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.