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Message Boards Settings Brunswick Corporation (BC) - Quote Info
Numerous Fundamentals...Perfect Storm     25-Oct-09 04:55 pm    
Unemployment 10%; what is partial unemployment 25%? Who is going to purchase $100,000+ SeaRays?

Huge New and Used boat inventories....what retail is out there is heavily discounted.

How many boat dealers will be out of business in the next 12 months and what does this do to future sales/inventory and how many repurchases will BC need to make?

Demand due to fuel price, what is the real demand with $3.00/gal marine fuel?

Tight credit both in retail and wholesale, GE Capital has taken 2% margin up front (only fund 98% of the cost of a boat), as well as increased Floorplan rates. These changes alone take 2 - 3% off of BC boat and engine margins.

BC and Mercury both have pricing increases in Model Years 2010 and 2011 planned. Many automakers are actually lowering 2010 pricing per models.

BC has lost over $1 billion in book value in the past 15 months and the once strong balance sheet will likely show negative tangible net assets this quarter. Cash has increased due to reduced Working Capital, but this is a temporary fix. 2010 planned loss will start coming from cash.......

Future of boating producers....very shakey.......


Sentiment : Strong Sell
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happyoutdoo...


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Numerous Fundamentals...Perfect Storm
happyoutdoo... (1 Rating) 25-Oct-09 04:55 pm  
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Brunswick Corp. (BC)

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