Brunswick Corporation 1 N. Field Court Lake Forest, IL 60045 |
Telephone 847.735.4700 Facsimile 847.735.4750 |
www.brunswick.com |
Release: | IMMEDIATE |
Contact: | Kathryn
Chieger
Vice
President - Corporate and Investor Relations
|
Phone: | 847-735-4612 |
Brunswick
Corporation
|
||||||||||
Comparative
Consolidated Statements of Income
|
||||||||||
(in
millions, except per share data)
|
||||||||||
(unaudited)
|
||||||||||
Three
Months Ended September 30
|
||||||||||
2005
|
2004
|
%
Change
|
||||||||
Net
sales
|
$
|
1,434.6
|
$
|
1,273.2
|
13
|
%
|
||||
Cost
of sales
|
1,101.6
|
956.2
|
15
|
%
|
||||||
Selling,
general and administrative expense
|
191.3
|
186.5
|
3
|
%
|
||||||
Research
and development expense
|
35.8
|
31.2
|
15
|
%
|
||||||
Operating
earnings
|
105.9
|
99.3
|
7
|
%
|
||||||
Interest
expense
|
(13.5
|
)
|
(12.1
|
)
|
-12
|
%
|
||||
Other
income
|
7.0
|
4.4
|
59
|
%
|
||||||
Earnings
before income taxes
|
99.4
|
91.6
|
9
|
%
|
||||||
Income
tax provision
|
11.0
|
18.7
|
||||||||
Net
earnings
|
$
|
88.4
|
$
|
72.9
|
21
|
%
|
||||
Earnings
per common share:
|
||||||||||
Basic
|
$
|
0.90
|
$
|
0.76
|
18
|
%
|
||||
Diluted
|
0.89
|
0.75
|
19
|
%
|
||||||
Weighted
average number of shares used for computation of:
|
||||||||||
Basic
earnings per share
|
98.1
|
96.2
|
2
|
%
|
||||||
Diluted
earnings per share
|
99.3
|
97.7
|
2
|
%
|
||||||
Effective
tax rate (1)
|
11.1
|
%
|
20.5
|
%
|
||||||
(1) The
decrease in the effective tax rate for the three months ended September
30, 2005, was primarily due to non-recurring
tax
benefits arising from a change in assertions on indefinitely reinvested
earnings in selected international operations,
refined
tax planning strategies for research and foreign export tax benefits,
and
projected higher foreign earnings in lower
effective-tax-rate
jurisdictions.
|
Brunswick
Corporation
|
||||||||||
Comparative
Consolidated Statements of Income
|
||||||||||
(in
millions, except per share data)
|
||||||||||
(unaudited)
|
||||||||||
Nine
Months Ended September 30
|
||||||||||
2005
|
2004
|
%
Change
|
||||||||
Net
sales
|
$
|
4,434.3
|
$
|
3,895.5
|
14
|
%
|
||||
Cost
of sales
|
3,346.8
|
2,913.4
|
15
|
%
|
||||||
Selling,
general and administrative expense
|
604.7
|
571.5
|
6
|
%
|
||||||
Research and
development expense
|
106.1
|
93.3
|
14
|
%
|
||||||
Operating
earnings
|
376.7
|
317.3
|
19
|
%
|
||||||
Interest
expense
|
(39.6
|
)
|
(32.6
|
)
|
21
|
%
|
||||
Investment
sale gain (1)
|
38.7
|
-
|
||||||||
Other
income
|
23.0
|
13.0
|
77
|
%
|
||||||
Earnings
before income taxes
|
398.8
|
297.7
|
34
|
%
|
||||||
Income
tax provision
|
101.7
|
86.7
|
||||||||
Net
earnings
|
$
|
297.1
|
$
|
211.0
|
41
|
%
|
||||
Earnings
per common share:
|
||||||||||
Basic
|
$
|
3.03
|
$
|
2.22
|
36
|
%
|
||||
Diluted
|
$
|
3.00
|
$
|
2.18
|
38
|
%
|
||||
Weighted
average number of shares used for computation of:
|
||||||||||
Basic
earnings per share
|
97.9
|
95.1
|
3
|
%
|
||||||
Diluted
earnings per share
|
99.2
|
96.8
|
2
|
%
|
||||||
Effective
tax rate (2)
|
25.5
|
%
|
29.1
|
%
|
||||||
(1)
The Company sold its investment in MarineMax, Inc., pursuant to
a
registered public offering by MarineMax.
|
||||||||||
(2)
The decrease in the effective tax rate for the nine months ended
September
30, 2005, was primarily due to non-recurring
tax
benefits arising from a change in assertions on indefinitely
reinvested
earnings in selected international operations,
refined
tax planning strategies for research and foreign export tax
benefits, and
projected higher foreign earnings in lower
effective-tax-rate
jurisdictions.
|
Brunswick
Corporation
|
||||||||||||||||
Selected
Financial Information
|
||||||||||||||||
(in
millions)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Segment
Information
|
||||||||||||||||
Three
Months Ended September 30
|
||||||||||||||||
Net
Sales
|
Operating
Earnings
|
Operating
Margin
|
||||||||||||||
%
|
%
|
|||||||||||||||
2005
|
2004
|
Change
|
2005
|
2004
|
Change
|
2005
|
2004
|
|||||||||
Marine
Engine
|
$
643.4
|
$
575.5
|
12%
|
$
64.9
|
$
70.7
|
-8%
|
10.1%
|
12.3%
|
||||||||
Boat
|
682.7
|
567.3
|
20%
|
38.0
|
36.1
|
5%
|
5.6%
|
6.4%
|
||||||||
Marine
eliminations
|
(130.1)
|
(107.1)
|
-
|
-
|
|
|||||||||||
Total
Marine
|
|
1,196.0
|
1,035.7
|
15%
|
102.9
|
106.8
|
-4%
|
|
8.6%
|
10.3%
|
||||||
Fitness
|
127.4
|
132.2
|
-4%
|
14.2
|
8.4
|
69%
|
11.1%
|
6.4%
|
||||||||
Bowling
& Billiards
|
111.9
|
106.6
|
5%
|
5.7
|
4.0
|
43%
|
5.1%
|
3.8%
|
||||||||
Eliminations
|
(0.7)
|
(1.3)
|
-
|
-
|
||||||||||||
Corporate/Other
|
-
|
-
|
(16.9)
|
(19.9)
|
15%
|
|||||||||||
Total
|
|
$
1,434.6
|
$
1,273.2
|
13%
|
$
105.9
|
$
99.3
|
7%
|
7.4%
|
7.8%
|
|||||||
Nine
Months Ended September 30
|
||||||||||||||||
Net
Sales
|
Operating
Earnings
|
Operating
Margin
|
||||||||||||||
%
|
%
|
|||||||||||||||
2005
|
2004
|
Change
|
2005
|
2004
|
Change
|
2005
|
2004
|
|||||||||
Marine
Engine
|
$
2,004.5
|
$
1,768.6
|
13%
|
$
223.9
|
$
208.9
|
7%
|
11.2%
|
11.8%
|
||||||||
Boat
|
2,102.4
|
1,709.2
|
23%
|
162.3
|
125.1
|
30%
|
7.7%
|
7.3%
|
||||||||
Marine
eliminations
|
(383.0)
|
(287.2)
|
-
|
-
|
||||||||||||
Total
Marine
|
|
3,723.9
|
3,190.6
|
17%
|
386.2
|
334.0
|
16%
|
10.4%
|
10.5%
|
|||||||
Fitness
|
375.3
|
385.1
|
-3%
|
25.7
|
20.5
|
25%
|
6.8%
|
5.3%
|
||||||||
Bowling
& Billiards
|
338.3
|
322.6
|
5%
|
22.0
|
21.7
|
1%
|
6.5%
|
6.7%
|
||||||||
Eliminations
|
(3.2)
|
(2.8)
|
-
|
-
|
||||||||||||
Corporate/Other
|
-
|
-
|
(57.2)
|
(58.9)
|
3%
|
|||||||||||
Total
|
|
$
4,434.3
|
$
3,895.5
|
14%
|
$
376.7
|
$
317.3
|
19%
|
8.5%
|
8.1%
|
|||||||
Brunswick
Corporation
|
||||||||||
Comparative
Consolidated Condensed Balance Sheets
|
||||||||||
(in
millions)
|
||||||||||
September
30,
|
December
31,
|
September
30,
|
||||||||
2005
|
2004
|
2004
|
||||||||
(unaudited)
|
(unaudited)
|
|||||||||
Assets
|
||||||||||
Current
assets
|
||||||||||
Cash
and cash equivalents
|
$
|
535.9
|
$
|
499.8
|
$
|
493.1
|
||||
Accounts
and notes receivables, net
|
488.1
|
463.2
|
432.0
|
|||||||
Inventories
|
||||||||||
Finished
goods
|
443.3
|
389.9
|
386.5
|
|||||||
Work-in-process
|
314.6
|
260.5
|
260.3
|
|||||||
Raw
materials
|
168.3
|
136.4
|
130.0
|
|||||||
Net
inventories
|
926.2
|
786.8
|
776.8
|
|||||||
Deferred
income taxes
|
293.7
|
292.7
|
314.9
|
|||||||
Prepaid
expenses and other
|
54.6
|
56.2
|
55.9
|
|||||||
Current
assets
|
2,298.5
|
2,098.7
|
2,072.7
|
|||||||
Net
property
|
934.2
|
876.4
|
852.4
|
|||||||
Other
assets
|
||||||||||
Goodwill
and other intangibles
|
1,026.1
|
952.8
|
894.8
|
|||||||
Investments
and other long-term assets
|
359.7
|
418.5
|
382.1
|
|||||||
Total
assets
|
$
|
4,618.5
|
$
|
4,346.4
|
$
|
4,202.0
|
||||
Liabilities
and shareholders' equity
|
||||||||||
Current
liabilities
|
||||||||||
Short-term
debt
|
$
|
5.8
|
$
|
10.7
|
$
|
13.5
|
||||
Accounts
payable
|
447.5
|
387.9
|
341.0
|
|||||||
Accrued
expenses and accrued income taxes
|
803.0
|
855.2
|
838.3
|
|||||||
Current
liabilities
|
1,256.3
|
1,253.8
|
1,192.8
|
|||||||
Long-term
debt
|
726.8
|
728.4
|
729.8
|
|||||||
Other
long-term liabilities
|
641.6
|
651.9
|
604.1
|
|||||||
Shareholders'
equity
|
1,993.8
|
1,712.3
|
1,675.3
|
|||||||
Total
liabilities and shareholders' equity
|
$
|
4,618.5
|
$
|
4,346.4
|
$
|
4,202.0
|
||||
Supplemental
Information
|
||||||||||
Debt-to-capitalization
rate
|
26.9
|
%
|
30.2
|
%
|
30.7
|
%
|
Brunswick
Corporation
|
|||||||
Comparative
Consolidated Condensed Statements of Cash Flows
|
|||||||
(in
millions)
|
|||||||
(unaudited)
|
|||||||
Nine
Months Ended September 30
|
|||||||
2005
|
2004
|
||||||
Cash
flows from operating activities
|
|||||||
Net
earnings
|
$
|
297.1
|
$
|
211.0
|
|||
Depreciation
and amortization
|
118.4
|
117.5
|
|||||
Changes
in noncash current assets and current liabilities
|
(135.6
|
)
|
(122.2
|
)
|
|||
Income
taxes and other, net
|
(27.2
|
)
|
43.8
|
||||
Net
cash provided by operating activities
|
252.7
|
250.1
|
|||||
Cash
flows from investing activities
|
|||||||
Capital
expenditures
|
(157.8
|
)
|
(114.0
|
)
|
|||
Acquisitions
of businesses, net of cash and debt acquired
|
(130.2
|
)
|
(213.9
|
)
|
|||
Investments
|
2.5
|
(2.6
|
)
|
||||
Proceeds
from investment sale
|
57.9
|
-
|
|||||
Other,
net
|
11.7
|
4.7
|
|||||
Net
cash used for investing activities
|
(215.9
|
)
|
(325.8
|
)
|
|||
Cash
flows from financing activities
|
|||||||
Net
issuances (repayments) of commercial paper and
|
|||||||
other
short-term debt
|
4.4
|
(5.1
|
)
|
||||
Net
proceeds from issuances of long-term debt
|
-
|
150.1
|
|||||
Payments
of long-term debt including current maturities
|
(3.8
|
)
|
(6.0
|
)
|
|||
Stock
repurchases
|
(15.7
|
)
|
-
|
||||
Stock
options exercised
|
14.4
|
83.9
|
|||||
Net
cash provided by financing activities
|
(0.7
|
)
|
222.9
|
||||
Net
increase in cash and cash equivalents
|
36.1
|
147.2
|
|||||
Cash
and cash equivalents at January 1
|
499.8
|
345.9
|
|||||
Cash
and cash equivalents at September 30
|
$
|
535.9
|
$
|
493.1
|
|||
Free
Cash Flow
|
|||||||
Net
cash provided by operating activities
|
$
|
252.7
|
$
|
250.1
|
|||
Net
cash provided by (used for):
|
|||||||
Capital
expenditures
|
(157.8
|
)
|
(114.0
|
)
|
|||
Proceeds
from investment sale (1)
|
57.9
|
-
|
|||||
Other,
net
|
11.7
|
4.7
|
|||||
Total
Free Cash Flow
|
$
|
164.5
|
$
|
140.8
|
|||
(1)
Pre-tax proceeds from the sale of the Company's investment in MarineMax,
Inc., net of selling costs.
|