Sharp decline in Bruswick Stock
 

Shares of Brunswick Corp. traded sharply lower Tuesday after the maker of
marine engines, pleasure boats and other leisure goods cut its earnings
targets, blaming the combined effects of higher fuel prices, lower consumer
confidence and Hurricane Katrina.

Brunswick (BC), based in Lake Forest, Ill., saw its stock fall 10.9%, or $
4.61, to $37.89 in recent trading.

Brunswick said that retail demand for its marine products remains strong,
but that as it moves into the off-season, demand is driven primarily by
wholesale buyers.

"We are concerned that if high fuel prices, the drop in consumer confidence
and Katrina lead to slower overall economic conditions, then wholesale
demand for marine products could be affected," said George Buckley, chairman
and chief executive, in a statement.

http://tinyurl.com/cj2ba

*JimH* wrote:
Shares of Brunswick Corp. traded sharply lower Tuesday after the maker of
marine engines, pleasure boats and other leisure goods cut its earnings
targets, blaming the combined effects of higher fuel prices, lower consumer
confidence and Hurricane Katrina.

Brunswick (BC), based in Lake Forest, Ill., saw its stock fall 10.9%, or $
4.61, to $37.89 in recent trading.

Brunswick said that retail demand for its marine products remains strong,
but that as it moves into the off-season, demand is driven primarily by
wholesale buyers.

"We are concerned that if high fuel prices, the drop in consumer confidence
and Katrina lead to slower overall economic conditions, then wholesale
demand for marine products could be affected," said George Buckley, chairman
and chief executive, in a statement.

http://tinyurl.com/cj2ba


Most boat builders will be impacted by higher fuel prices. The only
likely exceptions are the firms specializing in boats priced over a
couple of million dollars or so- people paying that much for a boat
could spend $6 a gallon for diesel and not even feel it.

The high gas prices will do more to deter new boaters from taking up
the pastime than they will drive away people already enjoying boating.
Existing boaters will still boat, but take a few less weekend cruises
per year, stay a little closer to home, and start to think about
running more often at the most efficient speeds. Companies like Genmar
and Brunswick bank heavily on sales to entry level boaters, and until
the public gets over the shock of current fuel pricing their sales may
well be down.

wrote in message
ups.com...

*JimH* wrote:
Shares of Brunswick Corp. traded sharply lower Tuesday after the maker of
marine engines, pleasure boats and other leisure goods cut its earnings
targets, blaming the combined effects of higher fuel prices, lower
consumer
confidence and Hurricane Katrina.

Brunswick (BC), based in Lake Forest, Ill., saw its stock fall 10.9%, or
$
4.61, to $37.89 in recent trading.

Brunswick said that retail demand for its marine products remains strong,
but that as it moves into the off-season, demand is driven primarily by
wholesale buyers.

"We are concerned that if high fuel prices, the drop in consumer
confidence
and Katrina lead to slower overall economic conditions, then wholesale
demand for marine products could be affected," said George Buckley,
chairman
and chief executive, in a statement.

http://tinyurl.com/cj2ba


Most boat builders will be impacted by higher fuel prices. The only
likely exceptions are the firms specializing in boats priced over a
couple of million dollars or so- people paying that much for a boat
could spend $6 a gallon for diesel and not even feel it.

The high gas prices will do more to deter new boaters from taking up
the pastime than they will drive away people already enjoying boating.
Existing boaters will still boat, but take a few less weekend cruises
per year, stay a little closer to home, and start to think about
running more often at the most efficient speeds. Companies like Genmar
and Brunswick bank heavily on sales to entry level boaters, and until
the public gets over the shock of current fuel pricing their sales may
well be down.


Were mid to larger boat sales down during your recent boat show Chuck? I
can see folks doing some downsizing (or buying more trawlers insert
smiley) because of the fuel pricing.

Rita will certainly not help with fuel pricing....or the pricing of new
boats (or new commodities in general for that matter)

*JimH* wrote:
wrote in message
ups.com...

*JimH* wrote:
Shares of Brunswick Corp. traded sharply lower Tuesday after the maker of
marine engines, pleasure boats and other leisure goods cut its earnings
targets, blaming the combined effects of higher fuel prices, lower
consumer
confidence and Hurricane Katrina.

Brunswick (BC), based in Lake Forest, Ill., saw its stock fall 10.9%, or
$
4.61, to $37.89 in recent trading.

Brunswick said that retail demand for its marine products remains strong,
but that as it moves into the off-season, demand is driven primarily by
wholesale buyers.

"We are concerned that if high fuel prices, the drop in consumer
confidence
and Katrina lead to slower overall economic conditions, then wholesale
demand for marine products could be affected," said George Buckley,
chairman
and chief executive, in a statement.

http://tinyurl.com/cj2ba


Most boat builders will be impacted by higher fuel prices. The only
likely exceptions are the firms specializing in boats priced over a
couple of million dollars or so- people paying that much for a boat
could spend $6 a gallon for diesel and not even feel it.

The high gas prices will do more to deter new boaters from taking up
the pastime than they will drive away people already enjoying boating.
Existing boaters will still boat, but take a few less weekend cruises
per year, stay a little closer to home, and start to think about
running more often at the most efficient speeds. Companies like Genmar
and Brunswick bank heavily on sales to entry level boaters, and until
the public gets over the shock of current fuel pricing their sales may
well be down.


Were mid to larger boat sales down during your recent boat show Chuck? I
can see folks doing some downsizing (or buying more trawlers insert
smiley) because of the fuel pricing.

Rita will certainly not help with fuel pricing....or the pricing of new
boats (or new commodities in general for that matter)


Hard to know how sales were, overall, for a specific weekend. One can
ask around, but as in most competitive business environments the first
story teller doesn't stand a chance.

When the quarterlies come out from NMTA that will be a better
barometer.

New boats are now so ridiculously expensive- (you don't get much
anymore for
$350-400k) that the class of people actually able to afford one
comfortably is somewhat insulated from fuel costs. After all, if the
price of diesel goes from $3000 to $5000 for a summer and boat
payments/moorage/insurance are running a combined $4000 per month, that
extra $2000 spread out over 4-5 months isn't all that big a deal.

The guys hurt worse are the wage earners already strapped trying to pay
for $30-100k boats. A lot of those are older boats with twin big block
gassers- and a high speed run can cost almost $200 an hour with fuel at
current levels.

wrote in message
ups.com...

*JimH* wrote:
wrote in message
ups.com...

*JimH* wrote:
Shares of Brunswick Corp. traded sharply lower Tuesday after the maker
of
marine engines, pleasure boats and other leisure goods cut its
earnings
targets, blaming the combined effects of higher fuel prices, lower
consumer
confidence and Hurricane Katrina.

Brunswick (BC), based in Lake Forest, Ill., saw its stock fall 10.9%,
or
$
4.61, to $37.89 in recent trading.

Brunswick said that retail demand for its marine products remains
strong,
but that as it moves into the off-season, demand is driven primarily
by
wholesale buyers.

"We are concerned that if high fuel prices, the drop in consumer
confidence
and Katrina lead to slower overall economic conditions, then wholesale
demand for marine products could be affected," said George Buckley,
chairman
and chief executive, in a statement.

http://tinyurl.com/cj2ba


Most boat builders will be impacted by higher fuel prices. The only
likely exceptions are the firms specializing in boats priced over a
couple of million dollars or so- people paying that much for a boat
could spend $6 a gallon for diesel and not even feel it.

The high gas prices will do more to deter new boaters from taking up
the pastime than they will drive away people already enjoying boating.
Existing boaters will still boat, but take a few less weekend cruises
per year, stay a little closer to home, and start to think about
running more often at the most efficient speeds. Companies like Genmar
and Brunswick bank heavily on sales to entry level boaters, and until
the public gets over the shock of current fuel pricing their sales may
well be down.


Were mid to larger boat sales down during your recent boat show Chuck? I
can see folks doing some downsizing (or buying more trawlers insert
smiley) because of the fuel pricing.

Rita will certainly not help with fuel pricing....or the pricing of new
boats (or new commodities in general for that matter)


Hard to know how sales were, overall, for a specific weekend. One can
ask around, but as in most competitive business environments the first
story teller doesn't stand a chance.

When the quarterlies come out from NMTA that will be a better
barometer.

New boats are now so ridiculously expensive- (you don't get much
anymore for
$350-400k) that the class of people actually able to afford one
comfortably is somewhat insulated from fuel costs. After all, if the
price of diesel goes from $3000 to $5000 for a summer and boat
payments/moorage/insurance are running a combined $4000 per month, that
extra $2000 spread out over 4-5 months isn't all that big a deal.

The guys hurt worse are the wage earners already strapped trying to pay
for $30-100k boats. A lot of those are older boats with twin big block
gassers- and a high speed run can cost almost $200 an hour with fuel at
current levels.


Indeed, new boats are indeed very expensive. Used boats are also
expensive, as is boating in general. But boating is a luxury and not a
necessity Chuck. ;-)

I feel sorry for the folks who cannot afford to feed, clothe and shelter
their families. I do not feel sorry for the folks *struggling* to make the
payments on their $100,000 boats.

"Shortwave Sportfishing" wrote in message
...
On 23 Sep 2005 21:00:59 -0700, wrote:

The guys hurt worse are the wage earners already strapped trying to pay
for $30-100k boats. A lot of those are older boats with twin big block
gassers- and a high speed run can cost almost $200 an hour with fuel at
current levels.

The answer is E-TEC. :)

Buy a lot of gas for that $16k.

"Shortwave Sportfishing" wrote in message
...
On Mon, 26 Sep 2005 05:26:36 GMT, "Bill McKee"
wrote:


"Shortwave Sportfishing" wrote in message
. ..
On 23 Sep 2005 21:00:59 -0700, wrote:

The guys hurt worse are the wage earners already strapped trying to pay
for $30-100k boats. A lot of those are older boats with twin big block
gassers- and a high speed run can cost almost $200 an hour with fuel at
current levels.

The answer is E-TEC. :)

Buy a lot of gas for that $16k.

But even less gas when using them.

But with all the intricacies of the DFI 2 strokes and the oiling dangers for
the lower end, I am still very leery of them. Add the Ficht debacle, I will
stay with the 4 strokes. My Yamaha T-8 trolls with almost no fuel usage.
Ran the tank out with the big motor last year on Lake Oroville. Ran almost
2 miles on the fuel in the T-8 lines and carb. Last 2 miles on the electric
trolling motor. Since then I have swapped the main engine to a 330 hp 350
CID MPI motor, so make sure it does not run out of fuel. High pressure pump
is expensive, and they fail soon after running dry. Have not figured out
fuel burn on it yet.