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10-11-2008, 10:03 AM
http://canadianpress.google.com/article/ALeqM5hdou9_ru_bvWOaqd54wpUquJiHMw
U.S. boat maker Brunswick cuts 1,400 jobs; shuts four more plants
1 day ago
CHICAGO — Beleaguered U.S. boat maker Brunswick Corp. said it will cut 1,400 more jobs as the company shuts four plants and furloughs workers at three more - the latest round of layoffs as boat sales slump to near-record levels.
The announcement, which sent the manufacturer's stock to an 18-year low - came four months after the suburban Chicago company said it would eliminate 1,000 jobs because of the falling demand for recreational boats amid a poor economic environment.
Counting Thursday's announcement - prompted by worsening financial conditions, including rising oil prices and frozen credit markets - the company has slashed more than a third of its marine work force since the beginning of the year.
"These actions impact not only thousands of people in our company but their families as well, and those are painful and life-changing for many," said Brunswick chairman and chief executive officer Dustan McCoy. "Our actions around reducing costs position us to be profitable in a smaller marine market, and to prosper when the economy and the marine markets improve."
In July and August, industry-wide sales of fibreglass boats fell 40 per cent while sales of aluminum boats dropped 21 per cent, the company said, adding that September declines were likely to be worse.
"Our judgment is that retail industry demand in September is likely to be down even further, based on the turmoil and uncertainty arising from rescue packages to congressional bailouts, availability or lack thereof, of credit, and consumer sentiment," McCoy said.
Brunswick plans to permanently close plants in Pipestone, Minn.,Roseburg, Ore., and Arlington, Wash., while monthballing another facility in Navassa, N.C. The closures - the latest in a series since 2006 - will be completed by the first quarter of 2009. When the cuts are complete, the company will have closed more than 40 per cent of the boat plants it operated in 2006.
Meanwhile, employees at three other facilities near Knoxville, Tenn. will be furloughed beginning Oct. 27 through the end of the year.
Officials said the series of cuts will save $300 million by the end of 2009, and may prevent the company from making a profit this year.
Meanwhile, Brunswick said it expects to record two non-cash impairment charges totalling about $496 million before taxes during the third quarter.
Brunswick shares fell $1.88, or 18.8 per cent, to close at $8.12 after falling to $7.51 earlier in the session.
U.S. boat maker Brunswick cuts 1,400 jobs; shuts four more plants
1 day ago
CHICAGO — Beleaguered U.S. boat maker Brunswick Corp. said it will cut 1,400 more jobs as the company shuts four plants and furloughs workers at three more - the latest round of layoffs as boat sales slump to near-record levels.
The announcement, which sent the manufacturer's stock to an 18-year low - came four months after the suburban Chicago company said it would eliminate 1,000 jobs because of the falling demand for recreational boats amid a poor economic environment.
Counting Thursday's announcement - prompted by worsening financial conditions, including rising oil prices and frozen credit markets - the company has slashed more than a third of its marine work force since the beginning of the year.
"These actions impact not only thousands of people in our company but their families as well, and those are painful and life-changing for many," said Brunswick chairman and chief executive officer Dustan McCoy. "Our actions around reducing costs position us to be profitable in a smaller marine market, and to prosper when the economy and the marine markets improve."
In July and August, industry-wide sales of fibreglass boats fell 40 per cent while sales of aluminum boats dropped 21 per cent, the company said, adding that September declines were likely to be worse.
"Our judgment is that retail industry demand in September is likely to be down even further, based on the turmoil and uncertainty arising from rescue packages to congressional bailouts, availability or lack thereof, of credit, and consumer sentiment," McCoy said.
Brunswick plans to permanently close plants in Pipestone, Minn.,Roseburg, Ore., and Arlington, Wash., while monthballing another facility in Navassa, N.C. The closures - the latest in a series since 2006 - will be completed by the first quarter of 2009. When the cuts are complete, the company will have closed more than 40 per cent of the boat plants it operated in 2006.
Meanwhile, employees at three other facilities near Knoxville, Tenn. will be furloughed beginning Oct. 27 through the end of the year.
Officials said the series of cuts will save $300 million by the end of 2009, and may prevent the company from making a profit this year.
Meanwhile, Brunswick said it expects to record two non-cash impairment charges totalling about $496 million before taxes during the third quarter.
Brunswick shares fell $1.88, or 18.8 per cent, to close at $8.12 after falling to $7.51 earlier in the session.