Brunswick posts loss on charges, sinking sales

Brunswick Corp., the maker of Boston Whaler fishing boats and Sea Ray yachts, posted its second straight quarterly loss as higher unemployment and fuel costs eroded demand and the company recorded goodwill and impairment charges.

The third-quarter loss was $591.4 million, or $6.70 a share, compared with profit of $1.9 million, or 2 cents, in the same period a year earlier, the company said today in a statement. Excluding some charges, the loss was 33 cents a share. Ten analysts surveyed by Bloomberg had estimated a loss, excluding some costs, of 45 cents a share.

Lake Forest-based Brunswick makes equipment for fitness, bowling and billiards in addition to sport boats and 60-foot yachts and has seen sales decline for nine of the last 10 quarters. Revenue fell 22 percent to $1.04 billion, the biggest drop since at least 1999. Eight analysts surveyed by Bloomberg had estimated $1.17 billion, on average.

"The marine market in the United States is becoming increasingly challenging due to difficult economic conditions, financial market upheaval and tightening credit availability, on top of the continuing weak housing market," Chief Executive Officer Dustan McCoy said in the statement.

Earlier this month, Brunswick said it was accelerating the closing of four factories and eliminating 1,450 jobs as it seeks to eliminate $300 million in fixed costs by the end of next year. The company also said then that it may report a loss for 2008.

Goodwill writedowns, trade-name impairment costs and restructuring and tax charges totaled $6.37 a share, the company said.