Corporate and Financial
Brunswick Reports First Quarter Results
WEAK MARKET CONDITIONS CONTINUE; COMPANY MAINTAINS FOCUS ON CASH FLOW
LAKE FOREST, Ill., April 30 /PRNewswire-FirstCall/ -- Brunswick
Corporation (NYSE: BC) reported today results for the first quarter of 2009:
- Total sales of $734.7 million were down 45 percent versus 2008,
primarily the result of marine sales that dropped by 52 percent from
year-ago levels.
- A net loss of $184.2 million, or $2.08 per diluted share, which
includes $39.6 million, or $0.45 per diluted share, of restructuring
charges and $0.40 per diluted share of non-cash charges for special
tax items.
- Cash on hand at quarter's end was $359.1 million, up from the 2008
year-end balance of $317.5 million. The revolving credit facility
remained undrawn throughout the quarter.
- Total restructuring charges for 2009 are estimated to be approximately
$75 million, or $0.85 per diluted share.
- The company expects to generate additional 2009 cost reductions of
approximately $40 million, aggregating to savings of $240 million for
the year versus the $200 million of savings previously announced.
"Our businesses continued to be under pressure from a variety of harsh
economic factors that affected both domestic and international demand for our
products, especially in our recreational marine markets," said Brunswick's
Chairman and Chief Executive Officer Dustan E. McCoy.
"The year began as expected with the continuation of unprecedented low
levels of demand experienced in the second half of 2008, especially during the
fourth quarter. Retail demand for marine products was impacted in the first
quarter of 2009 by declining consumer confidence and the tightening of
consumer credit terms by national lenders. As our dealers work through this
difficult economic climate, we continue to reduce our wholesale shipments to
reduce the number of boats and engines on their showroom floors.
Additionally, we experienced lower equipment orders from our fitness and
bowling products customers," McCoy said.
"Although these factors had a negative effect on our revenues and
earnings, we are successfully managing our businesses for cash and maintained
excellent levels of liquidity throughout the quarter. This was demonstrated
by the $359 million of cash on our balance sheet at the end of the quarter, a
$42 million increase from year-end levels," McCoy added.
First Quarter Results
For the first quarter of 2009, the company reported net sales of $734.7
million, down from $1,346.8 million a year earlier. For the quarter, the
company reported an operating loss of $127.5 million, which included $39.6
million of restructuring charges. In the first quarter of 2008, the company
had operating earnings of $10.3 million, which included $22.2 million of
restructuring charges.
For the first quarter of 2009, Brunswick reported a net loss of $184.2
million, or $2.08 per diluted share, as compared with net earnings of $13.3
million, or $0.15 per diluted share, for the first quarter of 2008. Diluted
loss per share for the first quarter of 2009 included restructuring charges of
$39.6 million, or $0.45 per diluted share, and a $0.40 per diluted share
charge for special tax items, primarily related to increases in state and
foreign deferred tax valuation allowances resulting from cumulative losses
reported by the company. Diluted earnings per share, for the first quarter of
2008, included $22.2 million, or $0.16 per diluted share, of restructuring
charges and an investment sale gain of $0.10 per diluted share.
Change in Segment Reporting
During the first quarter of 2009, the company realigned the management of
its marine service, parts and accessories businesses. The Boat segment's
parts and accessories businesses of Attwood, Land 'N' Sea, Benrock, Inc.,
Kellogg Marine, Inc. and Diversified Marine Products, L.P. are now being
managed by the Marine Engine segment's service and parts business leaders. As
a result, the marine service, parts and accessories operating results
previously reported in the Boat segment are now being reported in the Marine
Engine segment and the results for 2007 and 2008 have been restated (by
quarter) to reflect this change and are attached as an appendix to this news
release.
Marine Engine Segment
The Marine Engine segment, consisting of the Mercury Marine Group,
including the marine service, parts and accessories businesses, reported net
sales of $343.9 million in the first quarter of 2009, down 45 percent from
$628.6 million in the year-ago first quarter. International sales, which
represented 43 percent of total segment sales (net of Marine eliminations) in
the quarter, declined by 45 percent on a year-to-year basis. For the quarter,
the Marine Engine segment reported an operating loss of $50.6 million,
including restructuring charges of $11.7 million. This compares with
operating earnings of $33.6 million in the year-ago quarter, including $1.5
million of restructuring charges.
Sales were off across all Marine Engine operations with sterndrive engines
experiencing a greater sales decline than outboard engines. However, sales
from the marine service, parts and accessories businesses were down
significantly less than our other marine businesses.
Mercury's manufacturing facilities continued to cut production rates and
take plant furloughs during the quarter in response to lower retail demand and
to reduce pipeline levels. Lower sales and reduced fixed-cost absorption on
lower production had an adverse effect on operating earnings, which were
partially offset by reduced expenses.
Boat Segment
The Boat segment is comprised of the Brunswick Boat Group and includes 17
boat brands. The Boat segment reported net sales for the first quarter of
2009 of $205.3 million, down 64 percent compared with $565.6 million in the
first quarter of 2008. International sales, which represented 40 percent of
total segment sales in the quarter, decreased by 59 percent during the period.
For the first quarter of 2009, the Boat segment reported an operating loss of
$72.3 million, including restructuring charges of $25.0 million. This
compares with an operating loss of $17.4 million, including restructuring
charges of $13.8 million in the first quarter of 2008.
Boat manufacturing facilities also continued to significantly cut
production rates and take plant furloughs during the quarter to address
inventory levels held throughout the pipeline. Lower sales and reduced
fixed-cost absorption on lower production had an adverse effect on operating
earnings, which were partially offset by reduced expenses.
Fitness Segment
The Fitness segment is comprised of the Life Fitness Division, which
manufactures and sells Life Fitness and Hammer Strength fitness equipment.
Fitness segment sales in the first quarter of 2009 totaled $118.6 million,
down 21 percent from $149.2 million in the year-ago quarter. International
sales, which represented 45 percent of total segment sales in the quarter,
declined by 16 percent on a year-to-year basis. For the quarter, the Fitness
segment reported operating earnings of $0.3 million, including $1.0 million of
restructuring charges. This compares with operating earnings of $8.1 million
in the year-ago quarter.
Commercial equipment sales, which account for the largest percentage of
Fitness segment sales, declined in the quarter as gym and fitness club
operators remained cautious about ordering equipment. Sales of consumer
exercise equipment were down even more year-over-year, reflecting the effects
of the weak economy. Operating earnings reflected the unfavorable effect of
the reduced sales, which was partially mitigated by reduced expenses.
Bowling & Billiards Segment
The Bowling & Billiards segment is comprised of Brunswick retail bowling
centers; bowling equipment and products; and billiards, Air Hockey and
foosball tables. Segment sales in the first quarter of 2009 totaled $99.9
million, down 12 percent compared with $113.6 million in the year-ago quarter.
For the quarter, the segment reported operating earnings of $10.6 million,
including restructuring charges of $0.8 million. This compares with operating
earnings of $0.9 million, including restructuring charges of $5.6 million in
the first quarter of 2008.
Retail bowling revenues declined by mid-single digits during the quarter.
The bowling products and billiards businesses experienced greater sales
declines, as bowling center operators and billiards retail customers remained
cautious about purchases. Operating earnings benefited from cost reductions
and lower restructuring charges in the segment, partially offset by lower
revenue levels.
Outlook
"We are not planning for any meaningful economic recovery in 2009 and our
near-term focus remains clear, which is to: maintain strong liquidity without
additional borrowings, take all appropriate actions to maintain dealer health
and position ourselves to exit this global downturn as a stronger company,"
McCoy said.
"Our plan requires that we continue to: (1) manage our businesses for
cash, with a focus on inventory reductions, (2) produce and sell at wholesale
below retail sales levels, (3) evaluate our cost structure and take the
appropriate actions necessary to match the overall demand in the marketplace
and (4) execute against our core strategic platforms, which will enable us to
advance in our industries and maintain our leading brands and market position.
"Our full-year 2009 results will be negatively affected by lower sales
levels, reduced fixed-cost absorption, and higher pension-related expenses
when compared with 2008, as well as by continuing restructuring charges.
Partially offsetting these factors will be approximately $240 million of 2009
cost reductions resulting from the full-year effect of actions taken in 2008,
as well as further cost reduction activities initiated or planned in 2009.
And although our 2009 earnings will be down significantly compared with 2008
earnings before restructuring charges, impairments, and special tax items, it
remains our goal to exit 2009 with cash at or above the amount that we
reported on our balance sheet at year-end 2008, without increased borrowings.
"As each day passes and we successfully execute against these actions, we
become increasingly confident that we are well positioned to benefit from an
economic recovery," McCoy said.
Conference Call Scheduled
Brunswick will host a conference call today at 10 a.m. CDT, hosted by
Dustan E. McCoy, chairman and chief executive officer, Peter B. Hamilton,
senior vice president and chief financial officer, and Bruce J. Byots, vice
president - corporate and investor relations.
The call will be broadcast over the Internet at www.brunswick.com. To
listen to the call, go to the Web site at least 15 minutes before the call to
register, download and install any needed audio software.
Security analysts and investors wishing to participate via telephone
should call (800) 857-1754 (passcode: Brunswick Q1). Callers outside North
America should call +1 (517) 308-9227 to be connected. These numbers can be
accessed 15 minutes before the call begins, as well as during the call. A
replay of the conference call will be available through midnight CDTThursday,
May 7, 2009, by calling (888) 445-8680 or (203) 369-3155. The replay will
also be available at www.brunswick.com.
Forward-Looking Statements
Certain statements in this news release are forward looking as defined in
the Private Securities Litigation Reform Act of 1995. These statements
involve certain risks and uncertainties that may cause actual results to
differ materially from expectations as of the date of this news release.
These risks include, but are not limited to: the effect of (i) the amount of
disposable income available to consumers for discretionary purchases, and (ii)
the level of consumer confidence on the demand for marine, fitness, billiards
and bowling equipment, products and services; the ability to successfully
complete restructuring efforts in the timeframe and cost anticipated; the
ability to successfully complete the disposition of non-core assets; the
effect of higher product prices due to technology changes and added product
features and components on consumer demand; the effect of competition from
other leisure pursuits on the level of participation in boating, fitness,
bowling and billiards activities; the effect of interest rates and fuel prices
on demand for marine products; the ability to successfully manage pipeline
inventories; the financial strength of dealers, distributors and independent
boat builders; the ability to maintain mutually beneficial relationships with
dealers, distributors and independent boat builders; the ability to maintain
effective distribution and to develop alternative distribution channels
without disrupting incumbent distribution partners; the ability to maintain
market share, particularly in high-margin products; the success of new product
introductions; the ability to maintain product quality and service standards
expected by customers; competitive pricing pressures; the ability to develop
cost-effective product technologies that comply with regulatory requirements;
the ability to transition and ramp up certain manufacturing operations within
time and budgets allowed; the ability to successfully develop and distribute
products differentiated for the global marketplace; shifts in currency
exchange rates; adverse foreign economic conditions; the success of global
sourcing and supply chain initiatives; the ability to obtain components and
raw materials from suppliers; increased competition from Asian competitors;
competition from new technologies; the ability to complete environmental
remediation efforts and resolve claims and litigation at the cost estimated;
and the effect of weather conditions on demand for marine products and retail
bowling center revenues. Additional factors are included in the company's
Annual Report on Form 10-K for 2008.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to
instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including
Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and
inboard engines; MotorGuide trolling motors; Teignbridge propellers; Arvor,
Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay,
Harris, Hatteras, Kayot, Lowe, Lund, Maxum, Meridian, Ornvik, Princecraft,
Quicksilver, Rayglass, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant
boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine,
Diversified Marine and Benrock parts and accessories distributors; Life
Fitness and Hammer Strength fitness equipment; Brunswick bowling centers,
equipment and consumer products; Brunswick billiards tables; and Dynamo,
Tornado and Valley pool tables, Air Hockey and foosball tables. For more
information, visit www.brunswick.com.
Brunswick Corporation
Comparative Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
------------------
April 4, March 29,
2009 2008 % Change
---- ---- --------
Net sales $734.7 $1,346.8 -45%
Cost of sales 643.5 1,077.3 -40%
Selling,
general and
administrative
expense 155.2 203.1 -24%
Research and
development
expense 23.9 33.9 -29%
Restructuring,
exit and
impairment
charges 39.6 22.2 78%
---- ----
Operating
earnings
(loss) (127.5) 10.3 NM
Equity
earnings
(loss) (3.2) 4.8 NM
Investment
sale gain - 19.7 NM
Other income
(expense), net (1.4) 1.1 NM
---- ---
Earnings
(loss) before
interest and
income taxes (132.1) 35.9 NM
Interest
expense (18.2) (11.5) -58%
Interest income 0.5 1.4 -64%
--- ---
Earnings
(loss) before
income taxes (149.8) 25.8 NM
Income tax
provision 34.4 12.5
---- ----
Net earnings
(loss) $(184.2) $13.3 NM
======= =====
Earnings (loss)
per common share:
Basic $(2.08) $0.15
Diluted $(2.08) $0.15
Weighted average
shares used for
computation of:
Basic earnings
(loss) per
common share 88.4 88.2
Diluted
earnings
(loss) per
common share 88.4 88.3
Effective tax
rate (1) -23.0% 48.4%
Supplemental Information
------------------------
Diluted net
earnings
(loss) $(2.08) $0.15
Restructuring,
exit and
impairment
charges (2) 0.45 0.16
Investment
sale gain, net
of tax - (0.10)
Special tax
items 0.40 -
---- ---
Diluted net
earnings
(loss), as
adjusted $(1.23) $0.21
====== =====
(1) The change in the effective tax rate in the first quarter of 2009
was primarily due to increases in state and foreign deferred tax
valuation allowances resulting from cumulative losses reported
by the company.
(2) The 2009 Restructuring, exit and impairment charges assume no
tax benefit, while the 2008 Restructuring, exit and impairment
charges include a tax benefit.
Brunswick Corporation
Selected Financial Information
(in millions)
(unaudited)
Segment Information (1)
Three Months Ended
------------------
Net Operating Operating
Sales Earnings (2) Margin
----- ------------ ----------
April 4, March 29, % April 4, March 29, % April 4, March 29,
2009 2008 Change 2009 2008 Change 2009 2008
---- ---- ------ ---- ---- ------ ---- ----
Marine
Engine $343.9 $628.6 -45% $(50.6) $33.6 NM -14.7% 5.3%
Boat 205.3 565.6 -64% (72.3) (17.4) NM -35.2% -3.1%
Marine
Elimi-
nations (33.0) (110.2) - -
----- ------ --- ---
Total
Marine 516.2 1,084.0 -52% (122.9) 16.2 NM -23.8% 1.5%
Fitness 118.6 149.2 -21% 0.3 8.1 -96% 0.3% 5.4%
Bowling &
Billiards 99.9 113.6 -12% 10.6 0.9 NM 10.6% 0.8%
Corp/Other - - (15.5) (14.9) -4%
--- --- ----- -----
Total $734.7 $1,346.8 -45% $(127.5) $10.3 NM -17.4% 0.8%
====== ======== ======= =====
(1) During the first quarter of 2009, the company realigned the
management of its marine service, parts and accessories businesses.
The Boat segment's parts and accessories businesses of Attwood,
Land 'N' Sea, Benrock, Inc., Kellog Marine, Inc. and Diversified
Marine Products, L.P. are now being managed by the Marine Engine
segment's service and parts business leaders. As a result, the parts
and accessories businesses operating results previously reported in
the Boat segment are now being reported in the Marine Engine segment.
Segment results have been restated for all periods presented to
reflect the change in Brunswick's reported segments.
(2) Operating earnings in the first quarter of 2009 include $39.6
million of pretax restructuring, exit and impairment charges.
The $39.6 million charge consists of $11.7 million in the Marine
Engine segment, $25.0 million in the Boat segment, $1.0 million
in the Fitness segment, $0.8 million in the Bowling & Billiards
segment and $1.1 million in Corp/Other. Operating earnings in the
first quarter of 2008 include $22.2 million of pretax restructuring,
exit and impairment charges. The $22.2 million charge consists of
$1.5 million in the Marine Engine segment, $13.8 million in the Boat
segment, $5.6 million in the Bowling & Billiards segment and
$1.3 million in Corp/Other.
Brunswick Corporation
Comparative Condensed Consolidated Balance Sheets
(in millions)
April 4, December 31, March 29,
2009 2008 2008
---- ---- ----
(unaudited) (unaudited)
Assets
Current assets
Cash and cash
equivalents $359.1 $317.5 $267.3
Accounts and notes
receivables, net 381.9 444.8 648.8
Inventories
Finished goods 371.7 457.7 494.3
Work-in-process 232.6 248.2 346.0
Raw materials 97.0 105.8 143.9
---- ----- -----
Net inventories 701.3 811.7 984.2
Deferred income
taxes 13.3 103.2 241.9
Prepaid expenses
and other 48.8 59.7 57.5
---- ---- ----
Current assets 1,504.4 1,736.9 2,199.7
------- ------- -------
Net property 875.8 917.6 1,034.4
----- ----- -------
Other assets
Goodwill, net 287.8 290.9 678.4
Other intangibles,
net 83.4 86.6 242.6
Investments 70.9 75.4 118.3
Other long-term assets 114.3 116.5 138.0
----- ----- -----
Other assets 556.4 569.4 1,177.3
----- ----- -------
Total assets $2,936.6 $3,223.9 $4,411.4
======== ======== ========
Liabilities and
shareholders' equity
Current liabilities
Short-term debt $2.4 $3.2 $0.9
Accounts payable 238.2 301.3 488.0
Accrued expenses 653.7 696.7 832.2
----- ----- -----
Current
liabilities 894.3 1,001.2 1,321.1
Long-term debt 728.1 728.5 729.1
Other long-term
liabilities 766.9 764.3 444.2
Common shareholders'
equity 547.3 729.9 1,917.0
----- ----- -------
Total liabilities
and shareholders'
equity $2,936.6 $3,223.9 $4,411.4
======== ======== ========
Supplemental Information
------------------------
Debt-to-capitalization
rate 57.2% 50.1% 27.6%
Brunswick Corporation
Comparative Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended
------------------
April 4, March 29,
2009 2008
---- ----
Cash flows from operating activities
Net earnings (loss) $(184.2) $13.3
Depreciation and amortization 41.6 44.3
Deferred income taxes 35.0 9.4
Changes in non-cash current assets
and current liabilities 79.4 (136.6)
Impairment charges 4.0 8.4
Income taxes 69.1 (1.2)
Other, net 5.6 (11.7)
--- -----
Net cash provided by (used for)
operating activities 50.5 (74.1)
---- -----
Cash flows from investing activities
Capital expenditures (7.2) (28.3)
Investments (1.4) (4.1)
Proceeds from investment sale - 40.4
Proceeds from sale of property,
plant and equipment 0.9 1.7
Other, net (0.2) 0.2
---- ---
Net cash provided by (used for)
investing activities (7.9) 9.9
---- ---
Cash flows from financing activities
Net issuances (repayments) of
short-term debt (0.7) 0.3
Payments of long-term debt
including current maturities (0.3) (0.2)
---- ----
Net cash provided by (used for)
financing activities (1.0) 0.1
---- ---
Net increase (decrease) in cash and
cash equivalents 41.6 (64.1)
Cash and cash equivalents at
beginning of period 317.5 331.4
----- -----
Cash and cash equivalents at end of
period $359.1 $267.3
====== ======
Free Cash Flow
Net cash provided by (used for)
operating activities $50.5 $(74.1)
Net cash provided by (used for):
Capital expenditures (7.2) (28.3)
Proceeds from investment sale - 40.4
Proceeds from sale of property,
plant and equipment 0.9 1.7
Other, net (0.2) 0.2
---- ---
Total free cash flow $44.0 $(60.1)
===== ======
Brunswick Corporation Appendix
Segment Restatement
2007 - 2008
(in millions)
(unaudited)
First Quarter - Year to Date
----------------------------
Net Sales Operating Earnings Restructuring
--------- ------------------ -------------
2007 2008 2007 2008 2007 2008
---- ---- ---- ---- ---- ----
Marine Engine $635.9 $628.6 $39.4 $33.6 $3.4 $1.5
Boat 623.9 565.6 14.8 (17.4) 4.2 13.8
Marine
eliminations (124.4) (110.2) - - - -
------ ------ --- --- --- ---
Total Marine 1,135.4 1,084.0 54.2 16.2 7.6 15.3
Fitness 145.0 149.2 8.1 8.1 - -
Bowling &
Billiards 105.8 113.6 8.3 0.9 - 5.6
Eliminations (0.1) - - - - -
Corporate/Other - - (17.6) (14.9) - 1.3
-------- -------- ----- ----- --- ---
Total $1,386.1 $1,346.8 $53.0 $10.3 $7.6 $22.2
======== ======== ===== ===== ==== =====
Brunswick Corporation Appendix
Segment Restatement
2007 - 2008
(in millions)
(unaudited)
Second Quarter - Year to Date
-----------------------------
Net Sales Operating Earnings Restructuring
--------- ------------------ -------------
2007 2008 2007 2008 2007 2008
---- ---- ---- ---- ---- ----
Marine Engine $1,397.6 $1,352.2 $128.2 $92.5 $3.4 $19.1
Boat 1,251.0 1,157.3 25.6 (59.6) 5.2 51.4
Marine
eliminations (237.5) (207.2) - - - -
------ ------ --- --- --- ---
Total Marine 2,411.1 2,302.3 153.8 32.9 8.6 70.5
Fitness 289.0 306.1 15.5 16.3 - 1.3
Bowling &
Billiards 209.0 224.0 5.6 (18.9) - 25.4
Eliminations (0.1) (0.2) - - - -
Corporate/Other - - (35.6) (37.2) 0.1 8.1
-------- -------- ----- ----- --- ---
Total $2,909.0 $2,832.2 $139.3 $(6.9) $8.7 $105.3
======== ======== ====== ===== ==== ======
Second Quarter - Quarter to Date
--------------------------------
Net Sales Operating Earnings Restructuring
--------- ------------------ -------------
2007 2008 2007 2008 2007 2008
---- ---- ---- ---- ---- ----
Marine Engine $761.7 $723.6 $88.8 $58.9 $- $17.6
Boat 627.1 591.7 10.8 (42.2) 1.0 37.6
Marine
eliminations (113.1) (97.0) - - - -
------ ----- --- --- --- ---
Total Marine 1,275.7 1,218.3 99.6 16.7 1.0 55.2
Fitness 144.0 156.9 7.4 8.2 - 1.3
Bowling &
Billiards 103.2 110.4 (2.7) (19.8) - 19.8
Eliminations - (0.2) - - - -
Corporate/Other - - (18.0) (22.3) 0.1 6.8
--- --- ----- ----- --- ---
Total $1,522.9 $1,485.4 $86.3 $(17.2) $1.1 $83.1
======== ======== ===== ====== ==== =====
Brunswick Corporation Appendix
Segment Restatement
2007 - 2008
(in millions)
(unaudited)
Third Quarter - Year to Date
----------------------------
Net Sales Operating Earnings Restructuring
--------- ------------------ -------------
2007 2008 2007 2008 2007 2008
---- ---- ---- ---- ---- ----
Marine Engine $2,040.2 $1,867.4 $177.4 $82.8 $4.8 $37.7
Boat 1,780.2 1,471.5 (66.4) (595.9) 74.9 543.0
Marine
eliminations (347.8) (270.6) - - - -
------ ------ --- --- --- ---
Total Marine 3,472.6 3,068.3 111.0 (513.1) 79.7 580.7
Fitness 439.2 467.7 27.3 26.6 - 2.1
Bowling &
Billiards 323.6 335.1 5.4 (29.3) - 40.8
Eliminations (0.2) (0.1) - - - -
Corporate/Other - - (50.7) (57.4) 0.1 15.9
-------- -------- ----- ----- --- ----
Total $4,235.2 $3,871.0 $93.0 $(573.2) $79.8 $639.5
======== ======== ===== ======= ===== ======
Third Quarter - Quarter to Date
-------------------------------
Net Sales Operating Earnings Restructuring
--------- ------------------ -------------
2007 2008 2007 2008 2007 2008
---- ---- ---- ---- ---- ----
Marine Engine $642.6 $515.2 $49.2 $(9.7) $1.4 $18.6
Boat 529.2 314.2 (92.0) (536.3) 69.7 491.6
Marine
eliminations (110.3) (63.4) - - - -
------ ----- --- --- --- ---
Total Marine 1,061.5 766.0 (42.8) (546.0) 71.1 510.2
Fitness 150.2 161.6 11.8 10.3 - 0.8
Bowling &
Billiards 114.6 111.1 (0.2) (10.4) - 15.4
Eliminations (0.1) 0.1 - - - -
Corporate/Other - - (15.1) (20.2) - 7.8
--- --- ----- ----- --- ---
Total $1,326.2 $1,038.8 $(46.3) $(566.3) $71.1 $534.2
======== ======== ====== ======= ===== ======
Brunswick Corporation Appendix
Segment Restatement
2007 - 2008
(in millions)
(unaudited)
Fourth Quarter - Year to Date
-----------------------------
Net Sales Operating Earnings Restructuring
--------- ------------------ -------------
2007 2008 2007 2008 2007 2008
---- ---- ---- ---- ---- ----
Marine Engine $2,639.5 $2,207.6 $195.8 $69.9 $4.8 $36.9
Boat 2,367.5 1,719.5 (93.5) (655.3) 80.9 582.4
Marine
eliminations (436.2) (306.0) - - - -
----- ----- --- --- --- ---
Total Marine 4,570.8 3,621.1 102.3 (585.4) 85.7 619.3
Fitness 653.7 639.5 59.7 52.2 - 3.3
Bowling &
Billiards 446.9 448.3 16.5 (12.7) 2.8 44.6
Eliminations (0.2) (0.2) - - - -
Corporate/Other - - (71.3) (65.7) 0.1 21.2
--- --- ---- ---- --- ----
Total $5,671.2 $4,708.7 $107.2 $(611.6) $88.6 $688.4
======= ======= ===== ===== ==== =====
Fourth Quarter - Quarter to Date
--------------------------------
Net Sales Operating Earnings Restructuring
--------- ------------------ -------------
2007 2008 2007 2008 2007 2008
---- ---- ---- ---- ---- ----
Marine Engine $599.3 $340.2 $18.4 $(12.9) $- $(0.8)
Boat 587.3 248.0 (27.1) (59.4) 6.0 39.4
Marine
eliminations (88.4) (35.4) - - - -
---- ---- --- --- --- ---
Total Marine 1,098.2 552.8 (8.7) (72.3) 6.0 38.6
Fitness 214.5 171.8 32.4 25.6 - 1.2
Bowling &
Billiards 123.3 113.2 11.1 16.6 2.8 3.8
Eliminations - (0.1) - - - -
Corporate/Other - - (20.6) (8.3) - 5.3
--- --- ---- --- --- ---
Total $1,436.0 $837.7 $14.2 $(38.4) $8.8 $48.9
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SOURCE: Brunswick Corporation
CONTACT: Bruce Byots, Vice President - Corporate and Investor Relations,
+1-847-735-4612, or Daniel Kubera, Director - Media Relations and Corporate
Communications,
+1-847-735-4617,
daniel.kubera@brunswick.com
Web Site: http://www.brunswick.com
