UPDATE 1-Brunswick loss narrower than expected; shares jump

Thu Jul 24, 2008 3:08pm BST
[-] Text [+]

NEW YORK, July 24 (Reuters) - Brunswick Corp (BC.N: Quote, Profile, Research), the world's leading maker of recreational boats, posted a narrower-than-expected quarterly loss on Thursday, sending its shares up 12 percent in early trading.

The company, which also forecast it would lose money in the second half of the year, lost $6 million, or 7 cents per share, in the second quarter, compared with a profit of $56.9 million, or 63 cents per share, a year earlier.

Analysts' average forecast was a loss of 40 cents a share, according to Reuters Estimates.

Sales fell 2 percent to $1.49 billion, which was also ahead of forecasts.

The company said it is continuing to cut production to reduce inventories at marine dealers, and is also cutting spending. Most of its Fiberglas boat plants will be shut down for a month in the third quarter, and further cuts may be necessary, it said.

The company said it expects to post a second-half loss but still expects a profit for the full year.

Brunswick, which also makes fitness and billiards equipment, has said it faces eroding consumer confidence in light of high fuel and food prices and a slumping home market.

Brunswick shares were up $1.48 to $14.01 in early trading on the New York Stock Exchange, reaching their best level since May 27. (Reporting by Nick Zieminski, editing by Gerald E. McCormick and John Wallace)

 
 
BC.N
Last:
Change:
Up/Down:
 
by Name by Symbol