In the third quarter, all regions delivered substantial sales growth versus third quarter 2021 with broad-based gains across the business segments. Overall, international sales and U.S. sales were each up 13% versus the prior year quarter. Our Parts and Accessories businesses delivered strong sales growth led by benefits from acquisitions completed in 2021, solid engine P&A sales and strong OEM sales from Navico Group. On an organic basis, P&A segment sales in the third quarter grew 1% compared with 2021, excluding currency. We closed our Florida boat manufacturing facilities for the last week of the third quarter to prepare for and ride out the hurricane.
I think that things will be a lot different next year. It’s also one of the places, Fred, that has not gotten their lion’s share of engine products that they would like. And with the new capacity, again, coming online, we would anticipate our ability to satisfy more OEMs and repower in Europe in 2023. So we did a little promotional activity in the Scandinavian marketplace. But really that’s pretty much all we’ve done, and sales continue to be pretty good, in fact, remarkably resilient. So we’re really not seeing – although it’s different country by country, and I’m talking about Europe as opposed to markets like ANZP, ANZP is strong as well.
Regardless, Smiling Bills are versatile and made with ultra-strong hooks, usually with a shorter shank than other bucktails. This beefed-up construction stops big bass from bending them out during fights in heavy current. To increase vibration and wiggle, many surfcasters tip their bucktails with red pork strips or large curly-tail grubs. At seven inches long, the Danny is a big lure that matches big striper food like menhaden and mackerel. Each Gibbs is turned from wood sourced in the Pacific Northwest to provide maximum buoyancy and, more importantly, durability.
This year, it’s probably going to be down mid-teens based on where we are in the year right now, retailers in the year right now. Finally, Freedom Boat Club continues to expand locations and added locations in new countries in Europe as well as new U.S. locations during the quarter. Before I close, I’d like to remind you about our November 16 event for the investment community, which we are hosting at our famous Lake X test facility outside Orlando, in Florida.
Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation sections of the unaudited consolidated financial statements accompanying today’s results. Surrounded by wildlife refuge, you not only can launch your boat from Highland Park, but probably get into places where you couldn’t reach before Ian brought all that additional water. Capt. Mike Vickers (Hammock Beach Bait & Tackle) keeps hearing about plenty of pompano in Duval and St. Johns Counties, and expects the faucet to spring open soon in Flagler and Volusia. Capt. Jeff says another solid bet right now is black drum around the bridges in Ormond Beach and Daytona Beach — “they’ve been pretty thick,” he says.
Fishing report, Oct. 28
In a flat marine market which you described, how many more engine units would you expect to sell due to the share gain? You noted the repower market opportunity and some international opportunities as well. The lion’s share of the rest is just a mix issue. It’s obviously with the Navico business, SemahTronix and RELiON coming on in the fourth quarter of last year. Those are businesses with very strong gross margins, but cost structures that we need to get after and we are getting after to get those operating margins up to where the legacy P&A business is.
Note that changes in foreign currency exchange rates were more unfavorable than anticipated, resulting in a high single-digit million dollar earnings headwind in the quarter, with the P&A segment most impacted. Operating earnings were down very slightly against Q3 of 2021, given all the factors previously mentioned, with the sales benefits being offset by the negative currency impacts and continued material and freight inflation. We thought it would be also helpful to dive a bit further into pipeline levels, focusing on the current availability of fiberglass product versus aluminum product in the U.S. At the end of the third quarter, there were approximately 5,000 units of aluminum product in the hands of U.S. dealers or 19 weeks on hand, which although trending healthier, remains almost 40% lower from the same level in 2019. The primary retail season for these products is materially complete, with our dealers for these boats mainly in Northern markets, focused now on winterizing product and getting their inventory position ready for the 2023 selling season. Our Propulsion business delivered yet another quarter of outstanding top line earnings and operating margin performance.
There’s a reason they’ve grown margins annually every year for the last decade, and we plan to continue that trend over the next couple of years. We’re continuing to – we’re really pricing for our technology and product features, Craig. So we continue to price at a premium across most of our product line to manufacturers, and we have not so far seen any evidence of any abnormal behavior in market pricing.
The bottomfish limit is down from five to four. Halibut have been found in waters as shallow as 150 feet of late, mostly north of Brookings. Most of the halibut have been in 180 feet of water lately, however. The halibut limit is up to two fish per day off Southern Oregon.
Yes, Fred, actually, it’s surprisingly strong. Definitely, strength in the Mediterranean markets prepared with some comparative softness in kind of Scandinavia and some of the Northern markets. But in aggregate, remarkably resilient, I would say, both on the engine side and the boat side.
Constance Brownlow is a 38-year-old animal expert and entertainer. She has always been fascinated by animals, and she has spent her entire life learning about them. She knows more than most people about the behavior and habits of various creatures, and she loves educating others about them.
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