Seas calming for Brunswick
AP
Brunswick Corp.’s main businesses are still sinking, but its strategy of stripping out costs and hoarding cash is catching the attention of investors. Wells Fargo analyst Timothy Condor boosted his rating of the company to “outperform,” saying a restructuring could save $420 million in expenses.
Brunswick is the world’s largest maker of recreational boats and is a big player in bowling, billiards and exercise equipment. Boating has been hit hard by the recession, and last week the company said overall third-quarter sales plunged 36 percent. But Brunswick’s loss narrowed to $114.3 million, or $1.29 per share, from $729.1 million, or $8.26 per share, in the year-ago period.
On a conference call last week, Chief Executive Dusty McCoy said the outlook for the industry remained uncertain. He said Brunswick’s focus now will be on patience and execution. Looking ahead, the company is now positioned to pick up domestic and international market share because it’s the industry’s low-cost manufacturer, says Condor, the Wells Fargo analyst.
Associated Press
