Brunswick to close four boat plants, layoff 2,700
Seeks to trim $300M in costs
June 27, 2008
NEWS-SUN STAFF REPORT
LAKE FOREST -- Brunswick Corp. said Thursday the slumping marine market is forcing it to reduce costs by $300 million, including the closing of four boat manufacturing plants and laying off 2,700 workers.
The company said it plans to have 17 or fewer boat plants by the end of 2009, compared with the 29 it had in 2007, requiring the closure of four plants in addition to eight plant closures already completed or announced.
Brunswick said officials notified employees that 1,000 hourly and salaried workers at certain marine plants would be laid off. Further layoffs approximately 1,000 hourly and 700 salaried employees across the company's marine business units and staff functions also are being contemplated as additional plant closures and consolidations, and other cost-cutting measures are completed.
"Retail unit sales of power boats in the United States have been in decline since late 2005; however, the rate of decline has been accelerating," Dustan McCoy, Brunswick chairman and chief operating officer, said. "Industry retail unit sales were down 13 percent in the fourth quarter of 2007 and down 21 percent in the first quarter of 2008 compared with the respective year-ago quarters."
Total unit sales of power boats in the U.S. in 2007 were at their lowest in more than 40 years, he added.
The company said it also will continue its efforts to reduce the complexity of its operations, including reducing the number of models and option packages, and assessing the continued participation in certain market segments.
McCoy said Lake Forest-based Brunswick has implemented cost savings initiatives over the years to reduce its manufacturing footprint and leverage purchases of components and materials.
"While these efforts have resulted in significant savings, the realities of the current U.S. marine market have caused us to step up the pace and magnitude of these efforts," he said, noting an uncertain economy is eroding consumer confidence and reducing purchases of discretionary items such as boats, billiard tables and fitness equipment.
June 27, 2008
NEWS-SUN STAFF REPORT
LAKE FOREST -- Brunswick Corp. said Thursday the slumping marine market is forcing it to reduce costs by $300 million, including the closing of four boat manufacturing plants and laying off 2,700 workers.
The company said it plans to have 17 or fewer boat plants by the end of 2009, compared with the 29 it had in 2007, requiring the closure of four plants in addition to eight plant closures already completed or announced.
Brunswick said officials notified employees that 1,000 hourly and salaried workers at certain marine plants would be laid off. Further layoffs approximately 1,000 hourly and 700 salaried employees across the company's marine business units and staff functions also are being contemplated as additional plant closures and consolidations, and other cost-cutting measures are completed.
"Retail unit sales of power boats in the United States have been in decline since late 2005; however, the rate of decline has been accelerating," Dustan McCoy, Brunswick chairman and chief operating officer, said. "Industry retail unit sales were down 13 percent in the fourth quarter of 2007 and down 21 percent in the first quarter of 2008 compared with the respective year-ago quarters."
Total unit sales of power boats in the U.S. in 2007 were at their lowest in more than 40 years, he added.
The company said it also will continue its efforts to reduce the complexity of its operations, including reducing the number of models and option packages, and assessing the continued participation in certain market segments.
McCoy said Lake Forest-based Brunswick has implemented cost savings initiatives over the years to reduce its manufacturing footprint and leverage purchases of components and materials.
"While these efforts have resulted in significant savings, the realities of the current U.S. marine market have caused us to step up the pace and magnitude of these efforts," he said, noting an uncertain economy is eroding consumer confidence and reducing purchases of discretionary items such as boats, billiard tables and fitness equipment.
Labels: Brunswick Corp, Illinois, Lake Forest, layoffs
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