Marine
Brunswick Bluewater Brands to Cease Production at Newberry, S.C., Facility
LAKE FOREST, Ill., May 13 /PRNewswire-FirstCall/ -- Brunswick Corporation
(NYSE: BC) announced today that it will cease production of its Bluewater
Marine brands -- including Sea Pro, Sea Boss, Palmetto and Laguna -- with the
upcoming 2009 model year, which commences July 1. As a result of this action,
Brunswick will close its production facility in Newberry, S.C., by the end of
June.
"The U.S. marine industry has been in a prolonged slowdown since late
2005, driven by an uncertain economy, high fuel prices, the housing slump and
other economic factors that have affected consumers' confidence and eroded
their discretionary spending," explained Dustan E. McCoy, Brunswick chairman
and chief executive officer. "As a result, we are assessing the recovery
potential for all marine segments in which we participate, their fragmented
nature, the costs of our continued presence in certain of them, and the
position of our brands. Our work is ongoing and is focused on developing
profitable brand positioning in all segments. With this action, we believe we
will solidify our presence in the highly fragmented saltwater segment by
concentrating our efforts and leveraging our resources on such brands as
Boston Whaler, Triton, Trophy, and our sportfishing offerings from Hatteras,
Cabo and Albemarle, while sharpening our market focus and providing necessary
cost reductions."
Brunswick plans to cease production at the Newberry facility by the end of
June 2008. Approximately 175 positions will be affected by this action, and
qualifying employees will receive assistance aimed at helping them transition
to other employment.
"This market-driven action should not be viewed as a reflection on the
performance of our employees," McCoy added. "As always, we will work hard
with all affected-employees, dealers, suppliers, communities and consumers-to
minimize the disruption that this decision may cause."
As a result of these actions, the company said it will record a pretax
charge of approximately $25 million to $30 million in the second quarter of
2008 to cover asset write-downs and other costs associated with the plant
closure. Of that total, approximately 75 percent of the charge is non-cash
and the remainder is cash. The company estimates that it will realize
annualized pretax savings of approximately $9 million stemming from this
decision.
Forward-Looking Statements
Certain statements in this news release are forward looking as defined in
the Private Securities Litigation Reform Act of 1995. These uncertainties
include, but are not limited to, the execution of the restructuring plan,
economic conditions and other risks described in the company's 2007 Annual
Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended
March 29, 2008.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to
instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including
Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and
inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron
electronic controls; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler,
Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Laguna, Lowe,
Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Rayglass,
Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and
Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg
Marine, Diversified Marine and Benrock parts and accessories distributors; IDS
dealer management systems; Life Fitness, Hammer Strength and ParaBody fitness
equipment; Brunswick bowling centers, equipment and consumer products;
Brunswick billiards tables; and Dynamo, Tornado and Valley pool tables, Air
Hockey and foosball tables. For more information, visit
http://www.brunswick.com.
SOURCE: Brunswick Corporation
CONTACT: Daniel Kubera, Director - Media Relations and Corporate
Communications of Brunswick Corporation, +1-847-735-4617,
daniel.kubera@brunswick.com
Web site: http://www.brunswick.com
