Brunswick to Cut Production

Published online: Jul 17, 2006 News Soundings Trade Only News
Viewed 124 time(s)

Brunswick Corp., citing a significant decline in retail demand, is curbing production and lowering its expectations for the remainder of the year.


The Lake Forest, Ill.-based boatbuilder projects its second-quarter sales will rise 1 percent, to $1.55 billion. The company says it expects second-quarter earnings will be  93 to 94 cents a share. This falls in line with the company's previously announced estimate of 90 to 97 cents.


"Our second-quarter results are in line with our expectations," said Brunswick chairman and CEO Dustan E. McCoy, in a statement. "Throughout the key second-quarter selling season for 2006 model year marine products, however, we have experienced significant declines in retail demand, which has resulted in an increase in pipeline inventories."


As a result, the company says it will further reduce production levels, leading to a lower earnings estimate for the second half of the year.


"Although this will result in reduced margins, we believe that managing pipeline inventories is critical in a cyclical, as well as a seasonal, industry," McCoy said.


The company, which also makes fitness equipment and bowling and billiards products, projects earnings from continuing operations of $2.40 to $2.55 a share for the full year, below its prior forecast for an equivalent profit of $3 to $3.15 a share.


Brunswick shares were $29.67 during midday trading -- down $2.16.

You May Also Be Interested In...

April 16, 2015

Breaking News

The National Marine Manufacturers Association canceled the Progressive Chicago In-Water Boat Show, which was set to take place June 11-14, and will stop producing the annual show.
April 16, 2015

West Marine announces new "Deck Out Dad" social media contest

West Marine has launched a new social media campaign called Deck Out Dad!
April 03, 2015

66 Days At Sea

We are happy to report that after being adrift at sea and lost for 66 days, Louis Jordan has been rescued 200 miles off the coast of South Carolina.
April 01, 2015

JC Manufacturing becomes JC TriToon Marine

Formerly known as JC Manufacturing, the Indiana-based pontoon manufacturer has officially changed its name to JC TriToon Marine.
Follow us on Facebook!  Follow us on Instagram!  Follow us on Twitter!  Follow us on YouTube!