Brunswick to sell BNT, Ben Baffled

Ben Ellison

Ben Ellison

Panbo editor, publisher & chief bottlewasher from 4/2005 until 8/2018, and now pleased to have Ben Stein as a very able publisher, webmaster, and editing colleague. Please don't regard him as an "expert"; he's getting quite old and thinks that "fadiddling fumble-putz" is a more accurate description.

5 Responses

  1. Russ says:

    You don’t understand corporate politics. Look at the history. New CEO named last December and lauded for his purchases of boat brands. Q4 earnings are $.90 / share. In February he shuffles his management team but does nothing in the “New Technologies” group, then acquires Cabo Yachts, another boat brand. In April he reports earnings of $.70 / share, down from $.96 the previous year. The “New Technologies” were not contributing to the bottom line:
    Commenting on the first quarter, Brunswick Chairman and Chief Executive Officer Dustan E. McCoy said, “The 5 percent sales growth from ongoing operations was driven primarily by contributions from boat companies acquired subsequent to the first quarter last year, as well as increased sales from our Bowling & Billiards and Fitness segments. Excluding the benefit of acquisitions, sales were down slightly.
    Bottom line, it’s a boat company, not an integrated engine company.
    They need electronics expertise, but the whole point of open standards like NMEA 2000 is that you don’t have to do everything yourself. Look to the computer or networking industry, both rich in open standards, so see how this will evolve. The monolithic “IBM only” world of 1970 evolved into a very efficient multi-vendor environment that has driven prices way down and performance way up. Dell doesn’t need to own Intel to be successful. IBM doesn’t need to own Cisco to be heavily networkd.

  2. Russ says:

    I think the more interesting, or scary, issue with this sale is that with the exception of Raymarine, all the major marine navigation companies are up in the air. Simrad, B&G, Northstar and Navman are all experiencing rapid changes in ownership which in general is not good for long term committments to innovation and product development.

  3. Mike says:

    “Multi-vendor enviroment” this will not happen in the marine industry becuase it is not a consumer electronics market. The numbers are too small.

  4. Bill Kearney says:

    Multi-vendor is already happening. I can attach my Lowrance fuel sensors to a network with my Maretron tank level sensors and display them on my Raymarine chartplotter, meanwhile also taking inputs from my Airmar sensors and outputting to my VHF radio. Heck, the only thing that’s not integrated at this point is the stereo head unit but some chartplotters are already talking about integrating MP3 playback. So much for your theory of it “not happening”.
    It’s true the numbers in boating pale in comparision to consumer or automotive electronics. But that doesn’t mean they don’t grasp the value of interoperability.
    As for Brunswick, one gets the sense they’re a financial trainwreck waiting to happen. Gorging themselves buying everything from electronics to marinas and then trying to mash it all together under one management umbrella? That’s a recipe for disaste. Any smart investor should not view them as a long term value.

  5. Rob says:

    It is important to note here that Brunswick is NOT planning on selling MotoTron, its leader in SmartCraft CANbus integrated boat electronics. They are quickly increasing the number of ‘SmartCraft’ capable electronics which includes NorthStar and Navman.
    I don’t believe Brunswick is losing much in this sell-off, they are merely conentrating more heavily on their marine business.

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