(Reuters) - CHICAGO, July 20 - Brunswick Corp., the world's largest maker of recreational boats, on Friday cut its 2007 earnings forecast and said it would cut boat production during the rest of the year, citing a weak U.S. retail marine market, sending shares down more than 7 percent.
"Preliminary industry data indicates that retail sales are down by as much as 13 percent in our key category of sterndrive and inboard powered fiberglass boats in the second quarter, which historically represents the strongest period of the selling season," Chief Executive Dustan McCoy said in a statement, explaining company production and shipment cuts. "Despite our actions, however ... we have not made meaningful progress in reducing our pipeline inventories for these products," he added. "We also see no reason to believe that retail trends will reverse in the second half of the year, which is the slowest period for boat sales."
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"Preliminary industry data indicates that retail sales are down by as much as 13 percent in our key category of sterndrive and inboard powered fiberglass boats in the second quarter, which historically represents the strongest period of the selling season," Chief Executive Dustan McCoy said in a statement, explaining company production and shipment cuts. "Despite our actions, however ... we have not made meaningful progress in reducing our pipeline inventories for these products," he added. "We also see no reason to believe that retail trends will reverse in the second half of the year, which is the slowest period for boat sales."
Read more at Reuters.com Market News
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