A presentation by Brunswick chief executive Dustan McCoy at a Raymond James investment conference this week helped ignite a fresh rally in the shares Wednesday, prodded along by Rochdale Securities analyst Hayley Wolff, who issued a note saying dealer inventories are historically low, according to a report by Chicago Breaking Business News.

“The Bayliner boat market continues along the road to recovery, particularly on the wholesale side,” Wolff wrote after a meeting with Brunswick management. “While retail sales remain in negative territory, retailers … must increase orders.”

Brunswick who manufacture Bayliner,  stock stood at $15.35 in early morning trading.

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“In the longer term, Brunswick’s strategy is to introduce the highest quality products with the most innovative technology and styling at a rate faster than its competitors; to distribute products through a model that benefits its partners – dealers and distributors – and provides world-class service to its customers; to develop and maintain low-cost manufacturing processes and to continually improve productivity and efficiency; to manufacture and distribute products globally with local and regional styling; and to attract and retain skilled and knowledgeable people,” the company said.

The report also said:

• The marine engine segment had net sales of $1.43 billion in 2009. The company believes its marine engine segment has the largest dollar sales volume of recreational marine engines in the world.

• The boat group had net sales of $615.7 million during 2009, which Brunswick says is the largest dollar sales and unit volume of pleasure boats in the world.

• The boat group’s products are sold through a global network of approximately 1,750 dealers and distributors, each of which carries one or more of Brunswick’s boat brands. Sales to the largest dealer, MarineMax, represented approximately 16 percent of boat group sales in 2009.

• Brunswick Financial Services Corp. has a 49 percent ownership interest in a joint venture, Brunswick Acceptance Company. CDF Ventures, a subsidiary of GE Capital Corp., owns the remaining 51 percent of the joint venture. Under the terms of the joint venture agreement, BAC provides secured wholesale floorplan financing to the company’s engine and boat dealers. The term of the BAC joint venture extends through June 30, 2014.

• Boat segment sales comprised approximately 23 percent of Brunswick’s non-U.S. sales in 2009. The boat group’s products are manufactured or assembled in the United States, Canada, China, Mexico, Poland, Portugal and the United Kingdom, and are sold worldwide through dealers. The Boat Group has sales offices in France, Mexico and the Netherlands.

• Research and development expenses as a percentage of net sales was 3.2 percent, 2.6 percent and 2.4 percent in 2009, 2008 and 2007, respectively.

CALL KEITH@ 575-910-6560 CELL

• Location: Acushnet, Ma.

Pipeline reduction and inventory management strategies led to significantly lower dealer inventory levels and company cash flow benefits, while having a negative impact on revenue and earnings, the company said.

Brunswick exited 2009 with more cash on hand, a stronger dealer network with lower inventory levels and “a leaner company with a significantly lower cost structure,” chairman and CEO Dustan McCoy said this morning in a conference call with analysts.

Brunswick reported net sales of $657.3 million for the quarter, down from $837.7 million in the year-ago quarter: a net loss of $124.0 million, or $1.40 per diluted share, compared with a net loss of $66.3 million, or 75 cents per diluted share for the fourth quarter of 2008.

Cash totaled $526.6 million, up from the 2008 year-end balance of $317.5 million.

At midday, Brunswick stock was trading at $11.31 per share, down from an open of $12.31 per share. Its 52-week high and low are $13.90 and $2.06 respectively.

“The factors that negatively affected our revenues and earnings in the fourth quarter of 2009, compared to the previous year, included: lower overall unit sales levels across the company; higher discounts to facilitate retail boat sales, particularly of older boat models; and a reversal of variable compensation and defined contribution retirement accruals that benefited the fourth quarter of 2008,” McCoy said.

For the year ended Dec. 31, 2009, the company reported net sales of approximately $2.77 billion, down from approximately $4.70 billion a year earlier.

For 2009 the company reported a net loss of $586.2 million, or $6.63 per diluted share, as compared with a net loss of $788.1 million, or $8.93 per diluted share, for 2008.

The boat segment, which includes 17 boat brands, reported net sales of $153.4 million for the fourth quarter of 2009, down 38 percent compared with $248.0 million in the fourth quarter of 2008. For the fourth quarter of 2009, the boat segment reported an operating loss of $131.6 million.

The marine engine segment reported net sales of $302.4 million in the fourth quarter of 2009, down 11 percent from $340.2 million in the year-ago fourth quarter. For the quarter, the marine engine segment reported an operating loss of $59.4 million, including restructuring charges of $8.2 million. This compares with an operating loss of $12.9 million in the year-ago quarter.

Boat manufacturing facilities began to ramp up production during the quarter to address inventory requirements of dealers, although production levels remained below the prior year quarter.

“Although our plans reflect a modest reduction in retail marine demand, our boat facilities will gradually increase wholesale shipments throughout the year because dealer inventories are at historically low levels,” McCoy said. “The increase in wholesale boat shipments will require us to raise production rates throughout the year.

Brunswick reduced the number of units sold to dealers by 20 percent in the fourth quarter versus last year, and by nearly 55 percent for the year, McCoy said. The quarter ended with 26 weeks of product in the pipeline, compared to 34 weeks in the previous quarter.

Also, he noted, while the demand fell, the decline was not as sharp as in previous quarters.

McCoy said the company’s dealer network is healthy, with the number of dealers down less than 1 percent at the end of 2009.

“We’re comfortable with our dealer network,” he said. “We think it’s becoming a competitive advantage.”

The boat show usually takes place over nine days in December, but the show shifted to January this year in the hopes of attracting more buyers. The show is only being held for five days this time around, so the pressure is on to sell.

An interesting tidbit – 76 percent of the boats out there are owned by families with a household income under $100,000. So while you might think of boating as an activity for the wealthy, it is more affordable than that.

Tickets are $12 for adults. Kids 15 and under are free.

Click here to visit NYBoatShow.com for details about the boat show.

Another great site for those who are just getting started in boating and need expert tips is DiscoverBoating.com.

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“Over the last 18 months, marine dealers have survived some of the most challenging times the recreational marine industry has ever seen,” said Roy Parker, president of the Central Florida Marine Trades Association and owner of Parker Boats, in a statement.

“With the economy now expanding, dealers in Central Florida can’t afford not to exhibit at this year’s Central Florida Boat Show. With more than 187,000 square feet of exhibit space, there’s no better area venue to meet with thousands of boating enthusiasts and prospective customers,” he added.

The Central Florida Boat Show annually attracts thousands of boating enthusiasts. This year’s show will feature the latest in 2010 model-year boats, accessories, marine electronics and more.

The Central Florida Marine Trades Association plans to promote the show through a comprehensive marketing and public relations effort promoting the fact that for anyone interested in buying a boat, this year’s show offers a historic opportunity to make a great deal. Don’t miss the Central Florida Boat Show, for more information; Click here for the full release.

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“We will have a water purification unit on display at the boat show so people can see how the systems work. If they so choose, guests at the boat show may make donations toward Haiti disaster response and learn about opportunities to assist with the life saving work of WMI,” said Molly Greene, Founder of Water Missions International, in a statement.

The Charleston Boat Show opens Friday and runs through Sunday at the North Charleston Convention Center.

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If anyone has some parts or complete engine please contact me at 619-424-6544 or cell 619-827-5895.

I need the left and right sitting also. Need a few parts as you can see.
thanks, Frank

Final Day for Black Friday Sale is……..Nov. 27!

We are excited with the prices we have for this limited time only sale
and I know you will be too. Look forward to hearing from you.
Thanks, Rick Ostler