The Brunswick Corporation confirmed today that 94 people were laid off at its Sea Ray-Palm Coast plant, and about 130 more “will be part of a temporary furlough to be conducted during the third quarter,” according to a company spokesman. Sea Ray, one of Flagler County’s top 10 employers, was employing 560 people before the layoffs, in well-paying manufacturing jobs.
No other Brunswick facility is affected by the reduction.
The company’s announcement of layoffs and furloughs at Sea Ray coincided with the release of its second-quarter results on Thursday, which reflected buoyant numbers and a bright outlook.
“These actions were to align our production levels with market demand in the 40’- 49’ segment of our business,” Dan Kubera, Brunswick’s spokesman, said, referring to the size of boats manufactured at Sea Ray’s plant off Colbert Lane, “while continuing to maintain our production capabilities in stronger segments of the business.”
“No specific boat models are being discontinued or moved to another production facility, production numbers are being eased to align production levels to market demand,” Kubera explained. “Furloughed employees will return to work as determined by production schedules. This will likely be later in the third quarter, and we are keeping our employees informed. We are not sharing the dates publicly.”
Lake Forest, Ill.-based Brunswick manufactures boats, boat engines, parts and accessories, fitness equipment, billiards and game-room equipment and furniture, the lot under numerous brands, Sea Ray being just one of them. The company struggled through the Great Recession but recovered strongly since, its stock trading at $56.50 per share today after falling to a low of just over $2 a share in 2010. It hit an all-time record of $63 two weeks ago.
The company posted a net sales of $1.35 billion, an 8.8 percent increase compared with the same period a year ago, with operating profits of $119 million, an increase of 4 percent compared with the second quarter in 2016.
Boat sales in particular had even stronger results. The company’s combined 15 boat brands had net sales of $412.1 million, a 12 percent increase over a year ago. International sales, which represented 27 percent of total boat sales in the quarter, increased by 11 percent. Boat sales netted the company operating profits of $24.7 million, up from $22.7 million in the second quarter of 2016.
“Our outlook for 2017 continues to be generally consistent with our three-year strategic plan and reflects another year of outstanding earnings growth, with excellent cash flow generation,” said Schwabero. “We believe we are well-positioned to generate strong sales and adjusted earnings per share growth in 2017 and beyond.
“We expect our marine businesses’ top-line performance will benefit from the continuation of solid growth in the U.S. and international markets and the success of our new products,” Brunswick Chairman and Chief Executive Officer Mark Schwabero was quoted as saying in a company release announcing second-quarter results, with predictions of 7 to 8 percent growth in 2017.
At Sea Ray, the company says it will help furloughed employees through the transition and help with placement of laid-off employees. “We take good care of our people and will continue to develop our employees and support those impacted by these adjustments,” Kubera said in an email. “For example, we will be conducting an outplacement fair to help these individuals transition to other employment. As for those on furlough, the company is offering a number of measure to help soften the impact upon those individuals.”
Though 40 percent of the workforce was affected by the layoffs and furloughs, the company expects the workforce to be back up to 83 percent of its former total once workers return from furlough.
Sea Ray’s manufacturing facility on 64 acres along Sea Ray Drive contributed $88,208 in total property taxes last year, the bulk of it to Flagler County government and the school district.
Jan Reeger says
This is very sad. There are few to none in other jobs for them to go to.
woody says
MORE tax incentives and permission for a even LARGER parking lot is in order.
Dontlosehopeplease says
They will never get hired back. Move out asap leave Flagler asap🤢
John dolan says
A lt’l nauty. Should have waited til Christmas. How do they pick who stays?’ Seniority? Or ass kissers?
Tattooed Beatnick Wannabe says
As business friendly as this county is why would they leave?
Run from Flagler!!!
Sw says
Not good, feast n famine
Mark101 says
Flagler County is doomed, unemployment impacted, the sky is falling.
jc says
what else is new. Another huge corporation getting tax breaks from a variety of sources and then gutting jobs while making a killing. Its sick.
John dolan says
A lit’l nauty. Should have waited til Christmas. Who goes? Will seniority be the gold standard or will they keep the ass kissers like Flagler County?
DRedder says
Love to hear the story 1st. Hand from both the let go’s and the furloughed.
palmcoaster says
Very sad the situation of those workers.
Also very peculiar that this Sea Ray plant in Palm Coast was doing so well for the last 5 years and now with all the (false) promises of new jobs in the Trump administration there are massive layoffs..?
Where are the jobs..?
Anonymous says
How many managers and HR people are getting furloughed. My guess is none. SeaRay treats employees like assets. “Human” Resources. Even when times are good and bottom lines are rising and the stock is up…..They still see fit to save a few bucks on labor. Squeeze every last dime of profit you corporate assholes. Sea Ray sucks for the way they manipulate and use employees!
Me says
Sea Ray, , is not the only company, ,,the economy sucks,,,,there are more people in the county, ,then jobs,, we live in a county that was built for retirement folks, ,,,
Ashley says
My dad was hired and laid off from there 3 different times. He always went back because he desperately needed work. This was back during the recession! It will never change. People are disposable to them. I hope everyone finds their way…
beachcomberT says
Something doesn’t quite compute. Company gives a rosy sales forecast to shareholders but cuts jobs in Flagler, some permanently. (So, why do we call it a layoff when Sea Ray says it will provide outplacement of some of the workers?) Over the years, Boston Whaler in Edgewater seems to have been a more reliable employer. I wonder how many Sea Ray has lost to BW?
Constantly Amazed says
Although I never want to see anybody loose their jobs unless they deserve however as an area recreational boater I have to say,
HAVE YOU SEEN THE PRICES OF A SEA RAY BOAT LATLEY, WOW !
The country is slowly coming out of the “under reported depression” encouraged and nurtured by the previous administration. Luxury spending may still a way’s off If it ever becomes fashionable again. With the wave off the SOCIALIStT political movement gripping the ” Millennials” generation luxury items such as boats will become extinct for the common people but as always in SOCIALIST, COMMUNIST & DEMOCRATIC (post Clinton) Philosophies only the elite of the party will be able to afford them. But let’s no kid ourself they will have the taxpayers provide it for them.
Shark says
I hear the coal mines are opening in West Virginia !!!!
r&r says
It sounds like they were over staffed. If they had a system as to goes maybe it was based on who were trouble maker and/or nonproductive.
Hopeful says
Trump alone can fix it.
Lou says
Why is anybody so surprised? Labor is a tool of production, just like a hammer and disposable when the tool is no longer needed. When you have a broken-in tool and have a need for it, you will use it to avoid (cost less) the “breakinh-in” cost.
Worried Grammy says
As in years past, this company has proven to be very greedy. They brag about their earnings and how well the company is doing, then two days later they lay off how many people. They usually don’t hire back the same people and not at the same wage. The employees are no longer “profitable” so we will “furlough” them. What a joke, Just goes to show that everyone is dispensable. And the rich get richer……..
charlie d says
Sea Ray and Boston Whaler are both owned by the Brunswick corp
palmcoaster says
If Trump along can’t fix it, he shouldn’t have made false promises he would not comply with and just to get votes.
Maybe if his and Ivanka’s businesses would buy Made in the USA only, will create some jobs in the USA! Where are the wildly advertised taxing sanctions against companies that manufacture overseas and sell here. Where are the sanctions to China for fraudulent business practices against our manufacture. POTUS liar liar pants on fire and spy for communist regime.
Crusty Old Salt says
Very sad, but not surprising. Sea Ray is known for this. A person need look no farther than Brevard County to our South. Most of these blue collar workers have mortgage payments, car payments, rent payments, children to feed, etc. Very tough situation for these families. It is all about corporate profits and the bottom line.
Remember a few years back, Brunswick announced in a corporate news letter saving 3 to 5 million a year by consolidation of plants, Remember their obligation for “team member safety” in regards to the immediate need for a new parking lot for their employees that never happened.
Perhaps next time as you look to the sky and see their 30 or 40 million dollar corporate jet fly in to Flagler airport, think about these displaced workers and what they and their families are going through.
Get Hired! says
Brevard manufacturer hiring after dozens laid off in Flagler!
Link to News Story: http://www.mynews13.com/content/news/cfnews13/news/article.html/content/news/articles/cfn/2017/7/29/brevard_county_yacht.html
Crusty Old Salt says
This is the specific situation I was referring to. These “team members” as referred to by Sea Ray management are not disposable assets.
https://flaglerlive.com/51432/sea-ray-boats-brunswick/
JasonB says
Profits are up and moral is down, welcome to Trump’s America.