Thursday, March 28

Sea Ray Closing High-End Cruising Boat Plants in Florida. Will Focus on 25- to 40-Foot Models.

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Brunswick, which has owned Sea Ray since 1986, just announced that it is shutting down the two Florida factories that make Sea Ray’s high-end sport yacht and yacht lines, laying off about 825 workers. Last year Sea Ray (and Meridian) had an operating loss of $17.2 million.

Brunswick has been trying to sell Sea Ray, one of the largest boat companies in the U.S., since last December. But Mark Schwabero, the Brunswick chairman and CEO, said “the offers we received did not reflect an appropriate value for this premium brand, and did not meet our expectations.” A major problem, he said, was “the persistently weak financial performance of the yacht product category.” As a result, Brunswick is closing the Sea Ray factories at Sykes Creek (Merritt Island) and Palm Coast (pictured above). It will stop production of the Sport Yachts and L-Series yachts in the next few months.

Instead of selling Sea Ray, Schwabero said Brunswick will “refocus the business on the sport boat and cruiser product portfolio,” making boats from 25 to 40 feet. Sea Ray now has 21 different models in that category, including eight that are powered by outboard engines. (Brunswick also makes Mercury and Mariner outboards.) The outboard segment is one of the fastest growing trends in powerboating, and many of the new Sea Rays will have outboard power.

Sea Ray makes about 2,000 boats a year, including 300 to 400 over 40 feet. MarineMax sells about 50 percent of all Sea Rays worldwide, and Sea Ray accounted for about 23 percent of MarineMax’s revenue last year.

Brunswick Corp., based in Lake Forest, Illinois, makes boats, boat engines, fitness and billiards equipment. Its boat brands include Sea Ray, Meridian, Boston Whaler, Bayliner, Crestliner, Lowe, Lund and Harris.

Brunswick is traded on the New York Stock Exchange as BC. Its stock was selling in the $64 range in the middle of the week. At its low on December 1, 2008, the stock sold for $2.00 a share. Read more:

https://flaglerlive.com/123593/sea-ray-boats-palm-coast-shuts-down/

 

 

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