Usa. brunswick reports ninth consecutive quarter of earnings pershare growth - Diamond Circular Saw

In the first quarter of 2011, the Company had operatingearnings Brunswick Corporation April 26, 2012 Page 2 of 12 (more) of $67.0 million, which included $5.3 million of restructuring,exit and impairment charges. For the first quarter of 2012, Brunswick reported net earnings of$39.7 million, or $0.43 per diluted share, compared with $27.5million, or $0.30 per diluted share, for the first quarter of 2011.The earnings per diluted share for the first quarter of 2012included a $0.02 per diluted share charge from special tax items.The earnings per diluted share for the first quarter of 2011included $0.05 per diluted share of restructuring, exit andimpairment charges, and a $0.05 per diluted share loss on earlyextinguishment of debt. "As anticipated, our first quarter consolidated sales weremodestly lower due to specific factors affecting our Marine Engineand Life Fitness segments. Our first quarter gross margin of 24.2percent reflects an increase of 20 basis points from the prioryear.

Selling, general and administrative expense, combined withresearch and development expense, increased by 3 percent, which isinclusive of company-wide investments in growth initiatives. Lowernet interest expense and a reduced income tax provision during thequarter contributed to our higher reported net earnings,"McCoy said. Review of Cash Flow and Balance Sheet Cash and marketable securities totaled $426.9 million at the end ofthe first quarter, down $80.9 million from year-end 2011 levels.This decrease primarily reflects net cash used for operatingactivities of $69.7 million. Net cash used for operating activitieswas affected by changes in working capital during the quarter.These changes in working capital were largely the result ofincreases in accounts and notes receivable and inventory to supportthe seasonal requirements of our marine customers, and decreases inaccrued expenses, partially offset by increases in accountspayable. Net debt (defined as total debt, less cash and marketablesecurities) at the end of the first quarter was $269.1 million, anincrease of $84.1 million from year-end 2011 levels.

BrunswickCorporation April 26, 2012 Page 3 of 12 (more) The increase in net debt reflects the $80.9 million decrease intotal cash and marketable securities, combined with a slightincrease in debt levels. Change in Segment Reporting On April 19, 2012, the Company filed a Current Report on Form 8-K,which included revised segment reporting for 2010 and 2011, byquarter. These changes do not revise or restate the informationpreviously reported in the Consolidated Statements of Operation,Consolidated Balance Sheets, Consolidated Statements ofShareholders" Equity or Consolidated Statements of Cash Flowsfor the Company and consolidated subsidiaries for any period. Marine Engine Segment The Marine Engine segment, consisting of the Mercury Marine Group,including the marine parts and accessories businesses, reported netsales of $489.4 million in the first quarter of 2012, down 2percent from $501.1 million in the first quarter of 2011.International sales, which represented 39 percent of total segmentsales in the quarter, decreased by 7 percent.

For the quarter, theMarine Engine segment reported operating earnings of $47.9 million,including restructuring charges of $1.7 million. This compares withoperating earnings of $57.7 million in the first quarter of 2011,which included $4.3 million of restructuring charges. Sales were higher in the segment"s U.S. outboard and partsand accessories businesses.

This growth was more than offset byglobal sales declines in the segment"s sterndrive engineproduct category. During the quarter, Mercury"s manufacturing facilities, whencompared to the prior year, increased production of its outboardengines in response to market demand. Mercury produced fewersterndrive units in the quarter versus the prior year quarter, asit experienced operating constraints resulting from sterndriveramp-up issues following its recently completed plantconsolidation. In addition, the absence of a gain on the sale ofBrunswick Corporation April 26, 2012 Page 4 of 12 (more) a distribution facility and a favorable recovery against aninsurance policy in 2011 contributed to the decrease in operatingearnings in the first quarter of 2012. Partially offsetting thesefactors was the effect of lower variable compensation expense,successful cost reduction activities and lower restructuringcharges.

Boat Segment The Boat segment is comprised of the Brunswick Boat Group, andincludes 18 boat brands. The Boat segment reported net sales of$306.4 million for the first quarter of 2012, an increase of onepercent compared with $303.5 million in the first quarter of 2011.International sales, which represented 38 percent of total segmentsales in the quarter, decreased by 7 percent during the period. Forthe first quarter of 2012, the Boat segment reported operatingearnings of $2.8 million, including a gain of $1.5 million fromrestructuring activities. This compares with an operating loss of$4.8 million, including restructuring charges of $1.0 million, inthe first quarter of 2011. Boat segment production and wholesale shipments increased duringthe quarter, compared with the first quarter of 2011.

The increasein wholesale unit shipments was partially offset by the effect of ahigher mix of smaller boat sales and the absence of sales from theSealine brand, which was divested on Aug. 30, 2011. Higher salesand lower restructuring, exit and impairment charges had a positiveeffect on the segment"s improved quarterly results. Fitness Segment The Fitness segment is comprised of the Life Fitness Division,which designs, manufactures, and sells Life Fitness and HammerStrength fitness equipment.

Fitness segment sales in the firstquarter of 2012 totaled $157.1 million, up slightly from $156.4million in the first quarter of 2011. International sales, whichrepresented 48 percent of total segment sales in the quarter,decreased by 13 percent. For the quarter, the Fitness segmentreported operating earnings of $23.7 million. This compares withoperating earnings of $23.4 million in the first quarter of 2011.Brunswick Corporation April 26, 2012 Page 5 of 12 (more) Sales increased slightly when compared with the prior year"sfirst quarter, despite commercial equipment sales and operatingearnings benefiting from a large order from one of its customercategories in the first quarter of 2011. Operating earningsincreased by one percent in the first quarter of 2012, whencompared with 2011, as a result of the modest increase in revenuesand reduced operating expenses.

Bowling & Billiards Segment The Bowling & Billiards segment is comprised of Brunswickretail bowling centers, bowling equipment and products, andbilliards tables and accessories. Segment sales in the firstquarter of 2012 totaled $89.9 million, up 3 percent compared with$87.3 million in the year-ago quarter. International sales, whichrepresented 19 percent of total segment sales in the quarter,decreased by 5 percent. For the quarter, the segment reportedoperating earnings of $14.4 million, compared with operatingearnings of $14.2 million in the first quarter of 2011. For the quarter, bowling products experienced a solid increase insales, while equivalent-center sales for retail bowling were downslightly.

The improvement in operating earnings in the firstquarter of 2012, when compared with 2011, reflects contributionsfrom higher sales. Outlook "On the basis of our solid performance in the first quarter,and early season improvements in the retail marine marketplace, weare increasing our 2012 earnings per share expectation to a rangeof $1.30 to $1.50 per diluted share," McCoy said."Although a number of the factors that negatively affectedsales and earnings in the first quarter will continue into thesecond, we are planning for significant sales and earnings growthin the second half of this year. "Each of our business segments will continue to concentratetheir efforts on maintaining a favorable cost position andgenerating growth through market share gains and the BrunswickCorporation April 26, 2012 Page 6 of 12 (more) execution of organic growth initiatives. In addition, our 2012 plancontinues to reflect the generation of positive free cash flow, thefurther reduction of debt outstanding and improvements to thefunded status of our pension liabilities.

"Our outlook beyond 2012 remains consistent with the growthplans we described during our February 16, 2012, investor event.Over the next few years, these plans build on our recent financialprogress, and further anticipate the successful execution of ourvarious operational and capital structure strategicinitiatives," McCoy concluded. Conference Call Scheduled Brunswick will host a conference call today at 10 a.m. CDT, hostedby Dustan E. McCoy, chairman and chief executive officer, Peter B.Hamilton, senior vice president and chief financial officer, andBruce J.

Byots, vice president – corporate and investorrelations. The call will be broadcast over the Internet at .To listen to the call, go to the website at least 15 minutes beforethe call to register, download and install any needed audiosoftware. See Brunswick"s Website for slides used to supplementconference call remarks at /investors/investorinformation/events-presentations.php Security analysts and investors wishing to participate viatelephone should call (866) 730-5763 (passcode: Brunswick Q1).Callers outside of North America should call (857) 350-1587(passcode: Brunswick Q1) to be connected. These numbers can beaccessed 15 minutes before the call begins, as well as during thecall. A replay of the conference call will be available throughmidnight CDT Thursday, May 3, 2012, by calling (888) 286-8010(passcode: 34720402) or international dial (617) 801-6888(passcode: 34720402).

The replay will also be available at. Brunswick Corporation April 26, 2012 Page 7 of12 (more) Forward-Looking Statements Certain statements in this news release are forward-looking asdefined in the Private Securities Litigation Reform Act of 1995.Such statements are based on current expectations, estimates andprojections about Brunswick"s business. These statements arenot guarantees of future performance and involve certain risks anduncertainties that may cause actual results to differ materiallyfrom expectations as of the date of this news release. These risksinclude, but are not limited to: the effect of adverse generaleconomic conditions, including the amount of disposable incomeavailable to consumers for discretionary purchases, tight consumercredit markets, and the level of consumer confidence on the demandfor marine, fitness, billiards and bowling equipment, products andservices; the ability of dealers and customers to secure adequateaccess to financing and the Company"s ability to accesscapital and credit markets; the ability to maintain strongrelationships with dealers, distributors and independent boatbuilders; the ability to maintain effective distribution anddevelop alternative distribution channels without disruptingincumbent distribution partners; the ability to successfully managepipeline inventories and respond to any excess supply ofrepossessed and aged boats in the market; credit and collectionsrisks, including the potential obligation to repurchase dealerinventory; the risk of losing a key account or a critical supplier;the strength and protection of the Company"s brands and otherintellectual property; the ability to spread fixed costs whileestablishing a smaller manufacturing footprint; the ability tosuccessfully complete restructuring efforts in accordance withprojected timeframes and costs; the ability to obtain components,parts and raw materials from suppliers in a timely manner and for areasonable price; the need to meet pension funding obligations; theeffect of higher energy and logistics costs, interest rates andfuel prices on the Company"s results; competitive pricingpressures, including the impact of inflation and increasedcompetition from Asian competitors; the ability to develop new andinnovative products in response to changing retail demands andexpectations that are differentiated for the global marketplace ata competitive price and in compliance with applicable laws; theeffect of competition from other leisure pursuits on the level ofparticipation in boating, fitness, bowling and billiardsactivities; the risk of product liability, warranty and otherclaims in connection with the manufacture and sale of products; theability to respond to and minimize the negative financial impact oflegislative and regulatory developments, including those related toenvironmental restrictions, climate change, taxes and employeebenefits; the ability to maintain market share, particularly inhigh-margin products; fluctuations in the Company"s stockprice due to external factors; the ability to maintain productquality and service standards expected by customers; the ability toincrease manufacturing operations and meet production targetswithin time and budgets allowed; negative currency trends,including shifts in exchange rates; competition from newtechnologies; the ability to complete environmental remediationefforts and resolve claims and litigation at the cost estimated;the uncertainty and risks of doing business in internationallocations, including international political instability, civilunrest and other risks associated with operations in emergingmarkets; the risk of having to record an impairment to the value ofgoodwill and other assets; the effect that catastrophic events mayhave on consumer demand and the ability to manufacture products,including hurricanes, floods, earthquakes, and environmentalspills; the effect of weather conditions on demand for marineproducts and retail bowling center revenues; the risk of losingindividuals who are key contributors to the organization; and risksassociated with the Company"s information technology systems,including the continued use of legacy systems and the risk of afailure of or attacks on the Company"s information systems,which could result in data security breaches, lost or stolen assetsor information, and associated remediation costs.

Additional factors are included in the Company"s AnnualReport on Form 10-K for 2011. Such forward-looking statements speakonly as of the date on which they are made and Brunswick does notundertake any obligation to update any forward-looking statementsto reflect events or circumstances after the date of this newsrelease, or for changes made to this document by wire services orInternet service providers. Last Updated ( Thursday, 26 April 2012 ).

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