Brunswick cuts production on sluggish sales
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Article Date: 2007-07-23
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Brunswick has announced it is to cut production of marine products in the second-half of 2007.
The US-based firm cited continued weakness in its domestic retail markets as the reason behind its downscaling production.
As a result of the cuts, the firm has adjusted its earnings estimate for 2007 to a figure somewhere between £0.60p and £0.67 per share.
Dustan E. McCoy, Brunswick chairman and chief executive, said: "Preliminary industry data indicates that retail sales are down by as much as 13 per cent in our key category of sterndrive and inboard powered fiberglass boats in the second quarter, which historically represents the strongest period of the selling season.
"Through the first half of the year, wholesale shipments have been significantly below levels in the same period a year ago, as well as below 2007 retail sales.
"We also see no reason to believe that retail trends will reverse in the second half of the year, which is the slowest period for boat sales. As we go into the 2008 model year, which began July 1st, commitments received from our dealers support our view of the retail environment."
News of the company's projections comes after it this month announced that it has agreed to sell Brunswick New Technologies fleet management business unit to Navman Wireless Holdings.
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