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#569742 - 12/05/17 04:00 PM Brunswick to sell off Sea Ray brand  
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Capn Morgan Offline
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#569743 - 12/05/17 05:11 PM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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Well that article said a whole lot of nuffin! It'll be interesting to hear what comes out of the press conference today.


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#569745 - 12/05/17 10:58 PM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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Will be interesting to see what happens.


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#569748 - 12/06/17 07:32 AM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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Article said a lot, without spelling it out in detail.
This is basically the reasoning behind this non-detailed announcement:
Quote
"Our immediate focus is on informing our employees and dealers at this moment," Brunswick spokesman Daniel Kubera told Trade Only Today.


The Sea Ray and Meridian brands are high risk, not selling well (yachts over 40ft). Brunswick wants to reduce it's
exposure to these high risk products. Sea Ray has lost major market share in sterndrive and outboard powered fiberglass boat sales. And going forward, they obviously see
they can't re-gain that market share. So, sell it, and make the profit off engines, both sterndrive and outboard's. As well as their marine accessory companies.

It will likely be bought by a large private equity firm, similar to when Four Winns/Glastron/Wellcraft was bought out of bankruptcy from Genmar, and sold to Platinum Equity, and then
sold to current owners Beneteau.

We have some new, high tech products in production for the L550, that will be delivered this month. We have been advised to carry on as if nothing is happening. Hopefully the right
buyers will stick with us going forward. We see no reason that it won't.


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#569750 - 12/06/17 09:12 AM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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captkevin Offline
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Didn't realize there sales numbers were off. Would have guessed they were doing good.


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#569751 - 12/06/17 10:02 AM Re: Brunswick to sell off Sea Ray brand [Re: captkevin]  
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Capn Morgan Offline
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Originally Posted by captkevin
Didn't realize there sales numbers were off. Would have guessed they were doing good.


This little cut and paste may help explain the sales numbers, etc.

Quote
Macro-Trends Tell the Tale
The general public has always had a misconception of how many new boats are actually sold in the U.S. In 2000, there were 342,000 new boats sold in the U.S. – outboard boats of all kinds, inboard ski/wake boats, inboard cruisers, and sterndrive boats. Today, new boat sales, in the same categories, total less than half that number.
Hardest hit has been the sterndrive category – Sea Ray’s strong suit -- where industry-wide sales were 78,000 in 2000 and are fewer than 20,000 today. And, sales of inboard-powered cruisers are about 70% of what it was just 17 years ago. Both of these categories were Sea Ray’s bread and butter, and the markets had shrunk to a shadow of its former size.


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#569752 - 12/06/17 10:28 AM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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Smaller production numbers on new SR boats could bode well for used SR boats in good condition, even with a smaller number of customers in that segment. Or not. Time will tell.

I'd venture a guess that outboard powered boats saw the biggest climb in sales numbers as more and more manufacturers are producing more and more OB powered models.


"Beachcomber" 1995 Sea Ray 550 Sedan Bridge


Anchor's down......Bottoms Up!
#569753 - 12/06/17 11:08 AM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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captkevin Offline
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Was just reading an article talking about RV sales & huge increase they have seen in sales this year over last.

http://www.rvia.org/?ESID=indicators

Would have expected that to carry over with boats.


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#569754 - 12/06/17 01:15 PM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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Capn Morgan Offline
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Here is a bit more detailed information for those who are interested.

https://www.tradeonlytoday.com/manu...link&utm_campaign=enewsletter-120617

Quote
The sale signals both the company’s shift toward consumer trends, which continue to favor outboard power, and its strategy to decrease the most cyclical parts of the business.

A much larger portion of the boat and engine business will now be tied to outboard propulsion, “which has proven to be more cycle-resistant than sterndrive and inboard boats and engines,” Schwabero said. The sale includes the company’s Sykes Creek and Palm Coast facilities in Florida, its manufacturing plant in Tellico, Tenn., and its Dandridge and Greeneville, Tenn., support facilities that are largely dedicated to, and are currently supporting, Sea Ray production, Brunswick spokesman Daniel Kubera told Trade Only Today.

Sea Ray parts, development and engineering, as well as international operations, will also be sold, Kubera said, as well as the Meridian brand, which has been out of production for several years.


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#569755 - 12/06/17 02:41 PM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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Jack T Offline
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:So, sell it, and make the profit off engines, both sterndrive and outboard's. As well as their marine accessory companies."

Sounds like the same take that Bombardier took a few years back. They supply power trains, others build the boats to put them in.

In my opinion, this may just make room for some small boat builders to enter the business, and stay competitive with the bigger company bureaucracies. Unfortunately, they get into the business, bad business climates develop, they go bankrupt, buy back their molds at near $1.00 each and open up a new company, usually with key words to make it sound the same.


Have a great day of boating
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#569756 - 12/06/17 02:49 PM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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It will be interesting to see how long the current trend towards outboard powered boats lasts. There are certainly trade-offs being made that diminish usability of the stern of the boat for water sports and fishing.



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#569758 - 12/06/17 03:53 PM Re: Brunswick to sell off Sea Ray brand [Re: Jack T]  
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Originally Posted by Jack T
:In my opinion, this may just make room for some small boat builders to enter the business, and stay competitive with the bigger company bureaucracies. .

The larger boat builders will be able to buy the engines in quantities and get quantity discounts that never will be available to the smaller boat makers, thus giving the big companies a price advantage over the little guys. It would be tough for the little guys to compete given their price disadvantage.


"Beachcomber" 1995 Sea Ray 550 Sedan Bridge


Anchor's down......Bottoms Up!
#569761 - 12/06/17 05:15 PM Re: Brunswick to sell off Sea Ray brand [Re: Capn Morgan]  
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Jack T Offline
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"It would be tough for the little guys to compete given their price disadvantage."

GFC, you may be right, but I was thinking (didn't write) of the custom performance boat builders such as Southern California builders Howard, Advantage, Shockwave, Essex, Eliminator, etc. And don't forget the current high priced wakeboarding boats--hard to buy a new one of these for under $100K. They get premium prices anyway. The best part of the cost of new boats going up and fewer being made is that our used boats values go up, too--as long as demand holds.


Have a great day of boating
2012 Monterey 224 FS,
300 HP Volvo Penta with catalytic converters


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