will now turn the call over to Dave.

我現在將把電話轉給戴夫。

Thanks Neha, and good morning everyone.

謝謝尼哈，大家早安。

With high interest rates continuing to pressure consumer budgets and suppress discretionary spending, the introduction of new model year products at the beginning of the important month of June did not catalyze boat purchases as we had anticipated, and our second quarter results were slightly below expectations.

由於高利率繼續給消費者預算帶來壓力並抑制可自由支配支出，在重要的六月初推出的年度新產品並沒有像我們預期的那樣促進船舶購買，我們第二季度的業績略低於預期。

Without strong peak season momentum, the continued slower retail sales, combined with higher levels of discounting and carrying costs, have increased pressure on dealer and channel partner profit margins resulting in ongoing conservative wholesale ordering patterns even for new model year products. In turn, this is causing OEMs to maintain lower boat production rates through the main selling season, with impacts to Propulsion and

由於沒有強勁的旺季勢頭，零售銷售持續放緩，再加上折扣和運輸成本較高，經銷商和通路合作夥伴的利潤率面臨更大的壓力，導致即使對於新車型年的產品，批發訂購模式也持續保守。反過來，這導致原始設備製造商在主要銷售季節保持較低的船舶生產率，從而影響推進力和

Navico Group OEM orders. With slower new boat retail sales in the peak sales months, we now expect full year unit retail sales to be down approximately 10% versus our original forecast of flat. As a result of heightened demand stimulation efforts focused on clearing more aged field inventory, our remaining field inventory is very fresh, with approximately 85 % of units being current, and our focus continues on leveraging our new products and adjusting production levels to maintain or gain share in key categories while diligently managing field inventory levels to end the year with weeks-on-hand at appropriate levels and units below prior year.

Navico 集團 OEM 訂單。由於銷售高峰月份新船零售額放緩，我們現在預計全年單位零售額將比我們最初預測的持平下降約 10%。由於加強了需求刺激工作，重點是清理更多老化的現場庫存，我們剩餘的現場庫存非常新鮮，大約85% 的設備是現有的，我們的重點繼續是利用我們的新產品並調整生產水平以維持或增加分享關鍵類別，同時努力管理現場庫存水平，以期年底庫存週數保持在適當水平，單位數量低於上年。

Despite sales and earnings below guidance, the resiliency of our portfolio is being demonstrated, with our recurring revenue businesses and channels, including our engine P&A business, Propulsion’s repower business, Freedom Boat Club, and Navico Group's aftermarket sales, contributing more than 50% of our Q2 adjusted operating earnings.

儘管銷售額和收益低於預期，但我們的投資組合的彈性正在得到證明，我們的經常性收入業務和渠道，包括我們的發動機P&A 業務、Propulsion 的再動力業務、Freedom Boat Club 和Navico Group 的售後市場銷售，貢獻了超過第二季調整後營業利潤的 50%。

In addition, our businesses delivered strong cash flow, enabling $170 million to be deployed for share repurchases year-to-date and further solidifying our focus on returning value to shareholders.

此外，我們的業務提供了強勁的現金流，使年初至今能夠部署 1.7 億美元用於股票回購，並進一步鞏固了我們對股東回報價值的關注。

Turning to some highlights from our segments in the quarter, despite our propulsion business, delivering lower sales and operating earnings versus the second quarter of 2023 year to date, we continue to gain share in outboard engines with more than 48% overall share of the US outboard market.

轉向本季度各細分市場的一些亮點，儘管我們的推進業務的銷售額和營業利潤較2023 年第二季度迄今有所下降，但我們在舷外發動機方面的份額繼續增加，在美國的總體份額超過48%舷外機市場。

In addition, propulsion controls, rigging and propellers product categories had a strong quarter with operating margins ahead of the same period in 2023. Our Flite e-foil business also had its strongest sales month in June.

此外，推動控制、索具和螺旋槳產品類別的季度表現強勁，營業利潤率高於 2023 年同期。我們的 Flite 電子箔業務也在 6 月實現了最強勁的銷售月份。

With boating participation continuing to be very solid in our major global markets. Our engine parts and accessories business had a strong quarter, with sales and operating earnings up versus the second quarter of 2023, and we completed the full transition of engine P&A distribution.

在我們的主要全球市場中，划船活動的參與度仍然非常高。我們的引擎零件業務季度表現強勁，銷售額和營業利潤較 2023 年第二季度有所增長，並且我們完成了發動機 P&A 分銷的全面轉型。

So our new state-of-the-art facility in Branchburg, Indiana. As anticipated, Navico group had lower sales and operating earnings versus the second quarter of 2023 due to reduced marine OEM order rates and persistently slow RV orders, but continued to show stability with sequential improvement in aftermarket sales and overall sales and earnings consistent with first quarter results.

因此，我們在印第安納州布蘭奇堡建立了最先進的新工廠。正如預期的那樣，由於船舶OEM 訂單率下降和房車訂單持續緩慢，Navico 集團的銷售額和營業利潤較2023 年第二季度有所下降，但由於售後市場銷售的連續改善以及整體銷售和收益與第一季度一致，繼續表現出穩定性結果。

Finally, our boat business had a solid performance given market conditions, with sales and operating earnings below the prior year quarter, consistent with lower planned production levels. Freedom boat club continued to deliver steady membership sales growth by adding two more flagship locations in Denmark and the UK, and recording an impressive 200,000 member trips in the quarter.

最後，考慮到市場條件，我們的船舶業務表現穩健，銷售額和營業利潤低於去年同期，與較低的計畫生產水準一致。自由之船俱樂部在丹麥和英國又增加了兩家旗艦店，繼續實現會員銷售的穩定成長，並在本季度記錄了令人印象深刻的 20 萬次會員旅行。

Expanding on the external environment with the majority of the retail selling season behind those, it is evident that the 2024 US marine retail market is underperforming. This is our initial expectations due to the continuing high interest rate environment. And while it is now a higher probability of interest rate relief beginning in September, this will be after the main selling season and will likely have a minor impact on 2024 and bit more of a potential tailwind for 2025.

考慮到外部環境的擴大，零售銷售季節的大部分時間已經過去，2024 年美國海運零售市場顯然表現不佳。這是我們對持續高利率環境的初步預期。雖然現在從 9 月開始降息的可能性較高，但這將是在主要銷售季節之後，可能對 2024 年產生較小的影響，並為 2025 年帶來更大的潛在推動力。

Dealer sentiment is sequentially improving. However, the slower pace of wholesale orders continues as the weaker retail environment drives a desire for more conservative inventory levels.

經銷商情緒逐漸改善。然而，由於疲軟的零售環境促使人們對更保守的庫存水準的渴望，批發訂單的步伐繼續放緩。

Discounting and promotion levels remain elevated, particularly on prior model year products to stimulate retail movements. Our investments in digital platforms continues to drive benefits across all brands with close to 40% of boats of Freedom Boat Club membership sales in Q2 being digitally assisted.

折扣和促銷水平仍然很高，特別是對以前型號的產品，以刺激零售活動。我們對數位平台的投資繼續推動所有品牌獲益，第二季自由之船俱樂部會員銷售的近 40% 的船隻得到了數位化協助。

OEMs and channel partners continued to moderate production levels to adjust to the environment. And in the absence of external stimulus, we do not now foresee this pattern changing significantly through the remainder of the season.

原始設備製造商和通路合作夥伴繼續降低生產水準以適應環境。在沒有外部刺激的情況下，我們現在預計這種模式在本賽季剩餘時間不會發生重大變化。

Despite these challenging conditions, we continue to see strong boating participation, supporting our resilient recurring revenue businesses. We continue to invest in and launch many exciting new products and technologies across all our businesses and product-lines with the intent to position us for market share gains and to ensure we have the freshest portfolio when the market returns to growth.

儘管面臨這些充滿挑戰的條件，我們仍然看到強勁的划船參與度，支持了我們富有彈性的經常性收入業務。我們繼續在所有業務和產品線中投資並推出許多令人興奮的新產品和技術，旨在提高我們的市場份額，並確保在市場恢復成長時我們擁有最新的產品組合。

Finally, the previously proposed North Atlantic right-wing vessel speed restriction rule was delayed to November 2024 on the administration's most current regulatory agenda.

最後，先前提出的北大西洋右翼船舶限速規則在政府最新的監管議程上被推遲到 2024 年 11 月。

Moving now to US retail performance we saw a weaker Q2 US retail market than anticipated with US industry new boat unit sales in the quarter declining significantly versus the second quarter of 2023, driven particularly by a weaker June.

現在轉向美國零售表現，我們看到第二季度美國零售市場弱於預期，該季度美國行業新船單位銷量與 2023 年第二季度相比大幅下降，特別是受到 6 月份疲軟的推動。

US outboard engine industry retail units declined 6% in the second quarter versus prior year. As mentioned, Mercury Marine US overall year to date up of market share is holding in around 48%, up slightly from 2023. And our share of 350 horsepower and above engines exceeds 70%

美國舷外機產業第二季零售量與去年同期相比下降了 6%。如前所述，水星海事美國今年迄今的整體市佔率維持在 48% 左右，比 2023 年略有上升。350馬力以上引擎佔有率超過70%

As customer OEM's modulate production, which in some cases requires extended manufacturing shutdown periods. We expect market share data across engine and boat brands may be more noisy than normal for the remainder of the year, although we anticipate gaining additional share in some areas.

由於客戶 OEM 調整生產，在某些情況下需要延長生產停工期。我們預計今年剩餘時間引擎和船舶品牌的市佔率數據可能會比正常情況更加吵雜，儘管我們預計在某些領域會獲得額外的份額。

During the quarter, we continue to diligently monitor pipeline levels, and we ended the quarter with 33 weeks on hand and 11,500 units in the US pipeline, slightly above prior year. In order to manage year end pipelines on a full year basis, we currently plan to wholesale around 1,500 fewer units than internal retail unit sales, which represents approximately a 7% reduction and ending inventory versus prior year.

在本季度，我們繼續努力監控管道水平，本季度結束時，我們在美國管道中的庫存量為 33 週，數量為 11,500 台，略高於去年同期。為了管理全年的年終管道，我們目前計劃批發數量比內部零售數量少約 1,500 件，這意味著與去年相比，期末庫存減少了約 7%。

Before I turn it over to Ryan, I wanted to quickly walk through the components of our updated adjusted EPS guidance of between $5 and $5.50 per share. As you can see, just about all of the anticipated decline from our view in April, its related to the softer market conditions that have persisted through the main retail selling season and the resulting channel dynamics we believe will be we will experience for the remainder of 2024.

在將其交給 Ryan 之前，我想快速瀏覽一下我們更新後的每股 5 至 5.50 美元調整後 EPS 指導的各個組成部分。正如您所看到的，我們認為 4 月預期的所有下降都與主要零售銷售季節持續疲軟的市場狀況以及由此產生的通路動態有關，我們相信我們將在接下來的時間內經歷這種情況。 2024 年。

The most significant change since April is the combined impact of the weaker market and resulting lower wholesale sales in an environment where we anticipate pipeline inventories to be flat to down across all our businesses.

自四月以來最顯著的變化是市場疲軟和批發銷售下降的綜合影響，我們預計所有業務的管道庫存將持平或下降。

We plan to wholesale several thousand fewer boats this year than originally planned. And despite continuing to take market share, Mercury will correspondingly shipped fewer engines to OEM partners. We have also lowered production to be consistent with demand.

我們計劃今年批發的船隻比原計劃少幾千艘。儘管水星繼續佔據市場份額，但向 OEM 合作夥伴交付的引擎數量將相應減少。我們也降低了產量以滿足需求。

The next two factors are directly related to the slower market conditions. First, all our businesses are experiencing lower absorption and slightly higher manufacturing costs due to the lower production levels.

接下來的兩個因素與市場狀況放緩直接相關。首先，由於生產水準較低，我們所有業務的吸收率都在下降，製造成本也略有上升。

Second, we've continued to use promotions and discounting to drive retail sales and to keep our inventory as fresh as possible. Offsetting these factors is our combined focus on driving down controllable operating expenses.

其次，我們繼續利用促銷和折扣來推動零售銷售並盡可能保持庫存新鮮。為了抵​​消這些因素，我們共同致力於降低可控的營運費用。

We anticipate ending the year with OpEx down almost 10% from initially planned levels while still protecting spending on key growth initiatives and projects to advance our strategic objectives.. Despite this year not unfolding as we'd hoped and anticipated, we continue to make prudent decisions and expect to finish 2024 in a strong balance position while preparing to fully capture the upside when the market. So that's the growth.

我們預計今年年底營運支出將比最初計劃的水平下降近 10%，同時仍保護關鍵成長計畫和項目的支出，以推進我們的策略目標。儘管今年的情況並未如我們所希望和預期的那樣發展，但我們將繼續做出審慎的決定，並期望在 2024 年結束時保持強勁的平衡狀態，同時準備充分抓住市場的上行空間。這就是成長。

I'll now turn the call over to Ryan to provide additional comments on our financial performance and outlook.

我現在將把電話轉給瑞安，就我們的財務表現和前景提供更多評論。

Thanks, Dave, and good morning everyone. Brunswick’s second quarter results were slightly below expectations but remained resilient despite a challenging macro economic environment and much softer US retail marine market anticipated. Versus the second quarter of 2023, net sales in the quarter were down 15% with adjusted operating margins of 12.5%, resulting in an adjusted EPS of $1.80.

謝謝戴夫，大家早安。Brunswick 第二季業績略低於預期，但儘管宏觀經濟環境充滿挑戰且預計美國零售海運市場將大幅疲軟，但仍保持彈性。與 2023 年第二季相比，該季淨銷售額下降 15%，調整後營業利益率為 12.5%，調整後每股收益為 1.80 美元。

Gross margins continued to remain resilient. Adjusted operating expenses were down $32 million versus Q2 of 2023. And free cash flow performed better than anticipated, with free cash flow conversion of approximately 140%.

毛利率持續保持彈性。調整後營運費用較 2023 年第二季減少 3,200 萬美元。自由現金流的表現優於預期，自由現金流轉換率約 140%。

Second quarter sales were below prior year as the impact of continued lower wholesale ordering by dealers and OEMs, coupled with higher discounts in certain business segments was only partially offset by annual price increases and benefits from well received new products.

第二季銷售額低於去年同期，因為經銷商和原始設備製造商批發訂單持續減少以及某些業務部門折扣較高的影響僅部分被年度價格上漲和廣受好評的新產品帶來的好處所抵消。

Adjusted operating earnings were down versus prior year as a result of the impact of lower net sales and higher manufacturing costs, primarily related to absorption from lower production, partially offset by significant cost control measures throughout the enterprise.

由於淨銷售額下降和製造成本上升，調整後的營業利潤較上年有所下降，這主要與產量下降的吸收有關，但整個企業採取的重大成本控制措施部分抵消了這一影響。

On a year-to-date basis, sales are down 19%, resulting in an adjusted diluted EPS of $3.14, down 36%. The entire enterprise remains focused on reducing operating expenses, which are down $43 million versus first half of 2023 levels.

年初至今，銷售額下降 19%，調整後攤薄每股收益為 3.14 美元，下降 36%。整個企業仍然專注於減少營運支出，與 2023 年上半年的水平相比，營運支出減少了 4,300 萬美元。

Finally, year to date, operating deleverage of 27% remains slightly higher than the midpoint of our assumptions and our downside scenarios, but has been negatively impacted by unique factors, including increased discounting, elevated depreciation expense, primarily related to recent capacity projects in propulsion and lower absorption across the enterprise due to lower production volumes.

最後，今年迄今為止，27%的營運去槓桿率仍略高於我們的假設和下行情境的中點，但受到獨特因素的負面影響，包括折現增加、折舊費用增加，主要與近期推進產能項目有關由於產量下降，整個企業的吸收率也較低。

Now, we'll look at each reporting segment, starting with our propulsion business.

現在，我們將研究每個報告部分，從我們的推進業務開始。

Sales in our Propulsion segment were down 21% with lower production rates at OEM boat manufacturers resulting in fewer engine orders in the quarter, while repower shipments were slightly up versus Q2 2023. The high margin controls, rigging and props business had slightly lower sales, but higher adjusted operating margins than prior quarter, led by a strong aftermarket performance.

由於 OEM 船舶製造商的生產率較低，導致本季引擎訂單減少，我們推進部門的銷售額下降了 21%，而再動力出貨量較 2023 年第二季略有上升。高利潤控制、索具和道具業務的銷售額略有下降，但在強勁的售後市場表現的帶動下，調整後的營業利潤率高於上一季。

Adjusted operating margins were below prior year, primarily due to the impact of lower net sales and higher manufacturing costs, including absorption for lower production, partly offset by the lapping of prior year unfavorable capitalized inventory variances and accelerated cost control measures.

調整後的營業利潤率低於去年同期，主要是由於淨銷售額下降和製造成本上升（包括吸收產量下降）的影響，部分被去年不利的資本化庫存差異和加速成本控制措施的抵消所抵消。

Our aftermarket-led engine parts and accessories business had a strong quarter with sales margins and operating earnings up versus second quarter of 2023. With the transition to the Brownsburg, Indiana distribution facility now complete, this business was able to service product to customers around the globe, leading to year-over-year sales increases in both US and international market.

我們以售後市場為主導的引擎零件業務季度表現強勁，銷售利潤率和營業利潤較 2023 年第二季度有所增長。隨著印第安納州布朗斯堡分銷設施的過渡現已完成，該業務能夠為全球客戶提供產品服務，從而導緻美國和國際市場的銷售額同比增長。

Navico group reported a sales decrease of 8%, driven primarily by reduced sales to marine OEMs as they balanced production levels to match retail ordering patterns, partially offset by strong new product momentum and while slow some improvement in RV sales trends. Segment adjusted operating earnings decreased as the impact from lower sales and increased discount activity was only partially offset by lower operating expenses.

Navico 集團報告銷售額下降8%，主要是由於船舶原始設備製造商的銷售額減少，因為他們平衡生產水平以匹配零售訂購模式，部分被強勁的新產品勢頭所抵消，同時房車銷售趨勢的改善有所放緩。由於銷售額下降和折扣活動增加的影響僅部分被營運費用下降所抵消，部門調整後營運收益有所下降。

Finally, our boat business delivered steady results despite planned softer wholesale orders as its channel partners continue to order cautiously, partially offset by the favorable impact of modest multiyear pricing and share gains.

最後，儘管計劃中的批發訂單疲軟，但我們的船舶業務仍取得了穩定的業績，因為其通路合作夥伴繼續謹慎訂購，部分被溫和的多年定價和股票收益的有利影響所抵消。

The segment delivered adjusted operating margins within expectations as the impact of the net sales declines and lower absorption from the reduced production was partially offset by pricing and continued cost control.

該部門調整後的營業利潤率符合預期，因為淨銷售下降和產量減少造成的吸收率下降的影響被定價和持續的成本控制部分抵消。

Freedom Boat Club, which is included in Business Acceleration, had another solid quarter, contributing approximately 10% of the Boat segment's revenue during the quarter while seeking very steady membership growth despite the macroeconomic uncertainty.

包含在業務加速中的自由船俱樂部在本季度的收入中貢獻了約 10%，同時儘管宏觀經濟存在不確定性，但仍尋求非常穩定的會員成長。

We thought we'd take a moment to remind investors how our shaping of the portfolio over the last 15 years has resulted in strikingly different financial performance despite a very similar retail boat market. 2010 was the last time when approximately 140,000 boat units were retailed in the United States.

我們想花點時間提醒投資者，儘管零售船舶市場非常相似，但過去 15 年我們對投資組合的塑造如何導致了截然不同的財務表現。 2010 年是美國最後一次零售約 14 萬艘船的情況。

That year, Brunswick had $3.4 billion of sales and lost more than $0.50 a share. Since that year, Brunswick has more than tripled the size of its aftermarket P&A business, divested non-core businesses and gain more than 1,000 basis points of share in outboard engines.

那一年，Brunswick 的銷售額為 34 億美元，但每股虧損超過 0.50 美元。自那一年以來，Brunswick 的售後 P&A 業務規模擴大了兩倍多，剝離了非核心業務，並在舷外機領域獲得了超過 1,000 個基點的份額。

Our boat business is much healthier leaner today than it was in 2010, as evidenced by this business being strongly profitable this year versus losing significant earnings in 2010 on similar global wholesale orders.

如今，我們的船舶業務比 2010 年更加健康、精簡，今年該業務的盈利強勁，而 2010 年類似的全球批發訂單卻大幅虧損，這一點就證明了這一點。

Finally, we are keenly aware that our current guidance is slightly below the $6 downside case we laid out several years ago. Although we'd argue that we're still well within a reasonable margin of error for this type of exercise the main components impacting the guidance are the reset of our P&A businesses after the post-COVID de-stocking and more cautious wholesale ordering patterns in all of our businesses, despite elevated discount and promotional activity, which more than offset the better leverage in our boat business, larger market share gains by Mercury and benefits from cost efforts and higher share repurchases during the period.

最後，我們敏銳地意識到，我們目前的指引略低於我們幾年前製定的 6 美元下行假設。儘管我們認為，對於此類活動，我們仍然處於合理的誤差範圍內，但影響指導的主要因素是在疫情後的去庫存和更加謹慎的批發訂購模式之後，我們的 P&A 業務的重置。和促銷活動有所增加，但我們的所有業務都抵消了我們船舶業務中更好的槓桿作用、水星更大的市場份額收益以及在此期間成本努力和更高份額回購帶來的收益。

With the majority of the retail selling season behind us. It is evident that the 2024 US marine retail market is underperforming in peak season versus our initial expectations and is likely to end the year at unit level similar to 2010.

零售銷售旺季的大部分時間已經過去。很明顯，2024 年美國海運零售市場在旺季的表現低於我們最初的預期，且年底的單位水準可能與 2010 年類似。

The macroeconomic environment remains uncertain and while there is now a higher probability of interest rate relief beginning in September, this will occur after the main selling season and will likely have an immaterial impact on our 2024 results, but potentially provide a tailwind for 2025.

宏觀經濟環境仍然不確定，雖然現在從9 月開始降息的可能性較高，但這將發生在主要銷售季節之後，可能對我們2024 年的業績產生無關緊要的影響，但可能為2025 年提供動力。

In this environment, our OEM customers and channel partners continue to order cautiously, and we do not foresee this pattern changing significantly through the remainder of this season. In these challenging conditions, our resilient recurring revenue businesses and channels, including our engine parts and accessories, Freedom Boat Club and the aftermarket repower sales and propulsion and Navico group are fully demonstrating their earnings and cash flow power.

在這種環境下，我們的 OEM 客戶和通路合作夥伴繼續謹慎訂購，我們預計這種模式在本季度剩餘時間內不會發生重大變化。在這些充滿挑戰的條件下，我們富有彈性的經常性收入業務和管道，包括我們的發動機零件和配件、Freedom Boat Club 以及售後市場再動力銷售和推進以及Navico 集團，正在充分展示其盈利和現金流能力。

Through the balance of the year, we will continue to launch many exciting new products to support future share gains while focusing on delivering year-end inventory levels in line with historical norms, executing our strategic plan, investing in our long-term growth initiatives and expect to deliver resilient EPS and cash flow.

在今年餘下的時間裡，我們將繼續推出許多令人興奮的新產品，以支持未來的份額增長，同時專注於實現符合歷史標準的年終庫存水平、執行我們的戰略計劃、投資於我們的長期增長計劃以及期望提供有彈性的每股盈餘和現金流。

The result is the following updated guidance to match these market realities including net sales of between $5.2 billion and $5.4 billion and adjusted diluted EPS in the range of $5 to $5.50, while keeping free cash flow guidance in excess of $350 million.

結果是發布了以下符合這些市場現實的更新指導，包括淨銷售額在52 億美元至54 億美元之間，調整後的稀釋每股收益在5 美元至5.50 美元範圍內，同時保持自由現金流指導超過3.5 億美元。

Please see the appendix for additional guidance regarding anticipated segment metrics.

有關預期細分指標的其他指導，請參閱附錄。

I will wrap up the financial update by sharing certain updated P&L, cash flow and other capital strategy assumptions for the full year, with only two items that have materially changed since our April call. First, we continued to moderate our capital expenditure spending for the year and now anticipate $175 million of CapEx spending for the year. This amount remains far in excess of maintenance capital levels and still allows our businesses to continue with their key growth initiatives.

我將透過分享全年某些更新的損益表、現金流和其他資本策略假設來總結財務更新，其中只有兩項自我們四月份的電話會議以來發生了重大變化。首先，我們持續減少今年的資本支出，目前預計今年的資本支出為 1.75 億美元。這筆金額仍然遠遠超過維持資本水平，並且仍然允許我們的業務繼續其關鍵成長計劃。

Second, furthering our balanced and flexible approach to our capital strategy. We have revised our plan to repurchase between $200 million and $220 million of shares in 2024, consistent with our initial assumptions for the year and have completed $170 million through the second quarter. We plan to spend around $20 million each quarter going forward on share repurchases, balancing repurchases and debt reduction to gradually achieve our desired net leverage target.

其次，進一步推動平衡、靈活的資本策略。我們修改了計劃，在 2024 年回購 2 億至 2.2 億美元的股票，這與我們今年的初步假設一致，並在第二季度完成了 1.7 億美元的回購。我們計劃未來每季花費約2,000萬美元用於股票回購、平衡回購和債務削減，以逐步實現我們預期的淨槓桿目標。

I will now pass the call back over to Dave for concluding remarks.

我現在將把電話轉回給戴夫進行總結演講。

I’m excited to close our prepared remarks by highlighting some recently launched new products and other exciting developments. Flite continues to expand its product line with the introduction of the Ultra L2 e-foil, a light-weight and slim board designed for high maneuverability.

我很高興透過強調一些最近推出的新產品和其他令人興奮的發展來結束我們準備好的發言。Flite 繼續擴大其產品線，推出 Ultra L2 e-foil，這是一款專為高機動性而設計的輕質纖薄板。

During the quarter, we opened the order book for the award-winning Avator 75e and 110e electric outboards. The most powerful engines in the Avator family are well-suited for powering a variety of vessels, including pontoons, runabouts, and rigid-inflatables.

本季度，我們開放了屢獲殊榮的 Avator 75e 和 110e 電動舷外機的訂單。Avator 系列中最強大的引擎非常適合為各種船舶提供動力，包括浮橋、小型快艇和剛性充氣艇。

Among eighty new or updated Brunswick Boat models launched so far in 2024, the all-new Sea Ray SPX 190 and SPX 190 Outboard models, featuring the new Sea Ray design language and many classleading features, were introduced.

在 2024 年迄今推出的 80 款全新或更新的 Brunswick 船型中，推出了全新 Sea Ray SPX 190 和 SPX 190 舷外機型號，該型號採用了新的 Sea Ray 設計語言和許多領先的功能。

Navico Group attended the world’s largest fishing show, ICAST, and showcased several exciting new products from the Simrad and Lowrance brands, including the innovative new Recon electric-steer trolling motor, which has been developed for both freshwater and saltwater anglers and features a unique joystick remote.

Navico Group 參加了世界上最大的釣魚展ICAST，並展示了Simrad 和Lowrance 品牌的幾款令人興奮的新產品，包括創新型新型Recon 電動轉向拖釣馬達，該馬達專為淡水和鹹水垂釣者開發，具有多種功能獨特的操縱桿遙控器。

In addition, the Lowrance brand also launched Eagle Eye, a highly accessible all-in-one live sonar solution, combining CHIRP & DownScan in one transducer, along with detailed CMAP charting.

此外，Lowrance 品牌還推出了 Eagle Eye，這是一種易於使用的一體式即時聲納解決方案，將 CHIRP 和 DownScan 結合在一個感測器中，並提供詳細的 CMAP 圖表。

In the quarter, Brunswick brands won 11 top product awards from Boating Industry Magazine for the 2nd consecutive year and, not to be outdone, Freedom Boat Club continued to expand geographically, with the recently announced additional, flagship locations in Copenhagen and near London.

本季度，Brunswick 品牌連續第二年榮獲《划船工業雜誌》頒發的 11 項頂級產品獎，Freedom Boat Club 也不甘示弱，繼續擴大地域範圍，最近宣佈在哥本哈根和倫敦附近增設旗艦店。

That is the end of our prepared remarks, we will now open the line for questions.

我們準備好的發言就結束了，現在我們開始提問。

(operator instructions) Fred Wightman, Wolfe Research.

（操作員說明）Fred Wightman，Wolfe Research。

Hey, guys. Thanks for the question. I'm wondering if you could just give us maybe a high-level update on how you're getting to that 10% retail number now, I know that there's been some disconnect between what you've seen with your internal registrations and what we've seen from SSI. But just given sort of the state of the macro and what you've seen from the past month or two? What gives you confidence in the updated targets?

嘿，夥計們。謝謝你的提問。我想知道您是否可以向我們提供有關您現在如何達到 10% 零售數字的高級更新信息，我知道您在內部註冊中看到的情況與我們所看到的情況之間存在一些脫節從SSI看到的。但只是給出宏觀的狀態以及您在過去一兩個月中看到的情況？是什麼讓您對更新後的目標充滿信心？

Hi, Brian, it's Dave here. So yes, as a normal over time, I think the our interim retail projections and SSI will align, but as you know, it normally takes a few months to do that. Through Q1, we were at kind of our internal retail was about flat, slightly ahead of the market.

嗨，布萊恩，我是戴夫。所以，是的，隨著時間的推移，我認為我們的中期零售預測和 SSI 將會保持一致，但如您所知，通常需要幾個月的時間才能做到這一點。整個第一季度，我們的內部零售基本上持平，略領先市場。

And then through Q2, we saw a weaker May was down about eight, some things something maybe 8% to 10%, which we expected because of the some multi-year changeover that was happening in June. What we hoped and anticipated was that the new models in June would catalyze some increase in retail, but that didn't happen.

然後到第二季度，我們看到 5 月的疲軟下降了大約 8%，有些可能下降 8% 到 10%，這是我們預期的，因為 6 月發生了一些多年的變化。我們希望且預期的是，6 月的新車型會刺激零售量的一些成長，但這並沒有發生。

And our June is down about 20%, essentially in line with SSI. The difference with SSI is some of the states that report late some of the states that we have the highest market share and particularly in the Midwest for our freshwater product. So we're pretty aligned with what's going on with SSI at the moment with those caveats. So the market really be down high singles it could be, but given the uncertainty level at the moment, I think, 10% is very high singles to 10 is probably reasonable.

我們的 6 月下跌了 20% 左右，基本上與 SSI 一致。與 SSI 的不同之處在於，有些州報告較晚，有些州我們的淡水產品擁有最高的市場份額，特別是在中西部。因此，我們非常同意 SSI 目前的情況，但也有這些注意事項。因此，單打市場確實可能會下跌，但考慮到目前的不確定性，我認為 10% 是非常高的單打，到 10 可能是合理的。

But July is better than June, still a down maybe be kind of mid to high singles at the moment, but that would still give us something in the high singles to 10 at the end of the year. But the by the time we get through July, we're through 75% of retail. So the ability to shift that endpoint much is diminished after the end of July.

但 7 月比 6 月要好，仍然有所下降，目前可能是中高單打，但這仍然會給我們帶來一些在年底達到 10 的高單打的東西。但到了 7 月，我們已經完成了 75% 的零售。因此，7 月底之後，大幅改變該終點的能力就會減弱。

That makes sense. Thinking about the dealer inventory target for year end, you guys talked about a 7% decline. I'm thinking at a high level. If you get there and you hit that target and you think about 2025, do you think '25 is sort of retail and wholesale or in line, do you think that there's restocking that needs to happen? How do you think about the setup?

這是有道理的。考慮到經銷商年底的庫存目標，你們談到了7%的下降。我在高層次思考。如果你達到了這個目標，並且你想到 2025 年，你認為 25 是零售和批發還是一致的，你認為需要補貨嗎？你覺得這個設定怎麼樣？

Well, I think we're approaching the year ends with a conservative view on inventory. And when I say conservative meeting, we're at the low end of what we think is going to be necessary for 2025. And we could talk about 2025 at some point, maybe during the call.

嗯，我認為我們在接近年底時對庫存持保守看法。當我說保守派會議時，我們認為 2025 年所需會議的召開已處於最低水準。我們可以在某個時候談論 2025 年，也許是在電話會議期間。

But I feel as though on a -- across our various segments, with that level of inventory, we will have de-risked any scenario -- any reasonable scenario for for 2025. If you look across inventory levels across the various segments, they're very balanced everywhere.

但我覺得，在我們的各個細分市場，憑藉這樣的庫存水平，我們將降低 2025 年任何場景的風險——任何合理的場景。如果你觀察各個細分市場的庫存水平，你會發現各地的庫存水準都非常平衡。

So by the end of the year, a lot of our value products and aluminum will be firm kind of relatively down. Premium fiberglass will be up a bit versus the end of last year, but really that's necessary because we were under inventoried and those segments are performing relatively better. So I think that's better to be a bit conservative at this point time, I think.

因此，到今年年底，我們的許多價值產品和鋁將相對下跌。與去年年底相比，優質玻璃纖維的價格將會上漲，但這確實是必要的，因為我們的庫存不足，而這些細分市場的表現相對較好。所以我認為現在最好保持一點保守。

Fair enough. Thank you.

很公平。謝謝。

Mike Swartz, Truist Securities.

麥克‧斯沃茨 (Mike Swartz)，Truist 證券公司。

Maybe just to start at high-level broad brushstrokes. Is there any way to think about what maybe the initial dealer volume commitments for your model, your '25 product looks like this time this year versus last year.

也許只是從高層次的粗略開始。有沒有什麼方法可以考慮經銷商對您的型號、您的 '25 產品的初始銷售承諾，今年這個時候與去年相比是多少。

I know there's some differences in the timing of the model year changeover and probably when dealers are thinking about accepting more inventory. But just very high level. Is there any way to think about what that looks like?

我知道車型年份轉換的時間以及經銷商考慮接受更多庫存的時間可能存在一些差異。但只是非常高的水平。有什麼辦法可以想像一下它是什麼樣子的嗎？

Hi, Mike. Yes, at the moment, more than 70% of our planned production for Q3 is accounted for with orders, but which is relatively normal for us. So with brands like Boston Whalitz, 100% accounted for with some of the aluminum brands where we have smaller boats, all the way down to a few thousand dollars boats. That's pretty normal as well. So I think, we're pretty comfortable with the position we're ready for for orders for the third quarter. We know less about Q4 at the moment.

嗨，麥克。是的，目前我們第三季計畫生產的70%以上都是訂單，但這對我們來說是比較正常的。因此，對於像 Boston Whalitz 這樣的品牌，100% 都是一些鋁製品牌，我們有較小的船，一直到幾千美元的船。這也很正常。所以我認為，我們對第三季訂單的準備感到非常滿意。目前我們對第四季所知甚少。

Okay. And then just on the on the cost reduction program, I guess I'm trying to understand it seems like it equates to something in the $70 million to $80 million range. Just trying to understand is that an annualized number? It sounds like that's just for 2024?

好的。然後就成本削減計劃而言，我想我正在努力理解它似乎相當於 7000 萬至 8000 萬美元的範圍。只是想了解這是一個年化數字嗎？聽起來這只是2024年的事？

And then how much of that is actually variable, meaning how much of that would come back in when production comes back?

那麼其中有多少實際上是可變的，這意味著當生產恢復時其中有多少會恢復？

Yeah, Mike, I'll take this Good morning. By the end of the year, OpEx is going to be down pretty close to $100 million, right? somewhere $90 million to $100 million, which is about 10%. Of that, -- Chunk of that is compensation expense, which will obviously be pretty low this year given where we are versus our targets. That force would expect to come back obviously, and we'd reset that at 100% to start 2025.

是的，麥克，我會說早安。到今年年底，營運支出將下降近 1 億美元，對嗎？大約是 9,000 萬到 1 億美元，大約是 10%。其中，很大一部分是補償費用，考慮到我們與目標的差距，今年的補償費用顯然會相當低。這種力量預計會明顯回歸，我們將從 2025 年開始將其重置為 100%。

And then there's pieces that obviously are being delayed spending in 2014 that we would also want to come back to '25 given a better market environment, but it's fair to say that about a third of that, we would say is complete takeout that we would keep out for the very clear, certainly near term high and would not be added back until or if at all when market conditions improved, we were able to spend a little bit more for growth.

然後，有些項目顯然會在 2014 年被推遲支出，鑑於更好的市場環境，我們也希望回到 25 年，但公平地說，其中大約三分之一，我們會說是完全外賣，我們將保持非常明確的近期高點，並且不會增加，直到市場狀況改善，或者如果市場狀況改善，我們能夠為成長多花一點錢。

I think the number is really for 2024 as well. So the impact of that food on 2025 on a run rate basis would be higher.

我認為這個數字也確實適用於 2024 年。因此，從運行率來看，該食品對 2025 年的影響會更大。

Okay, great. Thanks.

好的，太好了。謝謝。

Matthew Boss, JP Morgan.

馬修‧博斯，摩根大通。

Great, thanks. So Dave, maybe could you elaborate on more recent trends that you're seeing in the marketplace if you broke it down across premium versus the value channel? And just larger picture, how best to anticipate the progression into 2025 if you look back at prior cycles?

太好了，謝謝。那麼，戴夫，如果您將其分為溢價管道和價值管道，您能否詳細說明您在市場上看到的最新趨勢？從更大的角度來看，如果回顧先前的周期，如何最好地預測 2025 年的進展？

Yeah, certainly. So I guess what was the I was a premium is still somewhat stronger than value. But I would say the other thing that we're seeing is that some generally fishing related products all the way from Boston Whaler, saltwater fishing at the high end through to some of our aluminum fishing at the more value and kind of core part of our market are all relatively strong.

是的，當然。所以我想我的溢價還是比價值強一些。但我想說的是，我們看到的另一件事是，一些普遍與捕魚相關的產品，從波士頓捕鯨船、高端鹹水捕魚到我們的一些更有價值和核心部分的鋁製捕魚產品。

And the more general-purpose kind of general recreational products seem to be performing somewhat weaker. So that would be things like value. Fiberglass roundabouts, pontoons are definitely down more than the market at the moment.

而較通用的一般娛樂產品似乎表現稍弱。這就是價值之類的東西。玻璃纖維環島、浮橋目前的跌幅肯定比市場還要大。

So those are a couple of ways to come to to kind of break it down at the moment. I think we're fortunate and being strongly indexed to fishing probably about two thirds of our product sufficient related products. So I think the strength of that part of the market continues to favor us going forward. So yeah, it's and those people who are committed to boating on not just for boating, but for other activities like fishing seem to be prioritizing their spending this year versus others who may be. A more inclined to trade-off. One activity a bit more versus another.

因此，目前有幾種方法可以打破它。我認為我們很幸運，我們大約三分之二的產品（足夠的相關產品）與捕魚密切相關。因此，我認為這部分市場的實力繼續有利於我們前進。所以，是的，那些不僅致力於划船而且致力於釣魚等其他活動的人似乎優先考慮今年的支出，而不是其他可能的支出。更傾向於權衡。一項活動比另一項活動多一點。

Great. And then, Ryan, just as we think about industry recovery over time, what's the best EBIT flow-through rates or incremental margins to consider for 2025, just given reductions that you've made on the operating expense?

偉大的。然後，Ryan，正如我們考慮隨著時間的推移行業復甦一樣，考慮到您對營運費用的削減，2025 年要考慮的最佳息稅前利潤流通率或增量利潤是多少？

Yeah, it's a good question. Maybe I'm going to go ahead and just tackle '25. Our views on '25 given your question. But the short answer there is we always believe that we can lever up incrementals at 20% or more. And frankly, we delevered this year at about that same pace. If you normalize for absorption and discounting that 27% and year to date number would look just about right at 20, maybe even a little bit below, but the way to think about '25 for us first, it starts to consumer.

是的，這是一個好問題。也許我會繼續前進並解決'25'問題。鑑於您的問題，我們對 25 年的看法。但簡單的回答是，我們始終相信我們可以將增量槓桿提高到 20% 或更多。坦白說，我們今年以大致相同的速度去槓桿化。如果你將吸收和折扣標準化，那麼 27% 和今年迄今為止的數字看起來就在 20 左右，甚至可能低於一點，但我們首先考慮 25 的方式，它開始消費。

We're obviously assuming slightly, hopefully healthier economic conditions from a rate environment that has begun to come down, but still employment being low GDP still being well as relatively resolute on. Obviously, November is going to show some uncertainty due to the rain, but we'll get through that as we always do.

顯然，我們假設利率環境已經開始下降，經濟狀況略有改善，但就業率仍然較低，GDP 仍然相對穩定。顯然，由於下雨，十一月將會表現出一些不確定性，但我們會像往常一樣度過難關。

The result, there would probably be some stability in the marine market. Just as an aside, we're likely to finish the year main powerboat segment at about 140,000 units. That is 5% above and where we were coming out of the GFC, which was a much tougher macro economic environment.

結果，海運市場可能會有所穩定。順便說一句，我們今年主要摩托艇市場的產量可能會達到約 14 萬艘。這比我們走出全球金融危機時高出 5%，當時的宏觀經濟環境要嚴峻得多。

I think it's reasonable to assume a market then obviously not making a call on the 25 market yet, but I think it's reasonable to assume that a flat market to this year is kind of a floor with some upside into lower even mid-single digits, which should get back half of the market loss this year and would also represent a retail level that is approximately 50% of what we would consider replacement level for the US market.

我認為，假設市場顯然還沒有對 25 市場做出決定是合理的，但我認為，假設今年持平的市場是一種底部，有一些上升空間，甚至是中個位數，這應該會挽回今年一半的市場損失，零售水準也將達到我們認為的美國市場替代水準的約50%。

So from that, you go to the wholesale retail dynamics, which Dave touched on earlier, but in a flat market. I mean wholesale matching retail, you'd get about 1,500 bulk units back, together with the accompanying engine units, not only in our boats, but all across the whole OEM landscape, which by the way, we keep gaining share at Mercury it.

因此，從這裡開始，你就可以看到戴夫之前提到的批發零售動態，但市場表現平淡。我的意思是批發匹配零售，你會得到大約 1,500 個散裝裝置，連同隨附的發動機裝置，不僅在我們的船上，而且在整個 OEM 領域，順便說一句，我們在 Mercury it 上不斷獲得份額。

So we understand the market is a little softer, but one thing that you can always count on is continued market share gains. If you then want to assume that retail next year is slightly up, then you can get to a world where wholesale next year is 10% at units or more greater than this year. And again, with the benefits on the engine side, too.

因此，我們知道市場有點疲軟，但您始終可以信賴的一件事是市場份額的持續成長。如果你想假設明年的零售量略有上升，那麼明年的批發量將比今年增加 10% 或更多。再說一次，引擎方面也有好處。

Then if you look at the Brunswick specific dynamics, again, Mercury continued to take share with new products coming off, continued stability and growth in engine P&A. I know it's been a bit of a sore subject for a couple of quarters, six, six, eight quarters for that engine P&A aftermarket recurring business. It is now showing exactly why we built it up to what it is today and is growing in a market that new sales are down.

然後，如果您再看看 Brunswick 的具體動態，您會發現水星繼續透過新產品的推出、引擎 P&A 的持續穩定和增長來佔據份額。我知道對於引擎 P&A 售後經常性業務來說，這在幾個季度、六個、六個、八個季度中一直是一個令人痛苦的話題。現在它準確地展示了我們為何將其發展到今天的水平，並在新銷量下降的市場中實現成長。

So we have continued stability there. And engine P&A, I would say Navico is really where you're going to start to see some improvement, both on the margin and sales side on the benefits from the cost take-out actions, significant new project products and possibly it has to happen still data and an improved RV market, which remember Navico touched about 10%.

所以我們在那裡保持了持續的穩定。至於引擎P&A，我想說Navico 確實是您將開始看到一些改進的地方，無論是在利潤方面還是在銷售方面，從成本削減行動、重要的新項目產品中獲益，而且可能必鬚髮生這種情況仍然有數據和房車市場有所改善，記得 Navico 觸及了約 10%。

And then you have the positive impact from OpEx as we talked about earlier, and just an overall drive of cash on resulting capital strategy gains, share repurchases and likely lower interest expense with some debt and work we're going to do.

然後，正如我們之前談到的，營運支出會帶來正面影響，而且現金的整體驅動力會帶來資本策略收益、股票回購，以及我們將要做的一些債務和工作可能降低的利息支出。

So the way to look at, we'll see where 25 lands here as we get closer to the end of the year, but it sure seems like there's a lot more tailwinds than headwinds, both for the market, but certainly on the items that the project can control.

因此，隨著接近年底，我們將看到 25 落在哪裡，但似乎順風多於逆風，無論是對市場而言，還是在那些項目可以控制。

Great color, best of luck.

顏色很棒，祝你好運。

James Hardiman, Citi.

花旗銀行的詹姆斯哈迪曼。

Hey, good morning, guys. Thanks for taking my call. I was kind of in and out in the early part of Q&A. You already answered this. I apologize, but that bridge on Slide 9, that 220 in market and pipeline correction, do you get any of that back in a, let's say, for the sake of argument, a flat market with one to one wholesale to retail, you that 220 back, you talked about the 85, that I'm curious about that other big negative.

嘿，早上好，夥計們。感謝您接聽我的電話。在問答的早期部分，我有點進進出出。你已經回答了這個問題。我很抱歉，但是幻燈片9 上的那座橋，即市場和管道修正中的220，您是否可以在一個，比方說，為了爭論起見，一個批發與零售一對一的平坦市場中得到任何回報，您220回來，你談到了85，我對另一個大負面感到好奇。

We do James. In a flat market, you could assume we get 1,500 plus back and then the associated antigen benefit to and again have wholesale matches retail. We get the benefit with our boats, but also putting our engines on, 48 plus percent of boats in the US, we even more with multiple engines.

我們做詹姆斯。在平坦的市場中，您可以假設我們獲得 1,500 多個回報，然後相關的抗原收益將再次與批發和零售相匹配。我們透過我們的船隻獲得了好處，但也打開了我們的發動機，美國 48% 以上的船隻，我們甚至更多地配備了多個發動機。

And that if you could assume retail slightly up. Yeah, you're in a world where wholesale could exceed wholesale this year by 10% plus. So yes, you're getting. You can definitely get a big chunk of that back.

如果你可以假設零售業略有上升的話。是的，今年批發量可能會超過批發量 10% 以上。所以是的，你明白了。你絕對可以拿回一大筆錢。

Got it. And then, you touched on this, Ryan, the notion that we're basically back at GFC levels of retail and we still haven't seen a recession yet. I guess I could put a bullish or bearish spin on that. The bearish then would be that this is a market that's in big kind of secular decline, right?

知道了。然後，瑞安，你談到了這一點，即我們的零售業基本上回到了全球金融危機的水平，而且我們仍然沒有看到經濟衰退。我想我可以對此做出看漲或看跌的解釋。那麼悲觀的是，這是一個長期大幅下滑的市場，對嗎？

That -- even in a relatively healthy macro environment, obviously, not for your industry. We've seen massive declines, I guess the bearish view on that would be this is the work of the Fed and interest rates and everybody sort of underestimated just how interest sensitive these purchases are, and once interest rates begin to come down, we don't need to wait another decade for demand to sort of reflate.

即使在相對健康的宏觀環境下，顯然也不適合您的行業。我們已經看到了大幅下跌，我想對此的悲觀觀點是，這是美聯儲和利率的工作，每個人都低估了這些購買的利率敏感性，一旦利率開始下降，我們就不會不需要再等十年需求就會回升。

I'm curious your thoughts on on big picture. Obviously, the retail is has missed everybody's expectations by up by a good amount over the last couple of years. Thoughts on what you think that means going forward?

我很好奇你對大局的看法。顯然，過去幾年零售業的表現大大低於每個人的預期。您認為這對未來意味著什麼？

Yeah, James. So a good question. I think, broadly any these studies you look at on demographics through to 2030, and we've mentioned this before suggests that the wells you're going to get wealthier. And generally, that's supportive of us just like you, there's four a range of other discretionary items.

是的，詹姆斯。這是個好問題。我認為，總的來說，您所看到的有關 2030 年人口統計的所有研究（我們之前已經提到過）都表明，您將變得更加富裕。一般來說，這就像您一樣支持我們，還有四個其他可自由支配的項目。

I do think what we're seeing is a couple of things here. One is the course that you mentioned the interest rate environment, you mentioned that these purchases are interest rate sensitive and of course they are. But I do think that there are a couple of other kind of layers of impact of interest rates, particularly for some of our consumers.

我確實認為我們在這裡看到了一些事情。一是您提到利率環境的過程，您提到這些購買對利率敏感，當然。但我確實認為利率還有其他一些層面的影響，特別是對我們的一些消費者而言。

It's not just about the fact that financing the purchase is more expensive. It's overall that budgets are pressured more by cumulative inflation and interest rates on other finance purchases. Not to mention the fact that some that there's a confidence issue there. So I think there are various dimensions that are influencing discretionary purchases at the moment beyond simply the finance increased financing costs.

這不僅是因為購買融資成本更高這一事實。整體而言，累積通膨和其他金融購買的利率對預算的壓力更大。更不用說有些人認為那裡有信心問題。因此，我認為目前影響可自由支配購買的因素有很多，而不僅僅是財務增加的融資成本。

I think over time, what we've seen with the cumulative impact of inflation is going to kind of average out over time some last couple of years, we've had relatively small increases and certainly we would anticipate that next year.

我認為隨著時間的推移，我們所看到的通貨膨脹的累積影響將在過去幾年中趨於平均，我們的增長相對較小，當然我們預計明年也會發生這種情況。

So I think there are a number of factors that are in play here, cumulative inflation on the secondary and tertiary impacts of interest rates, but a larger barriers are inhibitors than we had anticipated. But I do think that there's no reason to believe that there's a secular negative trend here.

因此，我認為這裡有很多因素在起作用，累積通膨對利率的二次和三次影響，但比我們預期的更大的障礙是抑制因素。但我確實認為沒有理由相信這裡有長期負面趨勢。

We always also plan to outperform the market. And generally, we've continued to do that particularly obviously on the engine side, but with some of our boat brands which have gained share year to date like Boston Whaler and Sea, that support that kind of wealth accumulation trend.

我們也始終計劃跑贏大盤。總的來說，我們在引擎方面繼續這樣做，尤其明顯，但我們的一些船舶品牌今年迄今為止已經獲得了份額，例如波士頓捕鯨船和海洋，支持了這種財富累積趨勢。

I would also add, James, one stat that we look at pretty carefully as participation across the industry and for registered boats continue to be north of [10 million] just in the US alone. And then you have on top of that, all the growth in the shared models, we're leading the way there and freedom.

詹姆斯，我還要補充一點，我們非常仔細地研究了一項統計數據，因為僅在美國，整個行業和註冊船隻的參與度就繼續超過 [1000 萬]。除此之外，共享模型的所有成長，我們都在引領自由。

So I would caution taking new boat sales as the main metric on a coin, something secular when people are out there, boating as much, if not more than they have been in past years. And I would say new product sales are softened for all the reasons Dave said, but participation remains strong. We don't see any any cracks in that in that participation trend.

因此，我要謹慎地將新船銷量作為硬幣的主要指標，當人們在外面划船時，這就是世俗的東西，如果不是比過去幾年更多的話，也是如此。我想說的是，由於戴夫所說的所有原因，新產品銷售疲軟，但參與度仍然很高。我們沒有看到這種參與趨勢有任何裂痕。

Got it. Thanks.

知道了。謝謝。

Megan Alexander, Morgan Stanley Investment Managers.

梅根亞歷山大，摩根士丹利投資經理。

Hi. Thanks so much for taking your question. I wanted to spend a little bit of time on the Propulsion segment in particular. So maybe the first question on the top line, and then I'll ask a follow up on the margin. So it does seem like the bulk of the reduction on the top line to the guide this year is coming from propulsion.

你好。非常感謝您提出問題。我特別想在推進部分花一點時間。所以也許第一個問題在最上面，然後我會在邊緣問一個後續問題。因此，今年指南收入的大部分減少似乎確實來自於推進力。

I think if I'm doing the math right, looking for declines in the back half, kind of similar to what you saw in the first half, I was curious, I think you said in the prepared remarks, retail engine retail for the industry was down six in 2Q. Was wondering if you could let us know how Mercury compared to that?

我想如果我計算正確的話，尋找後半段的下降，有點類似於你在上半年看到的情況，我很好奇，我想你在準備好的評論中說過，該行業的零售引擎零售第第二季下降了六點。想知道您能否讓我們知道水星與它相比如何？

And then just maybe parse out in the updated guide from a top line perspective, how should we think about kind of the impacts of lower retail than you expected and perhaps taking some units out of the channel in that segment?

然後，也許從頂線的角度分析更新後的指南，我們應該如何考慮零售額低於您預期的影響，以及可能將某些單位從該細分市場的管道中剔除的影響？

So I think the impacts that you're seeing on propulsion are couple of things in terms. In terms of how much down is Mercury versus others, what our share is up year to date. So we're obviously less down than the market and we would anticipate that through this year we will continue to gain share in Mercury. No reason to believe that we won't.

所以我認為你所看到的對推進力的影響有幾個面向。就水星與其他公司相比下降了多少而言，我們的份額今年迄今為止上漲了多少。因此，我們的跌幅明顯低於市場，我們預計今年我們將繼續增加水星的份額。沒有理由相信我們不會。

I think the good news in propulsion at the moment is that obviously, we've had to adjust production down to support market conditions, which are lower than we anticipated, but we've taken pretty prompt action on that.

我認為目前推進方面的好消息是，顯然，我們必須下調產量以支持市場狀況，市場狀況低於我們的預期，但我們對此採取了相當迅速的行動。

The other thing that you're seeing, though, is that with a significant destocking trend at OEM customers and now we look at retail and wholesale across every segment of outboard production and they are back in balance. So I think that's a good trend for us and means that any increase or growth in retail is going to flow pretty directly back to Mercury.

不過，您看到的另一件事是，隨著 OEM 客戶出現顯著的去庫存趨勢，現在我們著眼於舷外機生產各個領域的零售和批發，它們已恢復平衡。因此，我認為這對我們來說是一個很好的趨勢，這意味著零售業的任何成長或成長都將直接流回水星。

But we are in a situation in which OEMs that just not wanting to take any product that they don't think is going to go on the back of a boat in 2024. They know we have production available, which is not always the case in the past. So in many other areas they are ordering the kind of smaller quantities more frequently and making sure that they match what their use patterns are going to be.

但我們面臨的情況是，原始設備製造商只是不想採用任何他們認為 2024 年不會出現問題的產品。他們知道我們有可用的生產，而過去情況並非總是如此。因此，在許多其他領域，他們更頻繁地訂購較小數量的產品，並確保它們符合他們的使用模式。

Did you want to follow up?

您想跟進嗎？

Yeah, I'll just. Wholesale units for engines is going to be down about 20% this year, which is roughly close to one boats would be, which is down kind of 24%. But you're going to see a lot more of that in the back half just because of production schedules were still pretty good in the first half, we have enough inventory days that fully onboard and did slow off quicker than we thought.

是的，我就這樣。今年引擎的批發量將下降約 20%，大致接近一艘船的批發量，下降了 24%。但你會在後半段看到更多這樣的情況，因為上半年的生產計劃仍然相當好，我們有足夠的庫存天數，可以完全上載，並且確實比我們想像的要慢得多。

And again, not because of their choosing other engine providers, but just because production at our OEM partners slowed quicken and through the first couple of quarters, so the back half all you're seeing is that the same dynamic that you're seeing in boats just a little bit later in the year.

再說一次，不是因為他們選擇了其他引擎供應商，而是因為我們的 OEM 合作夥伴的生產在前幾個季度放緩並加快，所以後半段你看到的就是與你看到的相同的動態今年晚些時候才開船。

Both started taking our wholesale out really in the middle of last year and you're just seeing it happen quicker propulsion. But I would say engine pipeline, which again, we can't track. We don't track as closely, but we do know that engine pipeline will be down from the start of the year because we will be under-shipping retail again to start us off at a really nice position in 2025.

兩家公司都在去年年中真正開始批發我們的產品，而且您會看到它的推進速度更快。但我想說的是引擎管道，我們同樣無法追蹤。我們沒有那麼密切地跟踪，但我們確實知道，從今年年初開始，發動機管道將會減少，因為我們將再次出現零售發貨不足的情況，以便我們在 2025 年開始時處於一個非常好的位置。

Okay, got it. That's super helpful. Thank you. And then just to follow on on the margin line, what you're guiding for from a propulsion perspective, I think is decently are solidly below 2019 levels, yet sales are still well ahead and understand the impact that production has on that?

好的，明白了。這非常有幫助。謝謝。然後，為了遵循利潤線，從推進的角度來看，您所指導的目標是遠低於 2019 年的水平，但銷售仍然遙遙領先，並且了解生產對此的影響嗎？

But can you just maybe provide some more color around and margin guidance. I think it does imply some pretty steep decrementals in the back half just relative to what you've talked about and then just tie it with I know a lot's changed in the year. But in last nine months ago, you talked about kind of a 20% margin for the segment. So is that still realistic to think about in a more normal environment or have things kind of change too much?

但您能否提供更多顏色和邊距指導。我認為這確實意味著後半部分相對於你所談論的內容有一些相當陡峭的遞減，然後將其與我知道這一年發生了很多變化聯繫起來。但在過去 9 個月前，您談到了該細分市場 20% 的利潤率。那麼，在更正常的環境中考慮這一點是否仍然現實，或者事情發生了太大的變化？

Yeah, it's a very it's a fair question. A good one. I would tell you let me answer in reverse?

是的，這是一個非常公平的問題。一個很好的。我告訴你讓我反過來回答？

Yes, there's no reason that at normal production volume in normal market conditions that the propulsion business can't be back at or above 20% operating margins. It is simply a volume game for the full year that's driving that margin down.

是的，在正常市場條件下的正常產量下，推進業務沒有理由不能恢復到 20% 或以上的營業利潤率。這只是全年銷量遊戲導致利潤率下降。

The absorption impact on the lower production is pretty significant, call it, north of $30 million, currency, a little bit of a bad guy that said, most of it in the first half, but that's really hurting and just overall, not the OpEx you can take out quick enough to overcome the absorption and it got hit there.

對產量下降的吸收影響相當顯著，可以稱之為超過 3000 萬美元的貨幣，有點壞人的說法，大部分是在上半年，但這確實對整體造成了傷害，而不是運營支出你可以足夠快地取出來克服吸收，它就被擊中了。

And then also remember, the depreciation is larger there are this year, because of all the capacity projects and capital we put in there. So they're getting the impact of a hit without the company's sales, which we will get eventually. So you're kind of getting a mix of mismatch there.

然後還要記住，由於我們在那裡投入的所有產能項目和資本，今年的折舊更大。因此，他們在沒有公司銷售額的情況下受到了打擊的影響，我們最終會得到這一點。所以你會遇到一些不匹配的情況。

So we agree, it's certainly worse than we anticipated. But if you normalize take out absorption and kind of the one-timers, you are still on the mid to upper 10s at a normalized volume, you get a little bit more volume going back to a retail market that looks just a little bit better and you're getting back close to that 20%.

所以我們同意，這肯定比我們預期的更糟。但如果你將外帶吸收和一次性交易標準化，你仍然處於標準化交易量的 10 左右，你會得到更多的交易量，回到看起來好一點的零售市場，你會回到接近20% 的水平。

Super helpful. Thank you.

超有幫助。謝謝。

Xian Siew, BNP Paribas Exane Management.

Xian Siew，法國巴黎銀行 Exane 管理公司。

Hi, guys. Thanks for the question. I was just curious about your retail inventory target reduction for 7%. Like do you think that's enough relative to retail down 10% that I don't think it implies much of a mix on and reduction?

嗨，大家好。謝謝你的提問。我只是好奇你們的零售庫存目標減少了 7%。你認為相對於零售業下降 10% 來說這是否足夠，我認為這並不意味著太多的混合和減少？

Yes, Xian, thanks for the question. I think I mean, obviously, we have a number of considerations when we're trying to kind of target retail. We think about weeks on hand, we also think about units in the field and we think about units per dealer, which we've talked about on a lot.

是的，西安，謝謝你的提問。我想我的意思是，顯然，當我們嘗試瞄準零售業時，我們有很多考慮因素。我們考慮現有的幾週，我們也考慮現場的單位，我們考慮每個經銷商的單位，我們已經討論了很多。

There is an issue that we go down to low. We just can't carry references representative segment of our product line across the bulk of our dealers. So we're trying to balance a number of factors here. I think if we consider one factor, you might get one slight slightly different answer to another factor, but the fact is that we are going to significantly undershipped retail this year and I believe still end up with a decent number of units that each dealer.

有一個問題我們要降到最低。我們只是無法在我們的大部分經銷商中提供我們產品線的代表性部分的參考。因此，我們試圖在這裡平衡許多因素。我認為，如果我們考慮一個因素，您可能會得到與另一個因素略有不同的答案，但事實是，今年我們的零售出貨量將嚴重不足，我相信每個經銷商最終仍會獲得相當數量的單位。

Really of the area where we are going to have are going to increase inventory slightly versus last year is in the premium end of our product lines, particularly Boston Whaler and Sea Ray. And we were still working our way out of a hole on those products through the last several years because we couldn't catch up after the supply chain crisis. So thinking about it in those different ways. I think we feel it is a good balanced position to be in and derisks 2025.

實際上，我們將比去年稍微增加庫存的領域是我們產品線的高端產品，特別是波士頓捕鯨船和西雷。過去幾年，我們仍在努力擺脫這些產品的困境，因為我們在供應鏈危機之後無法趕上。所以以不同的方式思考它。我認為我們認為現在處於一個很好的平衡位置，並且消除了 2025 年的風險。

Okay. Got it. Really helpful. And then maybe on propulsion to your point, the wholesale volume declines are down kind of in line with new boat sales. Do you think the segment is becoming more correlated to new boat sales? Or there kind of like the structural tailwinds still intact?

好的。知道了。真的很有幫助。然後也許在你的觀點的推動下，批發量的下降與新船的銷售量一致。您認為該細分市場與新船銷售的相關性是否越來越高？或者結構性順風仍然完好無損？

And then also kind of pricing has been a price mix has been a big benefit. Is that under pressure at all? Or are you able to hold that is just volume that's coming down?

然後，價格組合的定價也帶來了極大的好處。這是有壓力嗎？或者你能保持住成交量的下降嗎？

Yeah, Xian. I'd say it's just volume. In fact, repower sales continued to be pretty strong beyond the first half of the year. We still think that's about 15% of the overall units 15% to 20%, but it is really just the OEM volumes that are that are sluggish, but we're not seeing any issues on the price volume mix.

是啊，西安。我想說這只是音量。事實上，今年上半年之後，重新供電銷售仍然相當強勁。我們仍然認為這大約佔整體銷量的 15%，即 15% 到 20%，但實際上只是 OEM 銷量低迷，但我們沒有看到價格銷量組合方面的任何問題。

Obviously, 300 horsepower and above our share is extremely robust, and that's where we can take the most price because we're the only engine in town for anything kind of four, -- 500, 600. And certainly, we believe our all of our high horsepower products are best in class. So we're still able to get a premium there and don't see that changing.

顯然，我們擁有的 300 匹馬力及以上的引擎非常強勁，這是我們可以採取最高價格的地方，因為我們是鎮上唯一一款可用於 4 馬力、500 馬力、600 馬力的引擎。當然，我們相信我們所有的高馬力產品都是同類產品中最好的。因此，我們仍然能夠在那裡獲得溢價，而且這種情況不會改變。

Okay. Thanks.

好的。謝謝。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

Hey, good morning. Thanks for taking my questions as well. You mentioned floorplan interest costs for dealers. I'm just wondering if there are metrics you can point to that would help us frame that additional expense, whether it's just the rate they face or percentage of their gross profit today versus prior periods?

嘿，早安。也感謝您回答我的問題。您提到了經銷商的平面圖利息成本。我只是想知道您是否可以指出一些指標來幫助我們確定額外費用，無論是他們今天面臨的利率還是其毛利與之前時期相比的百分比？

Greg, that's at the top. I mean, obviously, they're the you can track the rate they're paying, right. So are -- with our benefit of having BAC, our dealers are paying ahead of us so far, plus the it was the bank rate, so for plus a percentage. So obviously, that's up seven points since since 2021. And then you can take the average kind of average floor plan there times that rate.

格雷格，那是在頂部。我的意思是，顯然，你可以追蹤他們支付的費率，對吧。也是如此——憑藉擁有 BAC 的優勢，我們的經銷商到目前為止比我們提前付款，再加上銀行利率，所以要加上一定的百分比。顯然，自 2021 年以來這一數字上升了 7 個百分點。然後你可以將平均平面圖乘以該比率。

But all in all, I think the dealer network remains extremely healthy. We get reports every couple of weeks on, I think on amount of boats in the field that are aged and any challenges that our dealers are having played paying for planned or covering their sales.

但總而言之，我認為經銷商網路仍然非常健康。我們每隔幾週就會收到一份報告，我認為是關於該領域老化船隻的數量以及我們的經銷商在支付計劃或覆蓋其銷售方面遇到的任何挑戰。

So we're not seeing any concerning trends, in fact. Throughout the summer aged inventory, Brunswick has been low across the way, but aged inventory around all of the ACS portfolio has has gone down and we're seeing really good liquidations on anything more than a year old. So you can do the math by just taking the sulfur plus the change in the change in rates, but all in all, still a pretty healthy environment.

事實上，我們沒有看到任何令人擔憂的趨勢。在整個夏季，Brunswick 的陳舊庫存一直處於較低水平，但 ACS 整個投資組合的陳舊庫存都在下降，我們看到一年以上的庫存都得到了很好的清算。因此，您可以透過僅使用硫加上速率變化來進行數學計算，但總而言之，仍然是一個非常健康的環境。

And then shifting gears, just a lot of this discussion has been the macro, which of course, you don't control but seems like there is a self-help opportunity at Navico. And I'm just wondering where you think or what the current expectation is for and I guess, margin the margin profile of that business if we get back to, let's say, 150,000 boats.

然後換檔，很多討論都是宏觀的，當然，你無法控制，但 Navico 似乎有一個自助的機會。我只是想知道您的想法或當前的期望是什麼，我想，如果我們回到 150,000 艘船，就可以保證該業務的利潤率。

Yeah, I think you're right. And obviously, we take that very seriously from Craig and we're working on it very diligently, including in terms of the footprint. We've closed about 40% of the facilities there. We've significantly reduced headcount, and we're working very diligently on cost of sales. So but the cost of sales work that we're doing is not flowing quite yet because we still have inventory prices some of those reductions, it will start to flow through along with a stream of new products, some of which we highlighted today.

是的，我認為你是對的。顯然，我們非常重視克雷格的這一點，並且正在非常努力地解決這個問題，包括在足跡方面。我們已經關閉了那裡大約 40% 的設施。我們大幅減少了員工人數，並且非常努力地控制銷售成本。因此，我們正在做的銷售工作成本尚未流動，因為我們仍然有庫存價格，其中一些減少，它將開始與一系列新產品一起流動，其中一些我們今天強調了。

So we're doing all the right things on Navico group, which wish it had flowed through a bit earlier, but obviously, the marine OEM environment and the RV OEM environment is a tough one. However, aftermarket is doing better and making up for that, which is why you see that kind of flat revenue by quarter. And we have some great new products, I mean, through both on the OEM side on the aftermarket side.

因此，我們正在 Navico 集團做所有正確的事情，希望它早點通過，但顯然，船舶 OEM 環境和 RV OEM 環境是一個艱難的環境。然而，售後市場表現更好並彌補了這一點，這就是為什麼你會看到季度收入持平的原因。我的意思是，我們在 OEM 方面和售後市場方面都有一些很棒的新產品。

Great. Thanks, Dave and Ryan.

偉大的。謝謝戴夫和瑞安。

Thank you. Ladies and gentlemen, this concludes our question and answer session. And at this time, I would like to turn the call back to Dave for some concluding remarks. Dave?

謝謝。女士們先生們，我們的問答環節到此結束。此時，我想將電話轉回給戴夫，讓他做一些總結性發言。戴夫？

Thank you very much, and thank you all for joining us and for your questions. Although the peak season sales didn't meet our initial expectations, we came pretty close to our Q2 guidance, but it is clear that we are looking at a different back half of the year than we originally anticipated.

非常感謝大家，感謝大家加入我們並提出問題。儘管旺季銷售沒有達到我們最初的預期，但我們非常接近第二季的指導，但很明顯，我們對今年下半年的預期與我們最初的預期有所不同。

I am very, very pleased, though, with the way our market share is holding up, but also particularly with the way that our recurring revenue businesses are holding up. P&A is performing it very well, Mercury repower Freedom Boat Club.

不過，我對我們市場份額的保持非常非常滿意，尤其是我們經常性收入業務的維持。P&A 表現得非常好，Mercury 重新為 Freedom Boat Club 提供動力。

We didn't even get a question come up once this time, but it continues to Pro memberships has grown about 3% in terms of memberships this year. So a lot of great performance there, which is driving really robust earnings and very strong cash flow.

這次我們甚至沒有收到任何問題，但今年 Pro 會員數量仍然增加了約 3%。因此，那裡有很多出色的業績，這推動了真正強勁的盈利和非常強勁的現金流。

So we're very excited about that part of the business and we are clearly positioning ourselves very, very well for 2025. I do want to end by just saying that we continue to focus on being an employer of choice. We have a great team at Brunswick that's driving everything that you hear about.

因此，我們對這部分業務感到非常興奮，我們為 2025 年做好了非常非常好的定位。最後我想說的是，我們將繼續專注於成為首選雇主。我們在 Brunswick 有一支優秀的團隊，他們正在推動您所聽到的一切。

And we recently were ranked number one in the engineering and manufacturing category in Times Best midsized companies, which I think is a testament to how we run the business from a financial perspective from a personnel perspective from a corporate responsibility perspective. So I'm delighted with that. I wanted to thank all of our employees. Thank you all very much.

最近，我們在時代最佳中型公司的工程和製造類別中排名第一，我認為這證明了我們如何從財務角度、人員角度和企業責任角度來經營業務。所以我對此感到很高興。我想感謝我們所有的員工。非常感謝大家。

Thank You. The conference of Brunswick Corporation has now concluded. Thank you for your participation. You may now disconnect your lines.

謝謝。Brunswick 公司的會議現已結束。感謝您的參與。現在您可以斷開線路。