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Mercury Marine reports earnings

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Old 07-25-2002, 11:23 AM
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TulsaLarry
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Default Mercury Marine reports earnings

Marine Engine Segment

The Marine Engine segment, consisting of the Mercury Marine Group, reported sales of $505.8 million in the second quarter of 2002, up 6 percent compared with $475.1 million in the year-ago second quarter. Operating earnings in the second quarter declined to $77.8 million versus $79.1 million a year ago. Operating margins were 15.4 percent compared with 16.6 percent.

"Sales benefited from strong performance in international markets, which were up 8 percent in the quarter, and higher sales of sterndrive engines. Operating margins were adversely affected by a continuing mix shift to low- emission outboard engines, which accounted for 41 percent of outboard sales in the quarter versus 34 percent a year ago. Higher variable compensation expense accounted for the remainder of the margin swing," Buckley commented.

"On the new product front, testing of our new, high horsepower four-stroke outboard engines is progressing well. We will begin field testing with our boat builder customers in the fall, with the product launch scheduled for 2003. We believe that consumers will be as enthusiastic about this product as we are," Buckley noted.

Boat Segment

The Brunswick Boat Group comprises the Boat segment and includes the Sea Ray, Bayliner, Maxum, Sealine, Hatteras, Boston Whaler, Trophy, Baja and Princecraft boat brands. The Boat segment reported sales for the second quarter of $373.3 million, up 14 percent compared with $326.2 million in the year-ago second quarter. Operating earnings totaled $11.0 million, up 12 percent from $9.8 million. Operating margins in the second quarter were 2.9 percent versus 3.0 percent a year ago.

"The sales gain was driven by contributions from recently acquired Sealine International and Hatteras Yachts, which were not in the year-ago quarter. Absent the acquisitions, sales for the Boat segment were down 1.5 percent. This was primarily due to lower sales at Sea Ray, reflecting the weakness in the large boat market and our efforts to reduce pipeline inventories. The smaller boat market is showing some resilience, although retail demand overall is still tracking below year-ago levels, as expected," Buckley explained.

"During the quarter, we continued the rollout of the Bayliner 175, our 17-foot entry-level runabout that features a boat, engine and trailer package with an MSRP of $9,995. The response from our dealers and consumers has been overwhelming. In fact, we've had to restrict production as we qualify additional suppliers to meet the strong demand for this product. We want to assure that every boat we produce meets our high-quality standards," Buckley noted.


Sounds like the 17 foot Bayliner is the boat to buy.
 
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Old 07-25-2002, 12:06 PM
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Default Re: Mercury Marine reports earnings

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Originally posted by TulsaLarry
The Marine Engine segment....Operating margins were 15.4 percent compared with 16.6 percent.
WOW! Looks like their pricing strategy is working (if you're a shareholder and not a customer....)
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Old 07-25-2002, 12:20 PM
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ursus
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Perhaps they should reuce there profit margins to zero, go out of biz so we could then all buy engines and drives from the state run non profit Yugomarine corp.

Or then again perhaps the free market production and demand system is best.
 
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Old 07-25-2002, 12:34 PM
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Default Re: Mercury Marine reports earnings

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Originally posted by TulsaLarry
-foot entry-level runabout that features a boat, engine and trailer package with an MSRP of $9,995
Hell, I should trade mine in for 7 of these things, one for each day of the week...I'll keep the hours low on each one and sell 'em back practically new!
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Old 07-25-2002, 12:51 PM
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Quote:
-foot entry-level runabout that features a boat, engine and trailer package with an MSRP of $9,995
I here Red Greeen is duct taping two of them together on an up coming segment to make a hi perf cat
 
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