Analyst: Brunswick furloughs are ‘prudent’

Author:
Updated:
Original:

Brunswick's decision to extend the furlough at two Sea Ray plants in Tennessee is "prudent" and "consistent with our prior comments that new fiberglass retail boat sales, in general (mid/larger boats, in particular), remain weak," according to Wells Fargo Securities senior analyst Timothy Conder.

Typically, production furloughs are taken near Thanksgiving and again at the end of the year. But Brunswick told employees at the Knoxville plant that its furlough begins Oct. 4. The plant in Vonore will begin its furlough in November.

Both plants are scheduled to resume production Jan. 4, 2011.

"We will continue to monitor retail boat sales as we enter the U.S. offseason, but feel ... absent dramatic ongoing year/year declines, it will be [March 2011] before we again get a good read on retail," Conder wrote. "The general exhaustion of non-current new and quality used industry product should begin shifting the 84 percent used/16 percent new mix back toward historical levels of 75 percent/25 percent in 2011, benefiting manufacturers.

"We see limited catalysts through year-end to break [Brunswick] out of a $14-$18 [per share] range," he added.

Brunswick stock opened this moring at $14.13.

Related

Lowrance Unveils New Sonar and Fishfinder Series

The ActiveTarget Live Sonar views show high-resolution images of fish movements in real time and in greater detail.

Oyster Looks to Expand its Workforce

The U.K. builder continues its recruiting drive for both experienced craftsmen and apprentices.

Finance Provider Goes Digital

Elite Recreational Finance has debuted a new tool to help dealers secure financing and close transactions remotely.

Quick Hits: December 4, 2020

SF Marina rebuilds New England marina; and BoatUS launches recast and recycle contest.

Fusion Unveils Wake Tower Speakers to Premium Signature Series 3 Collection

The new wake speakers are the first to feature five-color LED lighting.

Boot Düsseldorf 2021 Postponed Until Late April

With Covid-19 numbers remaining high across the EU, organizers say the event cannot be held in January.

Galati Goes Virtual

The yacht dealer has unveiled a virtual shopping tool that will help match customers with vessels as most boat shows are cancelled or moved online in the pandemic.

Quick Hits: December 3, 2020

Walter Meloon inducted into Wakeboarding Hall of Fame, and AMI announces virtual conference.