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Author Topic:   Brunswick CEO Webcast
jimh posted 02-08-2002 08:49 AM ET (US)   Profile for jimh   Send Email to jimh  
From Brunswick Press Release:

---
LAKE FOREST, Ill., Feb 7, 2002
Brunswick Corporation (NYSE: BC) Chairman and Chief Executive Officer George W. Buckley will be a featured speaker at the upcoming Salomon Smith Barney Leisure Conference in New York City on Feb. 11.

Buckley's presentation will be Webcast live beginning at approximately 9:30 a.m. EST. The Webcast can be accessed through the Brunswick
Corporation Web site at www.brunswick.com . It also can be heard through Salomon Smith Barney at http://www.veracast.com/ssb/2002/leisure/76104197.cfm .

To listen to the presentation on the Brunswick Web site, go to the site at least 15 minutes before the call to download and install any needed audio software. Replays will be available at both sites.
---

Perhaps he'll tell more about the promised new engines for Mercury.

jimh posted 02-11-2002 01:57 PM ET (US)     Profile for jimh  Send Email to jimh     
Brunswick CEO George Buckley spoke with investors this morning, but did not leak any news about the promised "revolutionary" engine innovations to be revealed at the Miami Boat Show.

One interesting observation: while speaking of the strength of the various brands in the Brunswick line up of companies, Buckley mentioned only a few, and in this order:
"Mercury, Sea Ray, Boston Whaler..."

The graphic that accompanied this portion of the presentation had the brands arranged in a different order.

Buckley also highlighted the technical capabilites of Brunswick, which include having the only high-pressure lost foam aluminum casting plant in North American, and one of only two in the world. The capability, which he recognized might cause investment bankers to yawn, was an important asset as it allows Brunswick to make very high quality aluminum castings, world class level products. A graphic showed the interior of the casting plant to the audience.

Also worthy of mention by the Brunswick CEO was the technologically advanced PCM555 engine control unit, which they plan to market to non-marine engine applications.

Brunswick's zero-styrene closed molding technology was also mentioned as an important asset, particularly in light as environment regulations become more restrictive on molding plant emissions.

More comments and details to follow...

--jimh

jimh posted 02-11-2002 08:17 PM ET (US)     Profile for jimh  Send Email to jimh     
More on Brunswick Corporation CEO George Buckley's presentation today:

The unidentified moderator introduced Buckley to the audience of investment advisors by noting that shares of Brunswick Corporation had outperformed the market by 70% since Buckley took control of the company.

Buckley acknowledged the compliment but cited "relentless execution" of the company's business plan as the reason for its success.

He noted that Brunswick (BC) was the market leader in the four markets it competed:
--marine engines
--boats
--fitness gear
--bowling.

Buckley thought the company's performance in 2001 was excellent in the face of a very down market in the boating businesses.

He cited constant growth in the bowling market inspite of contrary economic conditions.

Turning his focus to the marine market, he noted that even though some boat show sales are "up huge numbers" they expect further shrinkage in the U.S. market to occur this year.

The company would "leverage" itself primarily in engines and electronic controls, and not just necessarily in the marine market.

He spoke at some length about SMART CRAFT gauges, which he described as collecting information from the Engine Control Unit (ECU) for display to the pilot. This technology would offer a network for future seemless integration of new devices. A graphic mentioned devices like "steer-by-wire", "trim-by-wire", "[propeller]pitch-by-wire", and other electronic controls and inputs.

Buckley specifically cited Mercury as the world's best selling outboard, and again mentioned strong market share gains in overseas markets.

(Other elements of the presentation are mentioned in a previous posting).

A short question and answer session followed, and in response to a inquiry about "market landscape" [don't you love these business buzz words?] Buckley characterized it thus:

The bancruptcy of OMC elicited a bid from BC, but it was unsuccessful. Winner Bombardier bought a "challenged" company. They are wedded to three engine technologies:
--two-stroke
--low emission two stroke
--four-stoke.

The first of these is being legislated out of existance around the world.

In the second, Bombardier is pretty good at this technology, but...

In the third they have no capabilities (and rely on rebranded engines from others).

The Japanese competitors are "relentless" and good, but BC's market shares show it is strong.

Buckley characterized the outboard market to his audience "basically reduced" to a competition between YAMAHA and MERCURY.

In the stern drive market, it is similar, with VOLVO and MERCURY (although Mercury is very dominant).

Turning to the boat business sector, Buckely described this market as becoming "bifurcated", with competitor GENMAR becoming concentrated in smaller size boats while BC moves to larger size boats and yachts.

Speaking about boat show sales, Buckley noted that the London show has sales up 80%, several American shows (NY) were up 40%, and Seattle was flat.

Sales at shows or follow-up sales represent only 30% of the year, and using the metaphor of seeing a light coming ahead in a tunnel, Buckley could not characterize it as a strong light at a far distance, or a weak light close by.

Significantly, the number of boats "in the pipeline" was down to a supply of only 17-20 weeks which he characterized as a good number.

---Some comments from jimh---

Brunswick, like many modern corporations, now provides on-line replay of these presentations through their corporate websites. Although these presentations have been going on for years, I find it quite interesting that they are now much more available to the general public, in as much as most of us would not have taken the time to attend such an event in person (if we were not investment analysists in the recreation industry). The information thus presented is truly becoming public knowledge for perhaps the first time.

--jimh

jimh posted 02-11-2002 08:25 PM ET (US)     Profile for jimh  Send Email to jimh     
[administrative post]
lhg posted 02-11-2002 08:46 PM ET (US)     Profile for lhg    
From recent observations boating around the "Gold Coast" of Southeast Florida, the largest market for outboards in the US, I would have to agree with Buckley that Mercury and Yamaha are the "action". It is practically all you see on the water, with Mercurys everywhere, both EFI's and OPtimax's, and many new Yamahas also, including the new 225 4-strokes, which seem quite popular. Newer OMC engines are now seldom seen, since the shorter life of all older outboards in this harsh marine enviroment has eliminated the older models, and since '98 not many new OMC engines have been sold, or survived the Ficht problems. The absence of the JohnRude engines is very noticeable. Bombardier will need all of Genmar's help it can get to break back into this market. At $26,000 a pair, many will simply not take the risk on these 225 Fichts, as good as they may be. The Optimax's now seem to be flourishing, however, as I have seen hundreds of them out and about, all seemingly running fine. Same for Yamaha HPDI's.

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