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The global economic downtown has claimed more victims in Maryland: Brunswick Corp. of Lake Forest, Ill., maker of boats, billiards and bowling balls, is closing its Bayliner boat plant in Cumberland, eliminating about 115 jobs.
Brunswick is shifting operations at the plant, where it produces Trophy offshore fishing boats, by the end of the year to its facility in Ashland City, Tenn., the company announced.
"As we deal with the global economic downturn and its impact on recreational marine markets, we are continuing to shrink our North American manufacturing footprint," Dustan E. McCoy, chairman and CEO, said in a statement. "This decision is no reflection upon the Cumberland work force or product, but the result of our need to develop a more efficient manufacturing footprint.
"As previously announced, Brunswick has been following through on a number of measures to reduce expenses and resize the company to compete in the global marine market," McCoy said. "Over the past two years, we have closed 12 other North American boat plants, in addition to Cumberland, and have continually reduced production rates throughout our marine businesses."
The Cumberland plant will also impose a three-week furlough, during which all boat production is temporarily halted, while the phase-down is completed, he said. The 78,175-square-foot facility is on more than 10 acres.
The company said it will offer outplacement assistance for laid-off workers, including severance and help finding other jobs. Brunswick is one of Allegany County's top 20 employers, according to county and state information.
The announcement comes on the heels of a disappointing earnings report for the quarter ended Sept. 27. Brunswick reported a net loss of $591.4 million for the quarter, versus a profit of $1.9 million in the same period last year. The loss includes goodwill and trade name impairment charges totaling $491.1 million. Sales fell to $1.04 billion from $1.33 billion in the prior-year quarter, with the drop mostly in the company's boat and marine engine segments.
Retail unit sales of powerboats in the U.S. have been declining since 2005, the company said, with the falloff accelerating this year.
Brunswick stock was trading at $2.30 on Monday, down from a 52-week high of $21.48.
