Skip to main content

Brunswick speeds up downsizing, reduction efforts

Brunswick Corp. today announced it will accelerate its previously stated efforts to resize the company and remove $300 million in fixed costs by the end of 2009.

The company says it is taking the action in light of “extraordinary developments” within the global financial markets that are affecting the recreational marine industry.

“We are living and working in the most turbulent economic times in recent history,” said Dustan E. McCoy, Brunswick chairman and CEO, in a statement. “From the start of the year, we’ve experienced a 3,500-point drop in the Dow, mortgage and housing crises, record prices for oil, and now shrinking credit availability for companies and individuals. The poor economy and the accompanying weak consumer sentiment have pressured marine markets, eroding the demand for boats and engines these past few months at a swifter pace than originally anticipated.”

Brunswick had previously announced plans to close four boatbuilding facilities in early 2009. That process now will be accelerated. By the end of this year, plants in Arlington, Wash., and Roseburg, Ore., will be permanently closed, and the Navassa, N.C., plant will be mothballed. The Pipestone, Minn., permanent closure is expected to be completed during the first quarter of 2009.

The company said these actions will result in the eventual elimination of approximately 1,450 hourly and salaried positions at these facilities.

Brunswick scheduled a conference call today at 3:30 p.m. CDT to discuss these actions. McCoy is expected to be joined by Peter B. Hamilton, senior vice president and CFO, and Kathryn J. Chieger, vice president of corporate and investor relations.

Friday’s Trade Only Today newsletter will cover the conference call.

Click here for the complete statement from Brunswick.

Related

CRUISERS

Industry Mourns Cruisers Yachts Owner

K.C. Stock, who was 84, was known for his “commitment to the employees at Cruisers Yachts.”

GRANDBANKS

Grand Banks Purchases Florida Property

The parcel, which is opposite the company’s Stuart yard, has berths for up to nine boats and will increase service capabilities.

LIMESTONE-Q3

Limestone Boat Co. Posts Q3 Results

Unit production was down compared with the second quarter, and revenues decreased 33%.

SIREN-YAMAHA

Yamaha Dealers Now Carry Siren Systems

Siren Marine’s “Connected Boat” technology can be purchased and installed at more than 2,100 Yamaha outboard dealers.

Northpoint

Northpoint Expands Marine Presence

Northpoint Commercial Finance has partnered with Elite Recreational Finance to offer retail financing.

BRP

BRP Reports 71% Increase in Q3 Revenues

The Sea-Doo manufacturer had total revenue of $2.7 billion, but North American marine retail sales were down 47%.

Airmar

Airmar Announces Training Dates

Certified Installer and SmartBoat system classes are being held this month in New Jersey and next year in New Hampshire.

Norm

The Survey Says …

Surveying customers to find out what they think about your business has never been more important.

1_MDI

Marine Development Inc. Changes Hands

Mick Webber, the former president/CEO and owner of HydroHoist, has purchased the company from its founders.