Brunswick sheds staff, idles plants and 'mothballs' one facility

2:35 AM Wed 7 Jan 2009 GMT

'CEO of Brunswick, Dustan McCoy says the closures are due to ’extraordinary developments’ in the global financial markets.' .

Brunswick Corp has announced a series of production cuts, layoffs and one plant closure in response to the global downturn in consumer spending, or as a spokesman put it: "the challenging marine marketplace".

The company aims "to shrink its North American footprint", according to its statement and will idle some of its US plants for one week a month through June. It also plans to "mothball" one of its plants which makes Sea Ray brand boats near Knoxville, Tennessee. Production will be moved to facilities in Knoxville, Vonore, Tennessee, Palm Coast, Florida, and Mexico.

Brunswick employs 1,500 staff in the Knoxville area and said it would seek to find roles for the 300 affected by these moves.

The company also intends to cut 275 additional positions at its Sea Ray manufacturing and product-development facilities in Knoxville and Florida this week.

Brunswick shares closed up 13.1% at $5.91. The stock has shed nearly two- thirds of its value over the past year as the weakening global economy has hit big-ticket discretionary purchases. Analysts expect full-year 2008 sales to fall to $4.85 billion from $5.61 billion in 2007 amid declines at its other business units.

The Lakeview, Illinois company derives two-thirds of its revenue from recreational boats and engines - 30% of that from overseas - and suffered a 40% slide in sales during the third quarter.

In the US, Brunswick also produces pool and billiards tables and fitness equipment and operates a chain of bowling alleys.

The production cuts are part of efforts to shave $300 million from its fixed- cost base by the end of the year. It is cutting the number of North American plants to 14 by the end of 2009compared with 29 in 2007.

by Jeni Bone

Newsfeed supplied by

#News #Sailing #North

Brunswick sheds staff, idles plants and 'mothballs' one facility

Sports/News

Weather Forecasts & Live Reports

Buy & Sell/Classifieds