Brunswick earnings estimate lowered

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Analysts at RBC Capital Markets are lowering their sales and earnings estimates for Brunswick Corp. to reflect significant downward pressure on wholesale shipments.

“While retail trends appear in line with expectations, many dealers are simply unwilling/unable to replenish inventory in light of extremely depressed demand, excessive aged inventory and very tight floorplan lending standards,” said Edward Aaron, senior analyst with RBC, in a recent report.

RBC now expects Brunswick to report sales of $746 million for the first quarter of 2009. This is below RBC’s previous guidance of $906.3 million and below consensus of $790 million. The forecast assumes a 45 percent decline in total company sales, including a 54 percent decline for the marine segments.

RBC forecasts a loss of $1.11 per share for Brunswick’s first quarter, compared to previous guidance of a loss of 95 cents per share. For the year, RBC forecasts a loss of $3.26 per share, compared to earlier estimates of a $3.10 per share loss.

“The silver lining of depressed shipments is that the bottom could come sooner,” Aaron said in his report. “We will view [Brunswick] shares as timely when we get the sense that dealers are resuming normal stocking patterns. The timing of this remains very unclear, but anemic dealer orders in 2009 increase the probability of this happening by 2010.”

Brunswick will release its first quarter earnings report Thursday before the market opens.

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Comments

2 comments on “Brunswick earnings estimate lowered

  1. great12

    Brunswick, specifically Boston Whaler sales are down because they have no sales personal to help the dealer move product. The senior leadership at Whaler has had a recent shakeup, but the same person is still in  the top spot and he needs  to return to moving outboards, not high end boats. When your personal views decide whether you take a 2 million order from a great new progressive dealership or to continue to deal with a dealership who has  not caught up with the times, doesn’t  not even have a desk to write up a  a potential customer, or nought more then 10 boats in the last years when times were good, something is very wrong. The corporate culture is so bad no one wants to even talk about it, for fear of being removed.  the day end and day out poor managment decisions at this division of Brunswick is appalling. I can only imagine what the other divisions are doing and it is a clear example of the contribution to the issue. Circuit city had a plan , get rid of the experianced personal in exchange for cheaper workers and I believe the last of their 400 stores closed last month. Good Call !

  2. Gene

    How true. I have Never, Ever, experienced such arrogant, self centered, could care less about there Dealers. than the “B” Corp. They are far worse than Chrysler. GM Is a far better Corp. than Brunswick.
    Good bye Brunswick.
    Keep your Air heads in charge!

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