Brunswick to Close Bike Plant, Cut 280 Jobs

Brunswick Corp., a leading maker of recreation products, plans to close an Illinois bicycle plant and cut 280 jobs, or about 10% of its bike unit work force, as it moves some work to Mexico to reduce costs. The company, which is also the top U.S. maker of pleasure boats and bowling balls, said it will relocate bike production from its Effingham, Ill., plant this month to existing sites in Olney, Ill., and Mexico. Brunswick also said second-quarter earnings rose less than 1%, to $83.4 million, or 83 cents a diluted share, from $82.9 million, or 83 cents, in the year-earlier quarter. Results were helped by strong profit growth in Brunswick’s marine unit. Revenue rose 10%, to $1.11 billion from $1.01 billion in the year-earlier quarter. The company’s shares fell 25 cents to close at $21.38 on the NYSE. The stock has fallen about 34% in the last year.