It was an up and down quarter for companies with a presence in Flagler County.Sea Ray Boats parent company Brunswick Corp., based in Lake Forest, Ill., reported second-quarter earnings of 99 cents per diluted share, compared with earnings of $1.12 per share for the same period in 2005. Company officials cited a slowdown in consumer spending as part of the 27 percent decline in profits.
"We are pleased with our second-quarter results given the increasingly difficult economic environment in which consumers are deferring expenditures for discretionary items, a factor affecting retail demand, especially for marine products," Brunswick chairman and chief executive officer Dustan McCoy said in a conference call with investors and analysts.
Thursday's quarterly earnings report follows a release by the company earlier this month that announced a reduction in earnings guidance. At that time, McCoy said the company experienced "significant declines in retail demand" during the second quarter and it now plans to reduce production levels at its facilities. The company lowered its previous earnings expectations from between $3 and $3.15 per diluted share to between $2.40 and $2.55.
McCoy said the company's boat segment, which includes its Flagler County Sea Ray plant and a Boston Whaler facility in Volusia County, posted net sales in the second quarter of $770 million, a 3 percent increase compared with the second quarter in 2005.
"We reduced production and increased promotional efforts in select product lines to manage pipeline inventories during the quarter," he said.
The second quarter of 2006 was more favorable to Jacksonville-based Rayonier Inc. The company owns approximately 29,000 acres of timberlands in Flagler County.
The company reported income of $43 million for the quarter, compared to income of $23 million in the first quarter of 2006 and $42 million for the second quarter of 2005.
"Second-quarter results reflect the strength and balance of our three core businesses as demand and prices remained strong, particularly for cellulose specialties and U.S. timber," Rayonier chairman, president and chief executive officer Lee Nutter said in a news release.
During the quarter, the company announced it has secured long-term contracts with customers for nearly 80 percent of its high-value cellulose specialties production which will account for $2 billion in revenue at current pricing.
The company said it expects business to be even better in the second half of 2006.
"As we previously indicated, the second half of the year should be much stronger than the first due to increased real estate revenues -- particularly from transactions involving our high-value development properties -- and strong performance fibers income," Nutter said.
