June 26, 2018

Sea Ray SLX 350 OB 400In an investor relations call June 25th, 2018, Brunswick Corporation announced that the Sea Ray boat brand sale process has been ended and that the company will restructure Sea Ray to focus on growth opportunities in the sport boat and cruiser lines while discontinuing the Sea Ray sport yacht and yacht models (including the Meridian brand) starting in third quarter 2018.

"Over the last several months, we have engaged in a thorough sale process for the Sea Ray business, which we believed would generate the highest value for our shareholders," Brunswick Chairman and Chief Executive Officer Mark Schwabero explained.  "Although there was interest in the business, the offers we received did not reflect an appropriate value for this premium brand, and did not meet our expectations.  The lower value was largely due to the persistently weak financial performance of the yacht product category, which complicated and obscured the value of the remainder of Sea Ray.

"As the sale process neared conclusion, we started to evaluate other strategic options beyond our original plan to sell the Sea Ray business in its entirety," Schwabero continued. "Based on that re-assessment, we have concluded that our best opportunity to maximize value is to retain the Sea Ray brand and refocus the business on the sport boat and cruiser product portfolio. As part of the transformation of Sea Ray, we will discontinue sport yacht and yacht models and begin an orderly wind down of yacht production.

"These combined actions will create a revitalized Sea Ray that will benefit from continuing synergy with our broader marine portfolio -- and with targeted ongoing investment - we believe will offer increasingly attractive profitability and cash flow returns.  We believe that this is the best solution to generate value for our dealers and shareholders now and in the future," Schwabero said.

"Sea Ray remains one of the most aspirational and premium recreational boat brands, and our sport boats and cruisers set the industry standard," said David Foulkes, president - Marine Consumer Solutions.  "We will focus our resources on advancing our position in these segments, with an emphasis on the growing and evolving 24 - 40-foot categories.  Moving forward, Sea Ray will continue to offer new products, features and services that leverage our technology and innovation initiatives aimed at enhancing the quality of the consumer boating experience."

Sea Ray will begin to wind down sport yacht and yacht production in the third quarter at its Sykes Creek and Palm Coast, Fla., facilities, involving the elimination of as many as 825 positions. Palm Coast is targeted for closure as soon as practical in 2018, while a portion of Sykes Creek will continue to operate for the foreseeable future to support customer service and warranty obligations, along with other operational requirements.

"We will maintain the capability to provide outstanding service and support to our dealers and installed base of all Sea Ray customers, consistent with the Sea Ray brand promise and history," Schwabero said.  "We appreciate the dedication and commitment our employees and the communities that support our operations and will help them through this transition."

The expected impact on 2018 performance and long-term planning targets was addressed as part of the Company's conference call and in fact the decision today is not expected to result in EPS guidance changes or capital strategy.

Additionally, Schwabero mentioned that the company will continue to look at suitable boat company acquisitions with an emphasis on outboard sales and the related future P&A sales.

The existing and probably substantial used boat market seemed to be significant for Sea Ray and it was noted that their new outboard models like the SLX line have no comparable used market competition making these models more attractive to consumers.

Boating Industry Canada News Week found it interesting that the new Canadian and EU tariffs were not mentioned in either the Brunswick call or in the following Q&A session.

For those who are interested, a replay of the conference call will be available through midnight EDT July 2, 2018, by calling 888-843-7419 or international dial 630-652-3042 (passcode: 4718 7022#).  The replay also will be available at www.brunswick.com.

  • Prev
For a number of years Sail Canada and Provincial Sailing Associations have been advocating ...
West Coast Boatyard Association is hosting 4 days of in-person NMEA training from March 29 to April ...
Increase your industry knowledge and accumulate CEUs! These courses are for members and certified ...
Ontario and Quebec will be the first provinces to receive new Aqua superPower DC rapid chargers, ...
The Toronto International Boat Show team has sent out the following update on the show arrangements.
Due to the spread of the omicron virus variant, further restrictions have been in place in Germany ...
The first issue of Sailing in Canada, a brand-new digital digest produced by Canadian Yachting ...
Again, we want to thank the Boating Industry Canada News Week readers who took the time to complete ...
The American Boat & Yacht Council (ABYC) has announced updates to its annual Standards Week ...
First, thank you to all those Boating Industry Canada News Week readers who have already taken a ...

Virtual Toronto International Boat Show update

 

TIBS VirtualThe Toronto International Boat Show team has sent out the following update on the show arrangements.

Show Dates run for five days: January 26 – 30, 2022
Virtual Show Hours for Attendees to Connect with Exhibitors (email, phone):
Wednesday, Thursday, Friday: 11am – 7pm
Saturday & Sunday: 9am – 5pm

Additional Background on TIBS Virtual:
The 2021 Virtual Toronto Boat Show attracted more than 35,000 registrations made up of returning boat show patrons, new boaters, and first-time show attendees from the Greater Toronto Area, regionally across Ontario, and as far reaching as British Columbia.

Read More


 

Boating Industry Canada News Week

 

Every Tuesday we publish a fresh Digest with informative articles pertaining to the Canadian boating and marine industry. Stay up to date with the latest products, research and industry developments.

Missed an Issue of Boating Industry Canada News Week? If you're looking for a specific issue, or simply want to catch up on previous issues, check out our Boating Industry Canada News Week Archives.

Not signed up for News Week? Subscribe here

 

 

 

 

 

Marine Products

  • Prev
Designed for chairs and benches from 23" to 54", frictionless, strong and low profile electric and ...
Protruding deck hardware—even navigation lighting—creates a trip hazard and disrupts the clean, ...
New marine cartography from Navionics delivers combined, all-in-one inland and coastal mapping, ...
In a damp and corrosion-prone onboard environment, electrical devices can short circuit to ground, ...
Keeping an array of smaller-sized fabric cleaning products around the boat, RV or house is a ...
Garmin® International, Inc., a unit of Garmin Ltd. (NYSE: GRMN), the world’s largest1 and most ...
Great music is as much a part of the outdoors as spray over the bow or mud kicked up while ...
Henry H Smith is pleased to announce their recent appointment as the Canadian Distributor for the ...
Few things on a boat have the power to convey a sense of luxury as much as the steering wheel. The ...
When the traditional twist-type shore power connection was invented in the 1930s, electricity ...

Leather-wrapped steering wheel is the ultimate luxury

Leather-Wrapped Steering WheelFew things on a boat have the power to convey a sense of luxury as much as the steering wheel. The new Torcello Elite from Schmitt & Ongaro Marine does just that. Wrapped in hand-stitched marine-grade synthetic leather, it delivers a hand feel that matches that of a premium automobile.

Designed to be customized in quantity to match virtually any boat interior, the 14" polyurethane Torcello Elite can be manufactured in an endless array of leather and stitching color combinations. 

 

 

Read More


 

People

  • Prev
Outdoor Industry sales and operations professional Russ Ackerman, with 30 years management and ...
Boating Ontario continues to deliver exceptional member value staying at the forefront of ...
The Limestone Boat Company – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay ...
Mike Burns, president of North South Nautical Group is pleased to announce the expansion of ...
The Royal Canadian Yacht Club announces  the appointment of two new directors to the senior ...
Yamaha Motor Canada is pleased to announce several new members have joined its sales and marketing ...
Brunswick Corporation (NYSE:BC) announced on October 25th, that it has named Keith Yunger as ...
Andrews, Henry (Hank, C.J ) - It is with heavy hearts that we announce the passing of Henry on ...
After 40 years of proudly serving the boating community, Scott Smyth, founder and owner of The ...
Brunswick Corporation (NYSE: BC) announced on September 20th that Kris Neff has been named ...