Brunswick looks to 2010 in annual report


Brunswick's primary focus was on liquidity last year, and in 2010, the company intends to focus on generating positive cash flow and performing better than the market in each of its business segments, according to its annual report filed with the Securities and Exchange Commission.

"In the longer term, Brunswick's strategy is to introduce the highest quality products with the most innovative technology and styling at a rate faster than its competitors; to distribute products through a model that benefits its partners - dealers and distributors - and provides world-class service to its customers; to develop and maintain low-cost manufacturing processes and to continually improve productivity and efficiency; to manufacture and distribute products globally with local and regional styling; and to attract and retain skilled and knowledgeable people," the company said.

The report also said:

  • The marine engine segment had net sales of $1.43 billion in 2009. The company believes its marine engine segment has the largest dollar sales volume of recreational marine engines in the world.
  • The boat group had net sales of $615.7 million during 2009, which Brunswick says is the largest dollar sales and unit volume of pleasure boats in the world.
  • The boat group's products are sold through a global network of approximately 1,750 dealers and distributors, each of which carries one or more of Brunswick's boat brands. Sales to the largest dealer, MarineMax, represented approximately 16 percent of boat group sales in 2009.
  • Brunswick Financial Services Corp. has a 49 percent ownership interest in a joint venture, Brunswick Acceptance Company. CDF Ventures, a subsidiary of GE Capital Corp., owns the remaining 51 percent of the joint venture. Under the terms of the joint venture agreement, BAC provides secured wholesale floorplan financing to the company's engine and boat dealers. The term of the BAC joint venture extends through June 30, 2014.
  • Boat segment sales comprised approximately 23 percent of Brunswick's non-U.S. sales in 2009. The boat group's products are manufactured or assembled in the United States, Canada, China, Mexico, Poland, Portugal and the United Kingdom, and are sold worldwide through dealers. The Boat Group has sales offices in France, Mexico and the Netherlands.
  • Research and development expenses as a percentage of net sales was 3.2 percent, 2.6 percent and 2.4 percent in 2009, 2008 and 2007, respectively.

Click here for the full report.