Exhibit
99.1
Brunswick
Corporation 1 N. Field Court Lake Forest, IL 60045
Telephone
847-735-4733 Facsimilie 847-735-4750
www.brunswick.com
|
Release: |
IMMEDIATE |
Contact: |
Kathryn
Chieger |
|
Vice
President-Corporate and Investor Relations |
Phone: |
847-735-4612 |
BRUNSWICK
ASSESSES IMPACT OF FUEL PRICES,
CONSUMER
CONFIDENCE AND HURRICANE
LAKE
FOREST, Ill., Sept. 20, 2005
--
Brunswick Corporation (NYSE: BC) announced today that the combined effects
of
high fuel prices, lower consumer confidence and Hurricane Katrina could
contribute to a slowing of the economy just as the marine industry moves into
the off season.
“Retail
demand for our marine products has remained robust relative to last year with
several of our boat brands registering double-digit retail growth in July and
August. Further, our pipeline inventories remain at healthy levels,” said
Brunswick Chairman and Chief Executive Officer George W. Buckley. “As we go into
the marine off season when retail activity tapers off, however, our financial
results are driven primarily by demand at the wholesale level, which is affected
by confidence in the economy. We are concerned that if high fuel prices, the
drop in consumer confidence and Katrina lead to slower overall economic
conditions, then wholesale demand for marine products could be affected. We
believe that in this confusing economic environment, it is prudent for us to
be
cautious and proactively manage pipeline inventories down even further still.
Therefore, we intend to cut production rates to position ourselves and our
marine customers in the best possible way entering the marine off season. Should
the economy not be impacted by this confluence of events, or in fact accelerate,
we will readjust production rates to meet stronger wholesale demand. In
addition, we have several new products scheduled to launch in the coming months
and healthy pipelines permit these products to reach the marketplace in a rapid
and effective fashion.”
(more)
“Given
this developing view, we have tempered the assumptions behind our previous
earnings estimates,” Buckley added. “We continue to see strong performances from
our fitness, electronics and bowling and billiards businesses, which are heading
into their stronger seasons. We will also benefit from a more favorable tax
structure brought on by investments in our global manufacturing footprint.
Lower
sales and fixed cost absorption in our marine businesses, however, will
temporarily offset those benefits. Most recently, we had estimated that diluted
earnings per share for 2005 would fall in the range of $3.30 to $3.40. This
is
compared with $2.67 per diluted share reported a year ago, which excludes $0.10
from a nonrecurring tax benefit recorded in the third quarter of 2004. Our
current thinking is that a range of $3.20 to $3.25 is more appropriate under
the
circumstances. For the quarter ending Sept. 30, 2005, we are estimating diluted
earnings per share in the range of $0.70 to $0.74, which compares to $0.65
in
the year-ago third quarter, excluding the previously mentioned $0.10 tax benefit
in 2004.” The company noted that estimates for 2005 exclude a $0.32 per diluted
share gain on the sale of securities recorded in the first quarter of the year,
as well as anticipated tax adjustments, which are estimated to be in the same
order of magnitude as the $0.10 per diluted share tax benefit recorded in the
third quarter of 2004.
Forward-Looking
Statements
Certain
statements in this press 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 filing. These risks include, but are not
limited to: the effect of a weak economy and stock market on consumer confidence
and thus the demand for marine, fitness, billiards and bowling equipment and
products; competitive pricing pressures; the success of new product
introductions; the ability to maintain market share in high-margin products;
competition from new technologies; imports from Asia and increased competition
from Asian competitors; the ability to obtain component parts from
(more)
suppliers;
the ability to maintain effective distribution; the financial strength of
dealers, distributors and independent boat builders; the ability to transition
and ramp up certain
manufacturing
operations within the time and budgets allowed; the ability to maintain product
quality and service standards expected by our customers; the ability
to
successfully
manage pipeline inventories; the success of global sourcing and supply chain
initiatives; the ability to successfully integrate acquisitions; the success
of
marketing and cost management programs; the ability to develop product
technologies that comply with regulatory requirements; the ability to complete
environmental remediation efforts and resolve claims and litigation at the
cost
estimated; the impact of weather conditions on demand for marine products and
retail bowling center revenues; shifts in currency exchange rates; adverse
foreign economic conditions; and the impact of interest rates and fuel prices
on
demand for marine products. Additional factors are included in the company’s
Annual Report on Form 10-K for 2004 and Quarterly Report on Form 10-Q for the
quarter ended June 30, 2005.
About
Brunswick
Headquartered
in Lake Forest, Ill., Brunswick Corporation endeavors to instill “Genuine
Ingenuity”Ô
in
all its leading consumer brands, including Mercury and Mariner outboard engines;
Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors;
Teignbridge propellers; MotoTron electronic controls; Northstar marine
electronics; Navman marine and GPS-based products; IDS dealer management
systems; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler, Crestliner,
HarrisKayot, Hatteras, Lowe, Lund, Maxum, Meridian, Ornvik, Palmetto,
Princecraft, Quicksilver, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton,
Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land
‘N’
Sea and Kellogg Marine parts and accessories distributor; Life Fitness, Hammer
Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment
and consumer products; Brunswick billiards tables; and Valley-Dynamo pool,
Air
Hockey and foosball tables. For more information, visit www.brunswick.com.
#
# #