Fitness financials: Brunswick optimistic despite lowered S&P rating, plus Sport Chalet

Brunswick said it's optimistic despite a lowered S&P rating, and Sport Chalet signed an expanded senior credit facility.

Brunswick optimistic despite lowered S&P rating

Following Standard & Poor's Rating Services (S&P) lowering its corporate credit rating, Brunswick Corp. (NYSE: BC) said it does not believe the move will have any significant effect on it. S&P cut its long-term corporate-credit rating on Brunswick to BB+ from BBB- and its short-term corporate-credit rating to B from A-3.

Brunswick said in a statement, "Both our strong balance sheet and ability to generate cash provide us with substantial liquidity and serve us well in economic circumstances such as those affecting the United States. We will continue to focus on operating our businesses well in these market conditions."

The cut reflects "cyclical and secular trends in the recreational marine industry and their effect on Brunswick's credit quality," analyst Andy Liu said in a statement from S&P. S&P removed Brunswick from CreditWatch; it had posted the company there on June 30, saying that it might downgrade the ratings.

Brunswick noted that there are no borrowing constraints with its $650 million revolving credit facility as a result of the ratings action. It added that it does not anticipate any borrowings under the facility for the remainder of 2008, and intends to refinance its $250 million senior unsubordinated floating rate notes due 2009.

"We will continue to execute our previously announced plans to resize our company and reduce fixed costs by $300 million," it said in a statement. Brunswick expects to generate positive cash flow in 2008 and to end the year with cash in excess of $400 million, up from $267 million at the end of the first quarter of 2008.

Brunswick had $730 million of debt outstanding as of March 29.

Sport Chalet signs expanded senior credit facility

Sport Chalet (Nasdaq: SPCHA and SPCHB) said it has signed a new expanded senior credit facility with its existing lender, Bank of America, N.A. The new senior credit facility expands total availability to $70 million from $40 million and expires in June 2012.

"As we work to position our company for the future, and continue to take a long-term approach to managing our business, this increased capacity provides us with additional financial flexibility and enhances our capital structure," Craig Levra, chairman and CEO, said in a statement. "In addition, given the current environment, we believe our ability to secure this financing is a clear indication of the continued support that our lender has in our business strategy."

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on:


Fitness Financials: S&P cuts Brunswick rating, Hibbett Sports falls on downgrade

S&P cuts Brunswick rating amid weak environment Brunswick (NYSE: BC) announced last week that it would cut 1,000 jobs and close plants due to a weak operating environment as consumers reduce discretionary spending. The company has now announced it might cut loose an additional more

Outdoor financials: Wolverine says sales growth, cost controls boost Q2 profit, plus Sport Chalet

Wolverine says sales growth, cost controls boost Q2 profit Wolverine World Wide (NYSE: WWW), parent of Merrell and licensee of Patagonia Footwear, said sales growth and cost controls drove second-quarter profit up 8 percent. For the quarter ended June 14, net income rose to more

Fitness financials: RBC lowers '06 estimates for Nautilus, maintains outperform rating, plus TSA, Saucony/Stride Rite, Sport Chalet, Gaiam, Sears, Reebok

RBC lowers '06 estimates for Nautilus, maintains outperform ratingDespite lowering its 2006 estimate for Nautilus (NYSE: NLS), RBC Capital Markets is maintaining its outperform rating for the fitness company, anticipating that it will prove resilient to any softening in consumer more

Fitness financials: Q4 sales for Brunswick's fitness segment drop 20 percent, plus Under Armour, Sport Chalet

Q4 sales for Brunswick's fitness segment drop 20 percent Brunswick Corp. (NYSE: BC) posted a fourth-quarter loss as sales in its core boat market continue to slide amid decreased demand for big-ticket recreational items. Its fitness division didn't fare any better, posting a more

Fitness financials: Brunswick upgraded by Standard & Poor’s, plus Collective Brands, Hanesbrands

Brunswick upgraded by Standard & Poor’s Standard & Poor's Ratings Services said it upgraded its rating outlook on Brunswick (NYSE: BC), parent of Life Fitness, to stable from negative based on the belief that the company has adequate liquidity for next year. "The outlook more

Fitness financials: Brunswick rating upgraded by Moody’s, plus Hibbett, Foot Locker, Sears

Brunswick rating upgraded by Moody’s Moody's Investors Service upgraded Brunswick Corp.'s (NYSE: BC) rating outlook to "stable" from "negative" based on a belief that Brunswick's credit will not deteriorate further and might even improve over the near- to midterm. It is the more

Brunswick Comments on Rating Agency Action

Brunswick Corporation (NYSE: BC) commented today on the announcement by Standard & Poor's Rating Services (S&P) that it had lowered its corporate credit rating on Brunswick from BBB- to BB+. Brunswick issued the following statement:We do not believe today's announcement by S&P more

Outdoor financials: S&P places parents’ rating under review, plus Garmin

S&P places parents’ rating under review Standard & Poor's Ratings Services said it has placed its credit ratings on Liberty Media Corp. (NYSE: LINTA and LCAPA) under review because of Liberty's spinoff plans. Liberty is the parent of The agency more

Fitness financials: Cybex goes on a road show, plus The Sports Authority, Costco, Amer Sports, Sport Chalet, Brunswick

Cybex off on a road showCybex International (AMEX: CYB) will hit the road in its first tour directed at analysts and investors in a number of years. The company said it plans corporate-focused presentations in coordination with public relations firm, Porter, LeVay and Rose, which more