Skip to main content

Brunswick earnings estimate lowered

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.

Related

1_TRAVELIFT.COOP

Marine Travelift Launches Co-op Program

The company received its first student, a University of Wisconsin engineering major, in the seven-month paid co-op.

1_JULY4

Trade Only Today Returns Tuesday

The e-newsletter will not publish July 4 in observance of Independence Day. We wish everyone a safe holiday weekend.

1_ORR.FUNDS

ORR Announces Federally Funded Projects

The U.S. Economic Development Administration prioritized outdoor recreation for the first time

Norm#4

Ten Ways To Sell in a Tough Economy

These keys to successful selling can help you create customers who keep coming back, even when sales dip

1_ASA.BOARD

ASA Names New Board Members

The American Sportfishing Association filled two at-large seats and two regional seats on its board of directors.

1_EXEC.SEARCH

Dammrich, Hopkinson Partner With Marine Resources Recruitment

The industry veterans will help clients fill executive-suite, marine industry job openings around the world.

1_PULSE.PING.0630

DEALERS: How Was Business in the First Half of 2022?

With the second quarter coming to a close, was there parity between the budget and financial performance in the first six months? Take the Pulse Report survey here.

1_PMMPODCAST

Passagemaker Relaunches Podcast

Trawler Talk aims to connect with those who are interested in the cruising lifestyle, with episodes dropping every other week