|Brunswick Corporation : Mercury Marine's broad new outboard engine launch speaks to Brunswick's commitment to investing in innovation and product leadership|
METTAWA, Ill. (May 22, 2018) - Following the unprecedented release of nearly 20 next-generation V-8 and V-6 FourStroke outboard engine models recently by Mercury Marine, its largest division, Brunswick Corporation (NYSE: BC) today reiterated that its enterprise-wide efforts to extend and fortify its product and technological leadership in the global marine industry continues to produce impressive results.
"It has been a momentous year for new product introductions at Mercury Marine," Brunswick Chairman and Chief Executive Officer Mark Schwabero said. "At the Miami Boat Show in February, Mercury introduced a number of V-6 outboard engines. Three months later, as promised, its second stage has been launched. It is the result of hard work and a disciplined and focused approach over the past several years to ensure that we maintain and advance our product leadership through engine technology and a robust pipeline of world-class, technology-driven products."
In addition to the four V-6 engines launched in Miami, on May 18 Mercury Marine launched 12 new V-8 outboards and yet another new V-6 model. These include new models in the Verado, Four-Stroke, Pro XS, Racing and Sea Pro lines of engines. These new products will begin to ship immediately as OEMs transition to the new model year, and will fill the retail pipeline in the third and fourth quarter of the year.
The introductions represent the largest product development project in Mercury's 79-year history, and have been accompanied by major investments over the past several years to its manufacturing footprint, explained Mercury Marine President John Pfeifer. Following a strategy to grow through organic investment and focused acquisitions, Brunswick has invested more than $1.2 billion in Mercury's global operations since 2009 aimed at enhancing Mercury Marine's product range, quality, cost efficiency, capabilities and capacity, Schwabero noted
"We are a global leader in marine propulsion," Pfeifer added, "strengthened by continued investments in research and development, products, capacity expansions and upgrades to ensure that we can deliver on our vision and promises."
Pfeifer pointed to recent investments such as the construction underway on Mercury's new NVH (Noise, Vibration, Harshness) research facility, one of several major expansion projects in the last 18 months. During that time, Mercury officially opened its new EDP paint plant; commissioned a 4,500-ton high-pressure die-cast machine, the largest in North America, and added state-of-the-art assembly lines for production of the new V-6 and V-8 engines.
"Such investment backs our commitment to both the marine industry and our shareholders," Schwabero explained. "Mercury Marine and the global marine industry it serves are vital to Brunswick. Its industry-leading pace of innovation has helped Mercury average the launch of a new major product about every six weeks for the past several years. Further, by the end of 2018, more than 80 percent of our outboard revenue will come from products that have been introduced since 2012.
"With the continuing global shift in outboard power from two-stroke to four-stroke technology, Mercury continues to lead the market with the broadest and most complete product portfolio," Schwabero continued. "Beyond its proven track record in propulsion, Mercury continues to grow its ever-increasing parts & accessories (P&A) business as well as develop and integrate innovative technologies to enhance the boating experience and broaden its global base of boat makers who choose to power their craft with Mercury propulsion."
"The scope and effective results of our product development capabilities, along with our strategic focus on both our propulsion and P&A businesses, which leverage and expand the largest marine installed base, will continue to drive our growth and uniquely position us to continue to lead the market and deliver on our commitments. As a result of these efforts, we are well positioned to outperform healthy demand in the global marine propulsion market," Pfeifer concluded.