Sail-World.com : Brunswick closes three US plants
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Brunswick closes three US plants |
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'CEO of Brunswick, Dustan McCoy says the closures are due to ’extraordinary developments’ in the global financial markets.'
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America's Brunswick Corporation - the world's largest manufacturer of boats and marine engines - is to close three US Marine plants permanently and mothball its facility in Navassa, North Carolina. The closures will result in the elimination of 1,450 jobs.
Dustan McCoy, Brunswick's chairman and CEO, said the move would accelerate its previously announced initiative to downsize the company due to 'extraordinary developments' in the global financial markets.
'From the start of the year, we've experienced a 3,500-point drop in the Dow, mortgage and housing crises, record prices for oil, and, now, shrinking credit availability for companies and individuals,' said Mr McCoy. He added sales of fibreglass and aluminium boats had tumbled more than 40% in July and August and September was looking even worse.
Brunswick said US Marine's manufacturing facilities in Pipestone, Minnesota, Roseburg, Oregon, and Arlington, Washington, would be closed by the end of this year and a fourth facility in Navassa, North Carolina, that builds Meridian motoryachts would be mothballed by early 2009.
Production will be transferred to other facilities. Sea Ray is also suspending production at three plants near Knoxville, Tennessee, from the week of October 27 through the rest of 2008.
'In these difficult times as we move into the slowest selling season in the marine industry, it is clear that we must aggressively support our dealer network as they cope with the effects of the economic turbulence,' said McCoy. 'We remain on target to reduce fixed costs by $300m by the end of 2009 compared with 2007 spending levels, and expect to exit 2008 with more than $125m of fixed-cost reductions implemented. In fact, actions completed or currently under way will deliver about $75m of cost savings this year.'
The company has now cut its work force by more than a third since the beginning of the year.
Brunswick's stock fell by as much as 25% during yesterday's trading, but finished the day just 18.8% down.
More at www.brunswick.com
by Media Services Share
12:27 AM Sat 11 Oct 2008 GMT
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