Exhibit
99.1
| 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’S
PROPOSED SALE OF BNT
AFFECTED
BY CHANGING MARKET CONDITIONS
LAKE
FOREST, Ill., Dec. 11,
2006 - Brunswick Corporation (NYSE: BC) today announced that it is
facing increasingly challenging market conditions in the highly competitive
portable navigation device (PND) segment, which is affecting the operating
performance of its Brunswick New Technologies (BNT) unit and Brunswick’s ability
to dispose of BNT at or above book value. In April 2006, Brunswick announced
its
intent to sell BNT, which includes fleet management, marine electronics and
PND
products sold under the Navman, Northstar and MX Marine brands.
“BNT
is
an amalgamation of electronics businesses primarily based on GPS technologies,”
explained Dustan E. McCoy, Brunswick chairman and chief executive officer.
“As
we announced earlier this year, we no longer view ownership of BNT as a
strategic imperative and choose to free up resources to more intently focus
on
our core business segments - marine, fitness, bowling and billiards - and
long-term strategic objectives.”
Increased
competition and pricing pressures in the PND market segment are adversely
affecting the operating results of BNT’s PND business in the important fourth
quarter holiday selling season. Based on the performance of this operation
and
very recent discussions with potential buyers, the company has concluded
that
proceeds from the sale of BNT will be less than its book value. These conditions
will result in a non-cash asset impairment charge estimated in the range
of $70
million to $95 million in the fourth quarter, primarily driven by the PND
business.
“Over
the
past two months, we have experienced a significant change in the market dynamics
for PND products, primarily in Europe where Navman holds the number-three market
share position,” McCoy continued. “While we’ve said all year that the market is
becoming increasingly competitive, in November alone we witnessed an even
greater level of price discounting, which has adversely affected our PND
business unit.”
“Nevertheless,
we are continuing with the sales process for the PND business as well as the
marine electronics and fleet management units, the latter two of which continue
to perform at or above expected levels,” McCoy said.
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; competition in the consumer electronics
markets; imports from Asia and increased competition from Asian competitors;
the
ability to obtain component parts from 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 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 ability to successfully complete announced divestitures;
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 2005 and Quarterly Report on Form 10-Q
for the quarter ended Sept. 30, 2006.
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; Albemarle, Arvor, Baja,
Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, HarrisKayot,
Hatteras, Laguna, Lowe, Lund, Maxum, Meridian, Örnvik, 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, Kellogg
Marine, Diversified Marine and Benrock parts and accessories distributors;
IDS
dealer management systems; 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.