BRUNSWICK
BLUEWATER BRANDS
TO
CEASE PRODUCTION AT NEWBERRY, S.C., FACILITY
LAKE FOREST, Ill., May 13, 2008 –
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”Ô 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, Örnvik, 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 www.brunswick.com.
