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Brunswick shares hit new multi-year low
Shares of Brunswick Corp. (NYSE: BC) dropped to a new low on June 13 as an analyst trimmed his targets on the company’s shares due to broader economic concerns. The company’s core business is in boating, but it also owns Life Fitness, Parabody and Hammer Strength.
Additionally, Standard & Poor’s announced it was removing Brunswick from the S&P 500 Index due in part to its diminishing market cap and adding it to the S&P SmallCap 600. The change is effective June 21.
Earlier in the session, the stock declined 2.5 percent to $12.75, a level it has not traded at since September 1998. It closed the day at $13.15, up $0.07 from the previous day’s trading.
“The operating environment for Brunswick Corp.’s marine business (which represents the bulk of the company’s revenue stream) remains challenging,” Edward Williams of BMO Capital Markets wrote in a client note after meeting the company’s management. “High fuel prices, tighter access to consumer credit, and poor housing markets — especially in boating heavy states such as California and Florida — are collectively contributing to a significant reduction in demand for new boats and engines.”
The analyst added that higher fuel costs will likely lead to lower boat usage, hurting the company’s parts business. He slashed his profit estimates for this and next year and cut his price target to $16 from $20, but maintained his “Market Perform” rating.
GSI closing Portland distribution center
GSI Commerce (Nasdaq: GSIC) said its e-commerce retail-and-distribution center in Portland, Tenn., would close Sept. 30, and 148 people would be laid off.
The company said the center is closing because Restoration Hardware has decided to move its distribution in house.
The company has four fulfillment centers, four customer-care centers, two data centers, and three office locations nationwide. The Portland site is the only one to close down, and employees are being offered retention bonuses, it added.
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