Sea Pro plant to close as boating industry faltersAbout 175 workers losing jobs end of June By Kyle Stock (Contact)
The Post and Courier
Saturday, May 17, 2008
Foundering in a listless economy, Brunswick Corp. plans to sink its Sea Pro line of fishing boats and shutter the South Carolina plant where the vessels have been made for 12 years. The move comes as the boating season is getting under way in Charleston and the rest of the state. And it is yet another sign of the choppy waters that the recreational marine industry is navigating as consumers spend more of their income on food, fuel and other necessities. 
Tyrone Walker Brunswick Corp., which acquired Sea Pro boats in 2004, plans to discontinue the brand, which is popular in the Charleston area. Other companies in the boat business have been struggled lately. West Marine Inc., a California-based boating supplier with four retail stores in the Charleston area, lost $17.6 million in the most recent quarter. At the same time, MarineMax Inc., a Florida-based boat-seller, lost $3.5 million as almost a third of its sales dried up. Industry analyst Marisa Thompson, who tracks Brunswick for Morningstar Inc., said the boating business is at its lowest point in 15 years, calling 2007 a "complete bust" for new boat sales. "Nothing on the horizon makes me believe this thing will turn around," Thompson said Friday. "Brunswick would not have done this if it was not absolutely necessary." The Fortune 500 company also is scrapping its Laguna, Palmetto and Sea Boss lines. As for the demise of Sea Pro — a popular brand among Charleston boaters — Brunswick said some 175 South Carolina workers will lose their jobs by the end of June as the factory in Newberry winds down production. The Sea Pro Web site said 350 people work at the soon-to-close plant, though Brunswick spokesman Dan Kubera said that number is dated. In a statement, Chief Executive Dustan McCoy cited high fuel prices, housing woes and an uncertain economy in explaining the decision. "The U.S. marine industry has been in a prolonged slowdown since late 2005," McCoy said. "This market-driven action should not be viewed as a reflection on the performance of our employees." Sea Pro, which makes saltwater sport boats between 17 and 25 feet, was founded in Blair, near Columbia, in 1987 by the Hancock family, a clan of avid anglers. In 1991, the operation moved to a larger factory in Chapin and jumped to its current facility in Newberry in 1996. Lake Forest, Ill.-based Brunswick acquired the South Carolina company in 2004 in a buying spree that snapped up boat-makers all over the world. The stormy economy has since taken its toll. Brunswick posted a $111.6 million profit last year, but its income plunged 71 percent in the first quarter, weighed down by weaker demand for boats. Duncan's Boats in North Charleston sold 20 Sea Pros since it picked up the line in November, said owner Jim Duncan. It still has 12 on the lot. Duncan said Brunswick's decision to scrap Sea Pro was "certainly a surprise." "But it's not any big problem for us, we'll just buy another brand and move on," he said Friday. Duncan noted that Brunswick will continue to service Sea Pros and honor the warranties. In an effort to shore up its finances and focus on its more established saltwater brands — including Boston Whaler, Trophy and Hatteras — Brunswick has closed a number of plants in recent years. Its 285-worker factory in northern Ohio will be closed by the end of this month. "I'm worse than a funeral director, for gosh sakes," said Kubera, the Brunswick spokesman. "Unfortunately, it's not unique, and it's definitely something you never get used to." Brunswick employs 27,000 workers and also makes billiard tables, bowling balls, fitness machines and foosball tables. Its stock closed at $16.73 on the New York Stock Exchange Friday, near its lowest point in five years. Locally, the company also owns half of North Charleston-based Cummins MerCruiser Diesel. Also, Brunswick briefly considered setting up a regional headquarters office in the Lowcountry in 2002 but ultimately decided on another location. Reach Kyle Stock at 937-5763 or kstock@postandcourier.com. |
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Comments
This article has 9 comment(s)
Posted by pirate42 on May 17, 2008 at 5:57 a.m. (Suggest removal)
HEY....BUSH think we are still doing OK ....
Posted by JohnS on May 17, 2008 at 8:43 a.m. (Suggest removal)
Well made boat
Posted by Zod on May 17, 2008 at 9:54 a.m. (Suggest removal)
More good news as hedge funds have their way with the oil commodity market. This economy resembles animals eating their young......
Posted by jsteph10 on May 17, 2008 at 11 a.m. (Suggest removal)
Just curious how falling boat sales is the President's fault?
I am a Libertarian and by no means a Bush cheerleader, but if you had a direct line to him what you suggest?
Posted by mershadonn on May 17, 2008 at 3:41 p.m. (Suggest removal)
Sea Pro plant to close as boating industry falters
About 175 workers losing jobs end of June
By Kyle Stock (Contact)
The Post and Courier
Saturday, May 17, 2008
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~``
the sky is falling. No its not !! Be Happy go buy a Boat!Refinance your house and you will be OK! We have some really great re fi ideas, how about the one year interest only product for you today ?? My SUV eats gas ,no no no it is ok since George wants to talk smack with the Saudis it will be OK !
a few years later : foreclosures littering America and gas is 4$ a Gallon and there is more unemployment then the people see .
I never applied , and just lost my house to forclosure. It went on Tuesday at the Dorchester County sale .
So you see , the sky DID fall and it is NOT OK since now I am homeless , since I DID get the SUV and I did get the ARM .What I couldnt get was a good job .
BTW George, nice to see you were happily flying on Airforce One to Texas for a personal reason while my house was being foreclosed on , and that you could not get the Saudis to help out thier good American Allies and pump more oil...
So we will see what those unemployment and foreclosure numbers are in 3 and 6 months .
betcha it will be worse ..
See you all on the Streets .
Posted by CedarPosts on May 17, 2008 at 4:20 p.m. (Suggest removal)
The scuttlebutt has it that Hatteras is on the chopping block as well. The semi custom high end boat builder is sitting on six plus 2006 hulls and five from 2007.
Think spec home builder in a rapidly declining neighborhood.
Does not look good for one the the grandest names in boating.
Posted by jsteph10 on May 17, 2008 at 4:54 p.m. (Suggest removal)
I am hoping that is sarcasm, but if not, no one forced you to buy anything (house, suv, etc.)
Posted by Zod on May 17, 2008 at 5:24 p.m. (Suggest removal)
jsteph, I did not mention a name. I blame the entire lot up in Washington. If an investor finds a inefficiency in a market, it is his job to exploit that inefficiency. Archdude, It isn't just me that can see the price of oil is not related to supply and demand OF A COMMODITY -
"Hedge-fund managers and other large speculators increased their net-long positions in New York crude-oil futures in the week ended May 13, according to Commodity Futures Trading Commission data released after floor trading ended today. Longs have outnumbered shorts since February 2007."
The Saudi oil minister, Ali al-Naimi, who also met Bush in Riyadh, had said in a speech in Seoul Thursday that turmoil in financial markets was to blame for record oil prices, rather than a shortage of supply.
"The Saudi government has reiterated its policy that Saudi Arabia is willing to put on to the oil market whatever oil is necessary to meet the demand of Saudi Arabia's customers," (US Security Advisor) Hadley said after the meeting. "What they are telling us is that you need to look at the dynamics of this oil market, our customers are not asking us to sell us oil."
Simon Wardell, energy research manager at Global Insight Inc, said. "The Saudis say there is oil out there that is available and is not being purchased."
Posted by Zod on May 17, 2008 at 5:38 p.m. (Suggest removal)
"The Saudi minister reiterated that financial markets, rather than fundamentals, were influencing current oil prices. “Financial markets have a logic and mechanism of their own. Such markets are influenced by ever-changing factors and parameters that transcend markets and boundaries and are often unregulated. Therefore, the short-term oil prices are more closely tied to the internal logic of the financial markets than to underlying supply and demand fundamentals.”
Zod's translation - Hedge funds answer to nobody. They have found their cash cow in a down market and they will milk that cow until somebody regulates their activity.