"Shortwave Sportfishing" wrote in message
...

http://tinyurl.com/rc4vf

"Our second quarter results are in line with our expectations," said
Brunswick Chairman and Chief Executive Officer Dustan E. McCoy.
"Throughout the key second quarter selling season for 2006-model-year
marine products, however, we have experienced significant declines in
retail demand, which has resulted in an increase in pipeline
inventories. As we now enter the off- season, we can't rely solely on
retail demand to rebalance the pipeline. So, we will be reducing
further our production levels, leading to a lowering of our earnings
estimate for the second half of the year. This is primarily due to
reduced sales and the impact of fixed cost absorption from production
cuts needed to adjust pipeline inventories. Although this will result
in reduced margins, we believe that managing pipeline inventories is
critical in a cyclical, as well as a seasonal, industry."

Translation: "Oh oh - things ain't lookin' so good." :)

Here's my take:
Marine manufacturers took advantage of a strong economy and cheap money over
the past 3 or 4 years, and increased their prices on new boats an awful lot.
But now gas prices and higher interest rates have made enough people think
twice about a new boat purchase, and folks just aren't jumping at 30' twin
outboard boats that cost $200,000+ anymore. The other factor hurting them
is that people don't have a bunch of untapped equity in their homes anymore,
so they can't make a boat payment "disappear" in their home mortgage by
simply refinancing.