brunswick in trouble?

[jaxnjil]

Brunswick Has Rating Cut to BBB- by Standard & Poor's (Update1)

By Brad Skillman

June 30 (Bloomberg) -- Brunswick Corp., the maker of Sea Ray yachts and Boston Whaler fishing boats, had its corporate-credit rating cut by Standard & Poor's Ratings Services to BBB-, one level above non-investment grade.

Concerns about Brunswick's financial results and conditions in the maritime industry led to the reduction from BBB, S&P said today in a statement. About $730 million in debt was affected. The agency said an additional ratings cut was possible.

Brunswick said June 26 that it plans to close four more North American facilities than originally forecast and may fire as much as 10 percent of its workforce to lower costs. U.S. powerboat sales sank to the lowest in more than 40 years in 2007, the company said.

Brunswick, based in Lake Forest, Illinois, fell 65 cents, or 5.8 percent, to $10.60 at 4:03 p.m. in New York Stock Exchange composite trading, the lowest since October 1991. The shares have dropped 38 percent this year.

Brunswick's 7.4 percent bonds maturing in September 2023 last traded at 94 cents on the dollar on June 24, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority. The yield rose to 8.07 percent from 7.95 percent on June 11.

To contact the reporter on this story: Brad Skillman in New York at bskillman1@bloomberg.net.

 

[bjcsc]

Re: brunswick in trouble?

I don't think they're in trouble. They've been working on some different stuff for awhile now. I just posted about them in another thread. The Sea Boss and Sea Pro lines are soon to be history...

 

[BoatBuoy]

Re: brunswick in trouble?

Yep, Brunswick laid off 300 workers from their Sea Ray manufacturing facility here last week. From the local news, "The company says it also plans to cut as many as 2,700 workers by the year's end and close a dozen of its 29 boat-plants."

 

[tmh]

Re: brunswick in trouble?

Obviously, Bunswick's plan to grab up LOTS of boat builders then run them all more efficiently did NOT factor in such low total boat ssales as we've seen and will continue to see! Basically, they bought these lines when times were much better, and now are stuck with them in tough times - either bad timing or bad business.

The debt rating will make raising new capital more costly for them and i assume they may need some $$$ soon. Closing plants and getting rid of some lines will help some, but often are still costly short-term. Remember, they PAID good money for those brands they're ending!

This all would make me nervous buying a new boat from their premium brands - unhappy employees from layoffs, etc. make lower quality products! Have they shifted the Searay building to other plants? Are they skilled at the techniques that made Searay a premium brand or are the bayliner workers trying to make a "better Bayliner"? NOT knocking Bayliner - but if you buy a Searay you do NOT want a bayliner!

 

[roscoe]

Re: brunswick in trouble?

All part of the plan. Buy em up, consolidate, shut others down, reduce overhead, shrink dealer network.
Doing this now, lets them do it without looking like bad guys.


Still waiting for them to build a boat that I would want or be willing to buy.

 

[jaxnjil]

Re: brunswick in trouble?

no ones said any thing to this effect and its just a though i had when following this brunswick story.
wouldnt it be something if mercuirser went the way of omc.
dont see this happening but ..............

 

[mscher]

Re: brunswick in trouble?

IMO, this is just another sad example of the beginning of the end, for the RV and boating industry.

It isn't just about gas prices. Ice, hot dogs, camp ground fees, annual DNR passes, boat/RV taxes, etc. Going sky high and people are scared to take vacations, lest their job be gone when they get back.

Since day one, boating and camping was an affordable way to enjoy a get-away. Not any more.

Here it is, July and while driving my truck, I see many RVs and boats in yards, with for-sale signs and almost none on the road.

What a drag for an industry that America was all about. ;(

 

[External Combustion]

Re: brunswick in trouble?

I think all boat manufacturers are in trouble. The local paper stated Wednesday that Mercruiser was laying off several hundred blue collar and white collar workers here and that they were closing down some of their factories across the nation. However, they are working on a 1.6 liter engine drive set up to be released shortly.

People want fuel efficiency now.

It affects us all.

 

[roscoe]

Re: brunswick in trouble?

IMO, this is just another sad example of the beginning of the end, for the RV and boating industry.

It isn't just about gas prices. Ice, hot dogs, camp ground fees, annual DNR passes, boat/RV taxes, etc. Going sky high and people are scared to take vacations, lest their job be gone when they get back.

Since day one, boating and camping was an affordable way to enjoy a get-away. Not any more.

Here it is, July and while driving my truck, I see many RVs and boats in yards, with for-sale signs and almost none on the road.

What a drag for an industry that America was all about. ;(

Maybe a new beginning, where people will rediscover how much fun you can have with : a $1000 boat, $400 in camping equipment, $50 of gas, and $20 of mosquito repellant.

I can camp and fish for a week for $150, $170 if I have to buy minnows.

As a side note, there are a lot of bargains to be had on boats this summer.
Motors are half price, and trailers, which are usually in high demand, are being given away.

Here's my latest acquisition:

http://cgi.ebay.com/ebaymotors/ws/e...m=300235958737&ssPageName=STRK:MEWA:IT&ih=020

Now..... I need to find a boat for it.

 

[Tail_Gunner]

Re: brunswick in trouble?

Maybe a new beginning, where people will rediscover how much fun you can have with : a $1000 boat, $400 in camping equipment, $50 of gas, and $20 of mosquito repellant.

I can camp and fish for a week for $150, $170 if I have to buy minnows.

As a side note, there are a lot of bargains to be had on boats this summer.
Motors are half price, and trailers, which are usually in high demand, are being given away.

Here's my latest acquisition:

http://cgi.ebay.com/ebaymotors/ws/e...m=300235958737&ssPageName=STRK:MEWA:IT&ih=020

Now..... I need to find a boat for it.

For the luv of god...Brunswick is cutting staff across the entire boating Ind and your booming on a 200 dollar trailer.....GRRRRRRRRRRR ...good thing your not to close to me...WTF has America lost it's mind

 

[Tail_Gunner]

Re: brunswick in trouble?

For the luv of god...Brunswick is cutting staff across the entire boating Ind and your booming on a 200 dollar trailer.....GRRRRRRRRRRR ...good thing your not to close to me...WTF has America lost it's mind

Im not sorry in posting that comment...Your god my god or what ever....have you guys lost your minds.

http://www.chicagotribune.com/business/chicago-brunswick-boat-plant-closing-jun26,0,878865.story

The recreational outdoor and indoor products manufacturer now plans to close 12 of its 29 facilities by the end of 2009, not eight as previously announced. Some 1,000 jobs will be cut at various plants, and another 1,700 layoffs will be considered as additional plant closures are possible.

and your smiling over a 200 dollar trailer..

Promise me to never post about econ again..... Hostile yes.........that to..a post like this is very disturbing...very

 

[roscoe]

Re: brunswick in trouble?

I wasn't posting econ.
The post was in response to mscher, about boating and camping, and lifestyle changes, and the value it can bring to a persons life.


A fat bloated under capitalized company that builds products its customers no longer want or can afford, needs to change or close in a capitalist economy. It happens all the time.
It should be good in the long run for the company, its stockholders, and its remaining employees; if the company survives.

Sure it stinks what is happening to the workers, communities, families, etc.. Been there done that - 3 times.

Am I glad I can pick up deals in this soft market? You bet. That means I'll be able to make a few more bucks to put in my bank account, add to my retirement, or improve my lifestyle.

Its too bad that you are so easily disturbed.

 

[SnappingTurtle]

Re: brunswick in trouble?

No one cried when my industry sector crashed, and the let everyone over 35 years old go.

47,000 jobs lost in the “creative sector” in one German State alone where we live, in 2001.

The biggest job losses recorded in this sector world wide since the WWII.

What did you care about my industry sectors looses? NADA THING!

What do I care about the boat industry? NADA THING! I used to be, but not anymore. What goes around, comes around. Good bye & good riddens.

I don't know one friend or contact, over 40 years old, in the industry, in the U.S. that has survived the recent cuts of the last 8 years.

It is like a long line of dominoes, one after the other falling, and taking the next sector with it.

All the while continuing to move one plant after the other to Asia, to increase corporate profits, or decrease corporate losses.

It is a devils circle, increase corporate profits by closing plants in the west, while at the same time killing the disposable income of your old customers in the process.

It's a “dog eat dog” environment now, every man, women, and child for themselves. The tough will survive, or? Survival of the fittest?

All this said, greedy Capitalism is still better than the alternatives. Greedy Socialism & Communism.

P.S. I still feel bad for the workers & their families at all levels in these companies. All levels that is, except those at the very top, they never lose.

 

[Tail_Gunner]

Re: brunswick in trouble?

I wasn't posting econ.
The post was in response to mscher, about boating and camping, and lifestyle changes, and the value it can bring to a persons life.


A fat bloated under capitalized company that builds products its customers no longer want or can afford, needs to change or close in a capitalist economy. It happens all the time.
It should be good in the long run for the company, its stockholders, and its remaining employees; if the company survives.

Sure it stinks what is happening to the workers, communities, families, etc.. Been there done that - 3 times.

Am I glad I can pick up deals in this soft market? You bet. That means I'll be able to make a few more bucks to put in my bank account, add to my retirement, or improve my lifestyle.

Its too bad that you are so easily disturbed.

First i will aplogize for a attack on person, really it does no good. You have a thought process and right wrong or indifferent...it is truly your's and need's some respect.

Lashing out as did was a result of frustration...I do not know how recent event's in the econ are effecting you....actually i can only hope you go unscathed......I really dont know how to post without fear mongoring....but it time that each and everyone one of us take notice of our neighbor's plight.

Very disturbing thing's are occuring in our finacial system..I am going to end this with just saying...buy american stand behind your neighbor and hold your state rep accountable for everything....You see are leaders cannot do what need's to be done without you. These are times to rally around your flag and forget one's own self intrest's.

Sorry Roscoe for the flame....

 

[External Combustion]

Re: brunswick in trouble?

Well said Tail_Gunner.

Now how do we get the coporate execs to downplay the short term profits and concentrate on the long term strategies?

 

[SgtMaj]

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[RollingWanderer]

Re: brunswick in trouble?

Ok...I'm gonna post a little mini-rant here, and I'll apologize up front to anyone who get offended.

What this country really needs is long term (think lifetime) financial planning being taught either in the schools or at home. Where is a debate for another time, though I'd have to say that financial planning being taught in the home is an obvious failure at this point.

Booms and busts happen all the time. They affect wide range industries and sectors of the population. Busts are going to happen when markets are artificially inflated, and instead of everyone running out and spending every penny they have...they should be saving. People should not buy more house/boat/car/whatever than they can afford counting on higher future earnings and/or markets to continue unsustainable growth.

When my wife and I bought our house a few years ago, we were approved for a stupid large amount of money. Did we run out and use that up? NOPE! We bought less house than we could afford with our current income and are still in it today with no fears of foreclosure. Meanwhile, I can't tell you how many houses in our neighborhood are being sold by banks.

Same deal when we bought our camper, now you see them for sale all over because people can't afford them. When we bought our '92 Celebrity a month ago, we got a good deal on it due to the current market climate, but I'm not apologizing. Again, could we buy more boat, sure, but I'm sure food and service prices are going to increase for some time.

Moral of the story...when in boom times, don't spend all your money...live as though the bottom is going to drop out tomorrow, and when it does...you'll be ready.

Now, let me temper this a little bit and say that I absolutely feel bad for all the workers and their families who were/are being laid off. I hope they were financially prepared and are able to find suitable replacement work. I also understand that it's next to impossible to survive working for minimum wage or just above. It's a real shame when earning minimum wage still places one UNDER the federal poverty income guidelines...but now I'm starting a whole 'nother rant.

-RW...donning my flame suit and ducking

 

[Adrift]

Re: brunswick in trouble?

Well said Tail_Gunner.

Now how do we get the coporate execs to downplay the short term profits and concentrate on the long term strategies?

My $.02.

Eliminate bonuses/compensation tied to increased stock value.

IMO this is the single biggest reason short term thinking pervades our business culture. A world where 10% growth is seen as failure because last year there was 12% growth.

 

[Joe Dirt]

Re: brunswick in trouble?

I think all boat manufacturers are in trouble.

Heck- I don't think it really stops there- it's just about all manufacturers tightening the belts. I think this new economy will localize a lot of businesses, and they will open other locations around the US, becasue trucking costs are getting to be so large- I am in the trucking industry, and the current costs to our customers were unfathomable 5 years ago.

 

[Tacklewasher]

Re: brunswick in trouble?

My $.02.

Eliminate bonuses/compensation tied to increased stock value.

IMO this is the single biggest reason short term thinking pervades our business culture. A world where 10% growth is seen as failure because last year there was 12% growth.

This would take long-term thinking, planning etc. by the shareholders. Not going to happen in the public market (for the most part). And you can't fault the management for short term thinking when the owners (shareholders) all have the same short term window.