Brunswick expects US$70 to US$95 million charge in Q4 related to BNT sale
By IBI Magazine
Brunswick Corporation announced today in a statement that because of "increasingly challenging market conditions in the highly competitive portable navigation device (PND) segment," it expects to report a non-cash asset impairment charge of US$70 to US$90 million in the fourth quarter. Brunswick announced it intended to sell BNT, which includes Navman, Northstar and MX Marine brands, last April. But it said today that increased competition and pricing pressures in the PND market segment are adversely affecting the operating results in the fourth quarter. "Based on the performance of this operation and very recent discussions with potential buyers, the company has concluded that proceeds from the sale of BNT will be less than its book value," said the statement. "Over the past two months, we have experienced a significant change in the market dynamics for PND products, primarily in Europe where Navman holds the number-three market position," said Dustan McCoy, Brunswick chairman. "In November alone we witnessed an even greater level of price discounting, which has adversely affected our PND business unit." McCoy said that Brunswick is continuing with the sales process, adding that the marine electronics and fleet management units were "performing at above or expected levels."
(11 December 2006)
|
