Brunswick Corporation : Brunswick Corporation : Brunswick To Consolidate
Yacht, Motor Yacht Production
LAKE FOREST, Ill., March 4, 2013 - Brunswick Corporation (NYSE: BC) announced
today that it will consolidate its yacht and motor yacht production at its
Palm Coast, Fla., manufacturing plant. As a result, Brunswick will suspend
manufacturing at its Sykes Creek boat manufacturing facility in nearby Merritt
Island, Fla., at the end of June. The Brunswick Boat Group's (BBG) Product
Development and Engineering center, located adjacent to the Sykes Creek plant,
will remain in operation. In addition, BBG will continue to utilize the
existing customer reception facilities, sales and customer service offices,
and wet slips located on the Merritt Island campus.
The Sykes Creek plant, which currently manufactures Sea Ray and Meridian
yachts and motor yachts from 51 to 61 feet in length, currently employs
approximately 205 people in manufacturing. The Company is evaluating job
opportunities for Sykes Creek personnel to help transition production to Palm
Coast or at other BBG manufacturing facilities for those employees who are
interested and able to relocate or commute.
"This action allows us to reduce production costs and shorten production cycle
times of yachts. Further, the transition is planned so that we can take full
advantage of initial retail demand for our new yacht models that we are
bringing to the marketplace over the next two years. Concurrent with the
transition, comprehensive marketing materials will be provided to our dealer
network to support the pre-sale of the new yacht models under development. We
can still support significant sales growth in these segments, as our
post-consolidation manufacturing footprint will retain capacity to compete in
a market in excess of 2.5 times current worldwide demand for yachts and motor
yachts," said BBG President Andy Graves.
"Difficult as it was, this action was a necessary step to match capacity with
market demand, position Sea Ray for success with new yacht product development
programs, and work toward our near-term operational and financial objectives,"
Brunswick Chairman and Chief Executive Officer Dusty McCoy said.
When the entire consolidation is completed, the Company estimates that this
action will result in annual savings of $3 million - $5 million beginning in
2014. Restructuring and impairment charges of $6 million - $8 million are
expected to be recognized as a result of this action in 2013.
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; Attwood marine parts and accessories;
Land 'N' Sea, Kellogg Marine, and Diversified Marine parts and accessories
distributors; Bayliner, Boston Whaler, Brunswick Commercial and Government
Products, Crestliner, Cypress Cay, Harris FloteBote, Lowe, Lund, Meridian,
Princecraft, Quicksilver, Rayglass, Sea Ray, Trophy, Uttern and Valiant boats;
Life Fitness and Hammer Strength fitness equipment; Brunswick bowling centers,
equipment and consumer products; Brunswick billiards tables and foosball
tables. For more information, visit http://www.brunswick.com
Contact: Daniel Kubera
Director - Media Relations and Corporate Communications
This announcement is distributed by Thomson Reuters on behalf of Thomson
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information contained therein.
Source: Brunswick Corporation via Thomson Reuters ONE
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