New Morningstar Analyst Report - Brunswick Corporation

We believe the scale of Brunswick's operations, its dominant market share, and the strength of its brands all contribute to the company's narrow moat. However, the recession annihilated consumer spending on high-ticket discretionary items, and we do not expect demand in the boating industry to approach its peak levels experienced between 2005 and 2007 anytime soon. With that said, Brunswick has restructured its business and lowered its cost structure to accommodate the sharp decline in the boating industry. As a result, even with lower production, the firm should be able to return to profitability.