Brunswick to Cut Production

Published online: Jul 17, 2006 News Soundings Trade Only News
Viewed 114 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...

March 19, 2015

Carefree Boat Club adds location in Georgia

Carefree Boat Club has just opened a brand new location, adding to its ever-growing lineup.
March 17, 2015

World's fastest pontoon boat gets even faster

When you think of fast boats, a pontoon is probably pretty low on your list, just ahead of houseboats and tugboats. Brad Rowland begs to differ.
March 05, 2015

West Marine begins "Do It Yourselfie!" promotion

Show off your selfie fixing up your boat and West Marine could lend you a hand.
March 04, 2015

Pontoon Brands United

Premier Marine announced today the company will transfer the production of its Weeres and Palm Beach brands to its headquarters in Wyoming, Minn.
March 02, 2015

West Marine's New Product Review Day set for March 20

West Marine has announced the date for this year's iteration of their New Product Review Day.
February 19, 2015

Honda Marine and Coach Pontoons Are Now Partners

The PDB team has exciting news! While we were at the 2015 Miami International Boat Show, Honda Marine announced their new exclusive OEM agreement with Coach Pontoons!
Follow us on Facebook!  Follow us on Instagram!  Follow us on Twitter!  Follow us on YouTube!