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hauptjm posted 05-23-2006 05:25 PM ET (US)
In the newest issue of Soundings Trade Only, Brunswick stated a big decrease in first quarter earnings (-29%) and the sale of the Brunswick New Technologies (BNT) unit. BNT products are the GPS technologies.
The earnings decrease was attributed to their Marine business, as other lines (bowling, billiards, etc) were healthy. The sale of BNT was for the Company to focus on its core segments and use the proceeds for a stock buyback.
The company reported a 5% growth in sales in the Boat segment driven by acquisitions.
jimh posted 05-24-2006 03:23 PM ET (US)
Who bought BNT? How much?
chopbuster posted 05-24-2006 08:27 PM ET (US)
"Survey says"
70% of all boat purchases in 2005 were of the used flavor. This is impacting sales for new boat Mfg's across the board.
fourdfish posted 05-24-2006 11:40 PM ET (US)
It is also great for the repower market!
swist posted 05-25-2006 07:06 AM ET (US)
Yeah, and Mercury (at least in outboards) does not seem to be the engine of choice for repowers.
But I have no hard numbers to base this impression on.
hauptjm posted 05-25-2006 09:27 AM ET (US)
jimh,
The BNT unit is for sale. My post should have made that clearer. It seems to me that the R&D cost involved in the Verado product, the remaking of the Opti line and all of the purchasing has had a short-term effect. I would also assume, knowing Brunswick's past, this is nothing more than a temporary effect. One thing Brunswick seems to know how to do very well is make money.
One caveat to this would be cost of acquisition. When you have a company showing increases in sales due to acquisition (their own statement) and a significant drop in revenue, this can be a bad indicator of paying to much. We all know Brunswick has been buying transoms with an unprecedented fervor. They need to prove that these purchases will add to the bottom line.
The sale of the BNT unit, concentrating on its core businesses and making the new products profitable is what is needed.
Draftmanswife posted 05-25-2006 05:18 PM ET (US)
We have always agreeded that the marine business in general is volatile. What seems to go up comes down and what goes down surly goes up..
Janis
SIM posted 05-25-2006 07:48 PM ET (US)
In other Mercury news...........similar to Yamaha, Mercury is going to drop there model year designations. No more model years.....just born on dates.
Thought the group would like to know.
Andy

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Author	Topic: Brunswick News
hauptjm	posted 05-23-2006 05:25 PM ET (US) In the newest issue of Soundings Trade Only, Brunswick stated a big decrease in first quarter earnings (-29%) and the sale of the Brunswick New Technologies (BNT) unit. BNT products are the GPS technologies. The earnings decrease was attributed to their Marine business, as other lines (bowling, billiards, etc) were healthy. The sale of BNT was for the Company to focus on its core segments and use the proceeds for a stock buyback. The company reported a 5% growth in sales in the Boat segment driven by acquisitions.
jimh	posted 05-24-2006 03:23 PM ET (US) Who bought BNT? How much?
chopbuster	posted 05-24-2006 08:27 PM ET (US) "Survey says" 70% of all boat purchases in 2005 were of the used flavor. This is impacting sales for new boat Mfg's across the board.
fourdfish	posted 05-24-2006 11:40 PM ET (US) It is also great for the repower market!
swist	posted 05-25-2006 07:06 AM ET (US) Yeah, and Mercury (at least in outboards) does not seem to be the engine of choice for repowers. But I have no hard numbers to base this impression on.
hauptjm	posted 05-25-2006 09:27 AM ET (US) jimh, The BNT unit is for sale. My post should have made that clearer. It seems to me that the R&D cost involved in the Verado product, the remaking of the Opti line and all of the purchasing has had a short-term effect. I would also assume, knowing Brunswick's past, this is nothing more than a temporary effect. One thing Brunswick seems to know how to do very well is make money. One caveat to this would be cost of acquisition. When you have a company showing increases in sales due to acquisition (their own statement) and a significant drop in revenue, this can be a bad indicator of paying to much. We all know Brunswick has been buying transoms with an unprecedented fervor. They need to prove that these purchases will add to the bottom line. The sale of the BNT unit, concentrating on its core businesses and making the new products profitable is what is needed.
Draftmanswife	posted 05-25-2006 05:18 PM ET (US) We have always agreeded that the marine business in general is volatile. What seems to go up comes down and what goes down surly goes up.. Janis
SIM	posted 05-25-2006 07:48 PM ET (US) In other Mercury news...........similar to Yamaha, Mercury is going to drop there model year designations. No more model years.....just born on dates. Thought the group would like to know. Andy