Brunswick reports sinking first quarter results

Lake Forest-based Brunswick Corp. reported its first quarter sales of $734.7 million were down 45 percent versus 2008.

The drop was primarily the result of marine sales that dropped by 52 percent from several year-ago levels. The company reported a net loss of $184.2 million, or $2.08 per share, which includes $39.6 million, or 45 cents per diluted share, of restructuring charges.

The company expects to generate additional 2009 cost reductions of approximately $40 million, aggregating to savings of $240 million for the year versus the $200 million of savings previously announced.

“Our businesses continued to be under pressure from a variety of harsh economic factors that affected both domestic and international demand for our products, especially in our recreational marine markets,” said Brunswick’s Chairman and Chief Executive Officer Dustan E. McCoy.

“The year began as expected with the continuation of unprecedented low levels of demand experienced in the second half of 2008, especially during the fourth quarter. Retail demand for marine products was impacted in the first quarter of 2009 by declining consumer confidence and the tightening of consumer credit terms by national lenders. As our dealers work through this difficult economic climate, we continue to reduce our wholesale shipments to reduce the number of boats and engines on their showroom floors. Additionally, we experienced lower equipment orders from our fitness and bowling products customers,” McCoy said.