Brunswick to Consolidate Yacht, Motor Yacht Production, Expecting $6-8M Charge

Brunswick Corporation BC announced today that it will consolidate its yacht and motor yacht production at its Palm Coast, Fla., manufacturing plant.  As a result, Brunswick will suspend manufacturing at its Sykes Creek boat manufacturing facility in nearby Merritt Island, Fla., at the end of June. The Brunswick Boat Group's (BBG) Product Development and Engineering center, located adjacent to the Sykes Creek plant, will remain in operation.  In addition, BBG will continue to utilize the existing customer reception facilities, sales and customer service offices, and wet slips located on the Merritt Island campus. The Sykes Creek plant, which currently manufactures Sea Ray and Meridian yachts and motor yachts from 51 to 61 feet in length, currently employs approximately 205 people in manufacturing. The Company is evaluating job opportunities for Sykes Creek personnel to help transition production to Palm Coast or at other BBG manufacturing facilities for those employees who are interested and able to relocate or commute.   When the entire consolidation is completed, the Company estimates that this action will result in annual savings of $3 million - $5 million beginning in 2014.  Restructuring and impairment charges of $6 million - $8 million are expected to be recognized as a result of this action in 2013.