Brunswick earnings estimates reduced

Author:
Updated:
Original:

Analysts from Wachovia Capital Markets are lowering their earnings estimates for Brunswick Corp. because of the continuing economic situation, which likely will necessitate further boat and engine production cuts.

The investment firm is lowering its estimates to a loss of $1.59 per share for fiscal 2009, compared to a previous loss estimate of 30 cents per share. This includes an estimated 26 cents per share in restructuring charges.

Despite the lower estimate, Brunswick’s liquidity remains manageable, reported Tim Conder, managing director of leisure equity research for Wachovia. He said free cash flow should approximate 50 cents per share as the additional production cuts generate incremental cash flow from working capital.

He went on to say in the report that technical violations of covenants under the company’s unsecured revolving credit facility in the 2008 fourth quarter should not be a major issue, as the company appears close to consummating a new secured revolving credit agreement.

“Additionally, we believe the company is close to positively amending its covenants — more breathing room — for its wholesale financing joint venture with GE Capital,” Conder wrote in his report. “Other incremental avenues of liquidity include a sale/leaseback of the company's recreational bowling centers and, under a very dire scenario, a sale of its remaining non-marine assets.”

Finally, Conder said industry sources indicate that Brunswick’s largest customer, MarineMax, is also close to consummating a revised revolving credit facility.

Related

ABYC Foundation Seeks Nominations for Educator Award

The award recognizes “an outstanding instructor who is shaping future marine service technicians.”

P.R. Firm Rushton Gregory Signs ePropulsion

The Chinese manufacturer of electric propulsion products introduced a standardized lineup earlier this year.

Dometic Updates Pro-Trim System

The new design allows boaters to trim the outboard and adjust the jack plate without removing their hands from the wheel.

Brunswick Partners with Carnegie Robotics

Through the alliance, Brunswick aims to enhance its autonomous technology offerings.

Nicole Vasilaros to Depart NMMA

The group credits the senior vice president of government and legal affairs for “countless contributions to the protection and expansion of the recreational boating industry.”

Site Unseen

A website is often the first interaction a customer will have with a dealership, but it must provide more than an online brochure or they will click elsewhere.

C.G. Amends Documentation Rules

Federally documenting a boat now must be done every five years, rather than annually.

The 2021 Top 10 Most Innovative Marine Companies Awards

The marine industry consistently honors products and people. The industry, however, has not recognized forward-thinking companies that are moving the industry in new directions. Soundings Trade Only’s mission is to reflect, inform and inspire.