Mercruiser on the verge of bankrupt? A rumor?

[Fordiesel69]

Anyone know if mercruiser is on its last legs? A local shop says parts are very hard to get and they are not doing good. Is this hogwash?

 

[sickwilly]

Re: Mercruiser on the verge of bankrupt? A rumor?

Well, their parent company Brunswicks's stock has almost tripled from its low, that does not usually happen when a company is on the verge of bankruptcy.

Glad to say I bought the kids some shares at $5, at the bottom, now worth $12.50 and still going up.

 

[mike343]

Re: Mercruiser on the verge of bankrupt? A rumor?

Who knows, but Mercury is a part of Brunswick Corp. not a stand alone entity.

 

[werthert]

Re: Mercruiser on the verge of bankrupt? A rumor?

I sure hope it's not true!

 

[H20Rat]

Re: Mercruiser on the verge of bankrupt? A rumor?

Is the dealer actually paying their bills? I've heard of lots of dealers putting the bad rap back on the mfg's, when the reality is the dealer isn't paying outstanding bills, and the mfg finally cuts them off. The 'official' story from the dealer at that point is that the mfg is having a hard time and can't send inventory.

 

[Fordiesel69]

Re: Mercruiser on the verge of bankrupt? A rumor?

That sounds more like it.

 

[haulnazz15]

Re: Mercruiser on the verge of bankrupt? A rumor?

Sincerely doubt they are going anywhere since they own the majority of the market. Now Mercury Marine is doing some consolidation (heard they were pulling out of Stillwater, OK) but I don't think that means much.

 

[scutly]

Re: Mercruiser on the verge of bankrupt? A rumor?

in the past 30 or so years. who is the leading manufacturer of I/O engines? merc? VP? OMC? everywhere i look its all mercruiser. gotta figure they can make tons of money on parts alone even if they stopped producing new engines. i know lots of folks who only use quicksilver/merc parts when available as opposed to aftermarket companies like Sierra.

 

[Dave1251]

Re: Mercruiser on the verge of bankrupt? A rumor?

in the past 30 or so years. who is the leading manufacturer of I/O engines? merc? VP? OMC? everywhere i look its all mercruiser. gotta figure they can make tons of money on parts alone even if they stopped producing new engines. i know lots of folks who only use quicksilver/merc parts when available as opposed to aftermarket companies like Sierra.

All you have to do is look at Brunswick's financail statetments to see that Mercury or any of it's boat companies are loossing a ton of money in todays market. No they are not bankrupt, but they can not make money on parts alone. Brunwick has closed many of there manufacturing plants trying to reduced cost. Brunswick has sold BAJA and Maxum boats is gone. Again to save money.

This year it has been very hard to get many part from Merc, Volvo Penta or most boat companies. I have had some parts on order for 90 days. Part of the reason is GM bankruptcy made some engine parts hard to get. Among other reasons include everyone reduced there inventories to very low levels.

I was told by one engine manufacurers that they no longer give delivery promises but "estimated time of arrival". Try and tell a customer that you can no longer give them a promese date for parts needed to fix their boats.

And yes there are dealers having problems and some will not make it through the winter. But most of the problem with getting parts is at the manufacturer level because dealers do make money on parts sales.

 

[joe_nj]

Re: Mercruiser on the verge of bankrupt? A rumor?

Brunswick Financials - July 30, 2009 - 2nd quarter results

http://www.brunswick.com/news/newsstories/release/1/1314339.php

Brunswick sales were off 56% overall, and mercury sales off 42%. They've drastically cut production and inventory but they seem to have enough cash to stay in business. Getting parts could become increasingly difficult until the economy turns around. (I need a new starter - I better order it now.)

 

[26aftcab454]

Re: Mercruiser on the verge of bankrupt? A rumor?

because a company files for government bankrupt protection does not mean it will close. they have too many operating {$$$ }operations to just disapear.

 

[werthert]

Re: Mercruiser on the verge of bankrupt? A rumor?

Perhaps I wouldn't be suprised... companies have a hard time changing their business model. Still, I would imagine the profit on new boats is upwards of 50% with the insane prices they charge.

 

[5150abf]

Re: Mercruiser on the verge of bankrupt? A rumor?

Last I heard they were working every other week still and we are having to wait on almost every engine we use.

If they did file someone would snap them up in a heart beat, as stated they own a huge market share .

 

[tashasdaddy]

Re: Mercruiser on the verge of bankrupt? A rumor?

lest get something straight. Brunswick own close to 30 brands of boats, they sell them with Mercruiser and Mercury power plants only. that is the reason you see so many of their engines on the water. if a buyer wants that boat, he HAS to have a Merc power plant.

also many of there lines do not come with the Outboard option, Just I/O power. the reason is that Mercury Outboards, does not have a low cost marketable outboard, for these boats. it is cheaper for them to use the I/O power than the OB. this info came directly from a Marketing Director with one of the Brunswick boat lines.

if you want a Johnson, Evinrude, VP you have to buy outside the Brunswick brands.

Brunswick has also closed many of it's manufacturing plants, and consolidated there mfgring, into the major plants.

doing this, gives them another advantage. supply and demand, low supply for demand, raises prices.

 

[sickwilly]

Re: Mercruiser on the verge of bankrupt? A rumor?

Right, Tashasdaddy, which is all to say that unlike GM or Chrysler, they have been very adept at making the changes necessary to weather this storm, which is why they have not filed for bankruptcy and if you bought $10,000 of their stock 2 months about you would be sitting on $23,700 right now.

 

[haulnazz15]

Re: Mercruiser on the verge of bankrupt? A rumor?

Mercruiser doesn't make starters to me knowledge. Go have your reuilt at a starter-alternator shop and save $50 versus buying new.

I also don't understand what you mean by not having an outboard option. Mercury Marine is the option, just because they don't offer an outboard option on a boat line doesn't mean anything. They make outboard engines all the way up to 300HP, lol. It probably is cheaper to use an I/O because they are easier to build. New outboards from any manufacturer are twice what a new I/O is. It would still be cheaper to use I/O even if they bought Evinrude/etc outboards to use.

 

[H20Rat]

Re: Mercruiser on the verge of bankrupt? A rumor?

I also don't understand what you mean by not having an outboard option. Mercury Marine is the option, just because they don't offer an outboard option on a boat line doesn't mean anything. They make outboard engines all the way up to 300HP, lol. It probably is cheaper to use an I/O because they are easier to build.

Unless things have changed recently, Mercury doesn't make a 4 stroke above 60hp.

They are rebranded yamaha's with possibly a mercury lower unit. I know the Mercury 60hp I bought this last spring came with a mercury fuel fitting, which didn't fit! I needed to get the correct one from the dealer, a yamaha fitting. Anyway, point is they probably make very little on those by sticking their label on them.

 

[haulnazz15]

Re: Mercruiser on the verge of bankrupt? A rumor?

What is the Mercury Verado? 4-stroke, up to 300HP

 

[H20Rat]

Re: Mercruiser on the verge of bankrupt? A rumor?

What is the Mercury Verado? 4-stroke, up to 300HP

are the verado's merc engines? I had heard those were possibly.

 

[sickwilly]

Re: Mercruiser on the verge of bankrupt? A rumor?

Right, Tashasdaddy, which is all to say that unlike GM or Chrysler, they have been very adept at making the changes necessary to weather this storm, which is why they have not filed for bankruptcy and if you bought $10,000 of their stock 2 months about you would be sitting on $23,700 right now.

And with today's (current) 20% increase, your 10K would be over 40K now -- but why? Why in the heck does their stock keep going up?

I ask because I need to know when the hell to sell -- and I am not some goldman sacks insider -- just a chump who bought a few shares for his kids.

Why in the hell is this companies stock doing so damn good?