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Dick E posted 07-30-2009 04:26 PM ET (US)
Brunswick stock up over 25 % Largely from improved cash flow.
When you reduce inventory you generate cash. It does not mean things are better.Laying off people stinks. Her an article from the Chicago Tribune.
Jul. 30--Brunswick Corp. (BC) stock soared more than 25 percent Thursday, though the company reported a sizable net loss for the second quarter on sharply lower revenue.
The Lake Forest-based recreational products manufacturer posted a net loss of $163.7 million, or $1.85 per share, compared with a net loss of $6 million, or 7 cents per share, a year earlier. The most recent results included 45 cents per share in one-time charges.
Revenue fell 52 percent, to $718.3 million from $1.48 billion, with marine sales dropping 56 percent.
Investors were likely responding to Brunswick's improved cash position during the quarter, which improves its chances of riding out the current downturn without being forced to seek bankruptcy protection.
Brunswick held $461.2 million in cash at quarter's end, up from $317.5 million at the end of 2008. McCoy credited the improved liquidity to the company's decision to lay off workers and reduce production output as sales of its boats, bowling and gym equipment dropped.
"We are capably managing through these issues and believe they will provide opportunities for those like us that emerge from this downturn with a healthy position," Brunswick Chief Executive Dustan McCoy told investors during the company's quarterly earnings call.
The maker of boating, billiard and bowling products said it had cash on hand at the quarter's end of $461.2 million, up from the year-end balance of $317.5 million.
"We continue to successfully manage our operations for cash and maintain excellent levels of liquidity," McCoy said.
Shares were up $1.34 cents, or 25.9 percent, to $6.50 in midday trading on the New York Stock Exchange.
To see more of the Chicago Tribune, or to subscribe to the newspaper, go to http://www.chicagotribune.com.
Copyright (c) 2009, Chicago Tribune
Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

hauptjm posted 07-30-2009 05:56 PM ET (US)
Cash keeps the debt holders happy as well. I say good for them. It's better to do whatever necessary to keep the company alive so "when" things do improve, there is a place for those workers to return to versus not.
I hope they hang in there!
R T M posted 07-30-2009 06:25 PM ET (US)
Home sales are up too, We are at the bottom, the turnaround has started. this is bad news for the naysayers.
rich/Binkie
TransAm posted 07-30-2009 06:33 PM ET (US)
Home sales might be up in your trailer park Binks, but not many other places. Regarding the sales figures for Brunswick, I heard today on the radio sales were off 72%.
WT posted 07-30-2009 08:08 PM ET (US)
I believe that we are only in the top of the 4th inning.
Brunswick has to cut overhead and try to survive.
All you have to do is ask the business owners you do business with. Ask your local grocer, dry cleaner, restaurants, golf course, car wash, barber, clothing store,tackle shops, boat dealer, car dealer, etc. if they are doing very well.....
The big drop in housing is only beginning for homes priced over $800,000. I predict that it will be very common to see foreclosed homes that originally sold for $2M that will re-sell at $700,000 or less.
Good luck to all,
Warren
TransAm posted 07-30-2009 08:46 PM ET (US)
I'm not sure how many $2M homes you will see selling for $700K or less. That would likely require the bank to sell the house extremely short and take a $1.0M or more haircut. Assuming folks who allow a $2M home to go to foreclosure leveraged the property at 80% or more, that means a loan of $1.6M or so. So, unless mandated to do so, a bank would not ordinarily sell a foreclosed home with that kind of write down. There will obviously be some exceptions such as the property was grossly over-valued to begin with, but generally speaking, home values will not drop 65%.
R T M posted 07-30-2009 08:59 PM ET (US)
http://www.tampabay.com/news/business/realestate/article1020980.ece
rich/Binkie
hauptjm posted 07-30-2009 09:46 PM ET (US)
I have a home in my neighborhood that sold for $1.3 million three years ago. The owner, an executive with one of the local refiners, has been transferred. Initially, it went on the market for $1.5 million, it now (six months later) is offered for $1.0 million. I suspect it won't move until it reaches the $750k to $850k range. I sure hope I'm wrong!
TransAm posted 07-30-2009 09:48 PM ET (US)
Don't just read the headlines Bink. Here is a key indicator from that article.

quote:
Home Encounter said distressed sales — both foreclosures and preforeclosures — constituted 37 percent of sales in June.
If sales are artificially high for one month, because of cheap inventory, that hardly constitutes a housing turnaround.
Another interesting note from the article
quote:
Nevertheless, the sheer volume of cut-rate distressed properties is driving the sales turnaround.
This is not a market turn around; simply some bottom feeders taking advantage of distressed sales. Do some research on new home starts.
R T M posted 07-30-2009 10:06 PM ET (US)
Read between the lines, At least the foreclosed homes are starting to be used up. Nothing good will happen until they are gone. Who will have a new home built when they can get a foreclosure for real cheap. When they are gone, prices will increase and folks will start thinking new. If your new in the business you might think construction is always gangbusters, not so. Save your money and go fishing.
rich/Binkie
HAPPYJIM posted 07-30-2009 10:21 PM ET (US)
I go by 3 small mom & pop boat sale yards almost every day. The same new boats have been sitting all year long. It doesn't look like anything is moving in any of these yards. I live in an area where lots of military and government jobs are plentiful and money is there but it sure looks like people are holding out for some reason. I am in need of a 2500 square foot metal building with a lean to for storage but I'm getting very skeptical about the next few years. I bought a 60K sweeper truck for my parking lot sweeping business but have had customers cut back instead of wanting more services.
The government is spending money at an alarming rate. I'm no financial wizard but have been in business almost 30 years and know you can't spend money that you don't have.....at least not very long. In just 7 short months the only thing that I can see is More taxes, more debt, more welfare, more regulation, more wasteful spending and a skyrocketing national debt that our great grandchildren will be paying for. On top of that, it looks like national health care is breaking the doors down to become another free service for me to pay for.
Things just don't look as rosey as they did a year ago. I hope things make a turn soon but it just doesn't make much sense to me to keep spending money that we don't have to make the economy better.
TransAm posted 07-30-2009 10:27 PM ET (US)
I didn't hear the news that banks stopped foreclosing, or that foreclosure rates were in such a decline. Foreclosures create unwanted sales and this will continue for some time. Don't try and prop your boy's policies up using foreclosure sales as your argument for an improving housing market. Name me one respected economist that says we have turned the corner in the housing market. Keep grasping as straws. I see you as the type who thinks a "free beer tomorrow" sign at the bar actually means something.
R T M posted 07-30-2009 11:14 PM ET (US)
Like I wrote above the naysayers are panicking. Thing is, things were rolling along swell until the change of administration, then it all fell apart. And they will still be complaining in 2011 when they are taking their loot to the bank. Wish you guys would stop makin stuff up.
rich/Binkie
R T M posted 07-30-2009 11:31 PM ET (US)
Happy,
(I bought a 60K sweeper truck for my parking lot sweeping business but have had customers cut back instead of wanting more service. I'm no financial wizard.)
I guess not. Haven`t you heard the Federal government is taking over the sweeping business, using Federal prisoners with brooms. More billions will go into the federal coffers to be used to feed and house people who won`t work! Yea.
rich/Binkie
Jkcam posted 07-31-2009 05:07 AM ET (US)
Kid yourself and buy into the media love affair all you want, but take this to the bank. We are in for a second and possibly worse downturn, within 12-18 months. Right now the forclosed home inventory is comprised of alot of fringe borrowers, many of whom would not have qualified for a home loan on their terms 20 years ago. Or any loan for that matter. The second wave is going to be the stable borrower who has been steadly employed and would have qualified under any model. Why, because business is so far down. Look at Whaler, how many long time employees have been laid off? Maybe they can hold out for a while longer but in the end, if they are unemployed, or underemployed, they will start to lose collateralized assets. How many people do you know that say their employer/business is down 40%? That cannont go on forever and at the same time have an upswing in the housing market.
In a true comback market, production, sales, and income of business would be first and housing would follow that. It just doesn't work the other way around.
TransAm posted 07-31-2009 08:09 AM ET (US)
Those foreclosed home sales. Just how many are putting plumbers, electricians and carpenters back to work. How many are buying lumber and carpet and drywall. How many are buying cabinets from the local cabinet-maker or appliances from the local storefronts. The list goes on for hundreds of ancillary industries connected to housing. Walk into a homw depot at 7:00 AM on a Monday...you can practically hear a pin drop.
Take away 37% of the sales attributed to foreclosures and actual sales are down 22%. That's what those numbers really tell us.
Better mix up another batch of Kool-aid Binks.
R T M posted 07-31-2009 01:15 PM ET (US)
TA,
no, foreclosed homes won`t put any trades people back to work, but once people are living in them, and there are no more, other people will have to go to other sources like builders to get a house. This ain`t rocket science, its supply and demand, that's all. Here is another article that will make the naysayers weep.
http://finance.yahoo.com/news/Recession-eases-GDP-dip-apf-3585281606. html?x=0
It`s a good time to stock up on residential lots at bargain prices, and get ready for the next surge. Some of you must be in your twenties and have never seen bad times before. If you have been in the construction business for a while you would know what I mean. Remember when mortgage rates were 15% in the early 80's, and no one could afford a mortgage. Construction just stopped, just like now. So, do something else. Its a good time to buy some low priced homes and turn them into rentals. The rental business is good. In good times and bad times professional tenants(folks who have no hope or desire to own a home) have to have a place to live, and now there are even more of them due to other folks forced out by foreclosure. The secret to that business is you have to pay cash, and have the knowledge and skills do do all the repairs and remodeling yourself, but if you don`t mind hard work, its a good living. I got into it during the recession in the early '80's and am still doing it. I got out of the rat race of home building a few years ago. I would rather work on boats and collect rent.
rich/Binkie

TransAm posted 07-31-2009 10:57 PM ET (US)
Wow, thanks for that advice old and wise ex-homebuilder who knows all about the economy and how to make it big. I'm gonna cash in my 401K for some rental property. You very smart man.
R T M posted 08-01-2009 03:36 PM ET (US)
TA
Sorry, my message was not meant for folks like yourself, living hand to mouth or with a small pittance tied up long term in 3% funds. You`ll never get out of debt buying a 40k boat for $500 down and a 20 year payoff, or leasing a BMW for $1800, monthly payments.
More good news for solvent folks
http://finance.yahoo.com/news/ Welcome-to-the-bottom-Housing-apf-1993519878.html?x=0&.v=1
rich/Binkie
TransAm posted 08-01-2009 07:37 PM ET (US)
88' Temptation @ $40K boat.....?....I'll sell it to you for $30K right now, deal. I'll also sell you my 2003 Avalanche for $1,500 a month for 3 years too. A complete boat, trailer, tow vehicle package. I'll deliver to your doorstep as well.
mobey posted 08-02-2009 03:01 PM ET (US)
My prediction is: for 2009 and 2010 Total received U.S. federal and state government tax revenues will be ALARMINGLY less than anticipated and required to fund OUR government, and OUR government funded programs- as currently run and planned. My prediction.
R T M posted 08-02-2009 03:41 PM ET (US)
If so, and in all probability true, we can just borrow more funds from the Chinese, like we have been doing for years. If the wars were ended as promised, there would be plenty of funding for everything else. So much for change in that department.
rich/Binkie
Sal A posted 08-02-2009 08:46 PM ET (US)
I am short. This rally is sucking every one back in. Don't believe me. Don't believe tv. Just be careful.
Tohsgib posted 08-03-2009 11:11 AM ET (US)
Sal I would cover if I was you. Dorsey Wright and a bunch of technicals point to 11k. Be carefull!
Sal A posted 08-03-2009 11:37 AM ET (US)
I am hurting for sure now Nick. You may be right.
Blackduck posted 08-03-2009 12:58 PM ET (US)
This rally seems to be based on a lot of optimism over some "green shoots", a lot of which are withering, and excitement over company's whose earnings look better, but only because they have cut their cost down to nothing. No real growth anywhere.

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Author	Topic: Brunswick Stock Prices
Dick E	posted 07-30-2009 04:26 PM ET (US) Brunswick stock up over 25 % Largely from improved cash flow. When you reduce inventory you generate cash. It does not mean things are better.Laying off people stinks. Her an article from the Chicago Tribune. Jul. 30--Brunswick Corp. (BC) stock soared more than 25 percent Thursday, though the company reported a sizable net loss for the second quarter on sharply lower revenue. The Lake Forest-based recreational products manufacturer posted a net loss of $163.7 million, or $1.85 per share, compared with a net loss of $6 million, or 7 cents per share, a year earlier. The most recent results included 45 cents per share in one-time charges. Revenue fell 52 percent, to $718.3 million from $1.48 billion, with marine sales dropping 56 percent. Investors were likely responding to Brunswick's improved cash position during the quarter, which improves its chances of riding out the current downturn without being forced to seek bankruptcy protection. Brunswick held $461.2 million in cash at quarter's end, up from $317.5 million at the end of 2008. McCoy credited the improved liquidity to the company's decision to lay off workers and reduce production output as sales of its boats, bowling and gym equipment dropped. "We are capably managing through these issues and believe they will provide opportunities for those like us that emerge from this downturn with a healthy position," Brunswick Chief Executive Dustan McCoy told investors during the company's quarterly earnings call. The maker of boating, billiard and bowling products said it had cash on hand at the quarter's end of $461.2 million, up from the year-end balance of $317.5 million. "We continue to successfully manage our operations for cash and maintain excellent levels of liquidity," McCoy said. Shares were up $1.34 cents, or 25.9 percent, to $6.50 in midday trading on the New York Stock Exchange. To see more of the Chicago Tribune, or to subscribe to the newspaper, go to http://www.chicagotribune.com. Copyright (c) 2009, Chicago Tribune Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
hauptjm	posted 07-30-2009 05:56 PM ET (US) Cash keeps the debt holders happy as well. I say good for them. It's better to do whatever necessary to keep the company alive so "when" things do improve, there is a place for those workers to return to versus not. I hope they hang in there!
R T M	posted 07-30-2009 06:25 PM ET (US) Home sales are up too, We are at the bottom, the turnaround has started. this is bad news for the naysayers. rich/Binkie
TransAm	posted 07-30-2009 06:33 PM ET (US) Home sales might be up in your trailer park Binks, but not many other places. Regarding the sales figures for Brunswick, I heard today on the radio sales were off 72%.
WT	posted 07-30-2009 08:08 PM ET (US) I believe that we are only in the top of the 4th inning. Brunswick has to cut overhead and try to survive. All you have to do is ask the business owners you do business with. Ask your local grocer, dry cleaner, restaurants, golf course, car wash, barber, clothing store,tackle shops, boat dealer, car dealer, etc. if they are doing very well..... The big drop in housing is only beginning for homes priced over $800,000. I predict that it will be very common to see foreclosed homes that originally sold for $2M that will re-sell at $700,000 or less. Good luck to all, Warren
TransAm	posted 07-30-2009 08:46 PM ET (US) I'm not sure how many $2M homes you will see selling for $700K or less. That would likely require the bank to sell the house extremely short and take a $1.0M or more haircut. Assuming folks who allow a $2M home to go to foreclosure leveraged the property at 80% or more, that means a loan of $1.6M or so. So, unless mandated to do so, a bank would not ordinarily sell a foreclosed home with that kind of write down. There will obviously be some exceptions such as the property was grossly over-valued to begin with, but generally speaking, home values will not drop 65%.
R T M	posted 07-30-2009 08:59 PM ET (US) http://www.tampabay.com/news/business/realestate/article1020980.ece rich/Binkie
hauptjm	posted 07-30-2009 09:46 PM ET (US) I have a home in my neighborhood that sold for $1.3 million three years ago. The owner, an executive with one of the local refiners, has been transferred. Initially, it went on the market for $1.5 million, it now (six months later) is offered for $1.0 million. I suspect it won't move until it reaches the $750k to $850k range. I sure hope I'm wrong!
TransAm	posted 07-30-2009 09:48 PM ET (US) Don't just read the headlines Bink. Here is a key indicator from that article. quote: Home Encounter said distressed sales — both foreclosures and preforeclosures — constituted 37 percent of sales in June. If sales are artificially high for one month, because of cheap inventory, that hardly constitutes a housing turnaround. Another interesting note from the article quote: Nevertheless, the sheer volume of cut-rate distressed properties is driving the sales turnaround. This is not a market turn around; simply some bottom feeders taking advantage of distressed sales. Do some research on new home starts.
R T M	posted 07-30-2009 10:06 PM ET (US) Read between the lines, At least the foreclosed homes are starting to be used up. Nothing good will happen until they are gone. Who will have a new home built when they can get a foreclosure for real cheap. When they are gone, prices will increase and folks will start thinking new. If your new in the business you might think construction is always gangbusters, not so. Save your money and go fishing. rich/Binkie
HAPPYJIM	posted 07-30-2009 10:21 PM ET (US) I go by 3 small mom & pop boat sale yards almost every day. The same new boats have been sitting all year long. It doesn't look like anything is moving in any of these yards. I live in an area where lots of military and government jobs are plentiful and money is there but it sure looks like people are holding out for some reason. I am in need of a 2500 square foot metal building with a lean to for storage but I'm getting very skeptical about the next few years. I bought a 60K sweeper truck for my parking lot sweeping business but have had customers cut back instead of wanting more services. The government is spending money at an alarming rate. I'm no financial wizard but have been in business almost 30 years and know you can't spend money that you don't have.....at least not very long. In just 7 short months the only thing that I can see is More taxes, more debt, more welfare, more regulation, more wasteful spending and a skyrocketing national debt that our great grandchildren will be paying for. On top of that, it looks like national health care is breaking the doors down to become another free service for me to pay for. Things just don't look as rosey as they did a year ago. I hope things make a turn soon but it just doesn't make much sense to me to keep spending money that we don't have to make the economy better.
TransAm	posted 07-30-2009 10:27 PM ET (US) I didn't hear the news that banks stopped foreclosing, or that foreclosure rates were in such a decline. Foreclosures create unwanted sales and this will continue for some time. Don't try and prop your boy's policies up using foreclosure sales as your argument for an improving housing market. Name me one respected economist that says we have turned the corner in the housing market. Keep grasping as straws. I see you as the type who thinks a "free beer tomorrow" sign at the bar actually means something.
R T M	posted 07-30-2009 11:14 PM ET (US) Like I wrote above the naysayers are panicking. Thing is, things were rolling along swell until the change of administration, then it all fell apart. And they will still be complaining in 2011 when they are taking their loot to the bank. Wish you guys would stop makin stuff up. rich/Binkie
R T M	posted 07-30-2009 11:31 PM ET (US) Happy, (I bought a 60K sweeper truck for my parking lot sweeping business but have had customers cut back instead of wanting more service. I'm no financial wizard.) I guess not. Haven`t you heard the Federal government is taking over the sweeping business, using Federal prisoners with brooms. More billions will go into the federal coffers to be used to feed and house people who won`t work! Yea. rich/Binkie
Jkcam	posted 07-31-2009 05:07 AM ET (US) Kid yourself and buy into the media love affair all you want, but take this to the bank. We are in for a second and possibly worse downturn, within 12-18 months. Right now the forclosed home inventory is comprised of alot of fringe borrowers, many of whom would not have qualified for a home loan on their terms 20 years ago. Or any loan for that matter. The second wave is going to be the stable borrower who has been steadly employed and would have qualified under any model. Why, because business is so far down. Look at Whaler, how many long time employees have been laid off? Maybe they can hold out for a while longer but in the end, if they are unemployed, or underemployed, they will start to lose collateralized assets. How many people do you know that say their employer/business is down 40%? That cannont go on forever and at the same time have an upswing in the housing market. In a true comback market, production, sales, and income of business would be first and housing would follow that. It just doesn't work the other way around.
TransAm	posted 07-31-2009 08:09 AM ET (US) Those foreclosed home sales. Just how many are putting plumbers, electricians and carpenters back to work. How many are buying lumber and carpet and drywall. How many are buying cabinets from the local cabinet-maker or appliances from the local storefronts. The list goes on for hundreds of ancillary industries connected to housing. Walk into a homw depot at 7:00 AM on a Monday...you can practically hear a pin drop. Take away 37% of the sales attributed to foreclosures and actual sales are down 22%. That's what those numbers really tell us. Better mix up another batch of Kool-aid Binks.
R T M	posted 07-31-2009 01:15 PM ET (US) TA, no, foreclosed homes won`t put any trades people back to work, but once people are living in them, and there are no more, other people will have to go to other sources like builders to get a house. This ain`t rocket science, its supply and demand, that's all. Here is another article that will make the naysayers weep. http://finance.yahoo.com/news/Recession-eases-GDP-dip-apf-3585281606. html?x=0 It`s a good time to stock up on residential lots at bargain prices, and get ready for the next surge. Some of you must be in your twenties and have never seen bad times before. If you have been in the construction business for a while you would know what I mean. Remember when mortgage rates were 15% in the early 80's, and no one could afford a mortgage. Construction just stopped, just like now. So, do something else. Its a good time to buy some low priced homes and turn them into rentals. The rental business is good. In good times and bad times professional tenants(folks who have no hope or desire to own a home) have to have a place to live, and now there are even more of them due to other folks forced out by foreclosure. The secret to that business is you have to pay cash, and have the knowledge and skills do do all the repairs and remodeling yourself, but if you don`t mind hard work, its a good living. I got into it during the recession in the early '80's and am still doing it. I got out of the rat race of home building a few years ago. I would rather work on boats and collect rent. rich/Binkie
TransAm	posted 07-31-2009 10:57 PM ET (US) Wow, thanks for that advice old and wise ex-homebuilder who knows all about the economy and how to make it big. I'm gonna cash in my 401K for some rental property. You very smart man.
R T M	posted 08-01-2009 03:36 PM ET (US) TA Sorry, my message was not meant for folks like yourself, living hand to mouth or with a small pittance tied up long term in 3% funds. You`ll never get out of debt buying a 40k boat for $500 down and a 20 year payoff, or leasing a BMW for $1800, monthly payments. More good news for solvent folks http://finance.yahoo.com/news/ Welcome-to-the-bottom-Housing-apf-1993519878.html?x=0&.v=1 rich/Binkie
TransAm	posted 08-01-2009 07:37 PM ET (US) 88' Temptation @ $40K boat.....?....I'll sell it to you for $30K right now, deal. I'll also sell you my 2003 Avalanche for $1,500 a month for 3 years too. A complete boat, trailer, tow vehicle package. I'll deliver to your doorstep as well.
mobey	posted 08-02-2009 03:01 PM ET (US) My prediction is: for 2009 and 2010 Total received U.S. federal and state government tax revenues will be ALARMINGLY less than anticipated and required to fund OUR government, and OUR government funded programs- as currently run and planned. My prediction.
R T M	posted 08-02-2009 03:41 PM ET (US) If so, and in all probability true, we can just borrow more funds from the Chinese, like we have been doing for years. If the wars were ended as promised, there would be plenty of funding for everything else. So much for change in that department. rich/Binkie
Sal A	posted 08-02-2009 08:46 PM ET (US) I am short. This rally is sucking every one back in. Don't believe me. Don't believe tv. Just be careful.
Tohsgib	posted 08-03-2009 11:11 AM ET (US) Sal I would cover if I was you. Dorsey Wright and a bunch of technicals point to 11k. Be carefull!
Sal A	posted 08-03-2009 11:37 AM ET (US) I am hurting for sure now Nick. You may be right.
Blackduck	posted 08-03-2009 12:58 PM ET (US) This rally seems to be based on a lot of optimism over some "green shoots", a lot of which are withering, and excitement over company's whose earnings look better, but only because they have cut their cost down to nothing. No real growth anywhere.