Sales are off over at Brunswick.

There's a 34-week inventory of boats in the pipeline.

However, because the fall off in sales was less than analysts
expected, Brunswick stock is up sharply.

Only thing weirder than the boat business has to be the stock market.

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Brunswick 1Q Profits, Sales Drop
AP
LAKE FOREST, Ill. (AP) - Brunswick Corp., the world's largest maker of
recreational boats and marine engines, reported a 32 percent drop in
first-quarter earnings Thursday but the decline was less than expected
and its stock soared.

The results came on lower sales in a soft U.S. market for boat sales.
Beating expectations, however, propelled Brunswick's shares up $3.03,
or 9.9 percent, to close at $33.74 on the New York Stock Exchange.

Net earnings for the first three months of the year were $45.6
million, or 50 cents per share, down from $67.4 million, or 70 cents
per share, a year earlier.

Earnings from continuing operations amounted to $34.3 million, or 38
cents per share, down more than half from a year ago but well above
the consensus estimate of analysts surveyed by Thomson Financial of 29
cents per share.

Revenue was $1.39 billion, down 1 percent from $1.41 billion in the
first quarter of 2006, but better than the $1.34 billion expected by
analysts.

"Operating earnings were affected by lower sales, reduced fixed-cost
absorption from production cuts, costs associated with previously
announced restructuring efforts, as well as by increased discounts
offered to spur retail demand," said Chairman and Chief Executive
Dustan McCoy.

Boat pipeline inventories stood at 34 weeks of supply at the end of
the quarter compared with 32 weeks of supply a year ago, he said.

Boat segment sales declined 7 percent to $699 million in the quarter.
Excluding incremental sales from acquired businesses, segment sales
slipped 9 percent. Marine engine segment revenue rose 3 percent to
$572.6 million. Fitness segment revenue increased 8 percent to $145
million.

Brunswick said it is maintaining its full-year earnings guidance due
to its pipeline inventories, production schedules and the early
position in the marine selling season.

On the Net:

www.brunswick.com