Brunswick Reports EPS of $0.45 in First Quarter

Apr 24, 2001, 01:00 ET from Brunswick Corporation

    LAKE FOREST, Ill., April 24 /PRNewswire Interactive News Release/ --
 Brunswick Corporation (NYSE:   BC) announced today that diluted earnings
 per share from continuing operations in the first quarter of 2001 totaled
 $0.45, in line with previously announced expectations, compared with $0.66 per
 diluted share for the first quarter of 2000.
     Commenting on the announcement, Brunswick Chairman and Chief Executive
 Officer George W. Buckley said, "We are pleased with our results for the
 quarter, especially in light of the impact that tough economic and market
 conditions are having on retail demand for boating products generally.  As
 expected, sales slowed in both our Marine Engine and Boat segments.  In our
 Recreation segment, higher sales of fitness equipment helped offset lower
 bowling product sales.  Costs associated with plant closures and production
 rate reductions also affected operating margins, which were 8.7 percent in the
 first quarter versus 11.8 percent a year ago."
 
     First-Quarter Results
     For the quarter ended March 31, 2001, the company reported net sales of
 $913.2 million, down 4 percent from $955.4 million a year earlier.  Operating
 earnings declined to $79.0 million from $113.0 million a year ago.
     For the first quarter of 2001, earnings from continuing operations totaled
 $39.5 million, or $0.45 per diluted share.  During the quarter, the company
 adopted Financial Accounting Standards Board SFAS Nos. 133/138, "Accounting
 for Certain Derivative Instruments and Certain Hedging Activities."  Including
 the non-cash cumulative effect of adopting the new accounting standard, net
 earnings totaled $36.6 million, or $0.42 per diluted share.
     In the year-ago first quarter, the company had earnings from continuing
 operations of $60.7 million, or $0.66 per diluted share.  The loss from
 discontinued operations in the first quarter of 2000 was $2.0 million, or
 $0.02 per diluted share.
 
     Discontinued Operations
     During 2000, the company announced its decision to divest its outdoor
 recreation businesses and has accounted for them as discontinued operations.
 "We're making very good progress toward selling these businesses," Buckley
 noted.  "To date, we've completed the sale of our bicycle, sleeping bag, tent,
 camping apparel and hunting sports accessories businesses in five separate
 transactions.  We're now focused on getting our fishing, cooler and marine
 accessories businesses sold by the third quarter of 2001.  The restructuring
 actions we have taken over the past nine months are steadily improving these
 businesses, and they are well positioned for sale."
 
     Marine Engine Segment
     The Marine Engine segment, consisting of the Mercury Marine Group,
 reported sales of $413.7 million in the first quarter of 2001, compared with
 $429.0 million in the year-ago quarter.  Operating earnings in the quarter
 declined to $49.3 million versus $60.9 million a year ago.  Operating margins
 were 11.9 percent compared with 14.2 percent.
     "While our domestic outboard and sterndrive engine sales and earnings were
 down, Mercury posted strong sales increases in Europe and Australia driven by
 good demand for low-emission outboard engines.  Mercury is also benefiting
 from the recent sale of a competitor's business out of bankruptcy by signing
 up new dealers and distributors and picking up market share in outboard
 engines, which bodes well for the long term," Buckley said.
 
     Boat Segment
     The Brunswick Boat Group comprises the Boat segment and includes the Sea
 Ray, Bayliner, Maxum, Boston Whaler, Trophy, Baja and Princecraft boat brands.
 The Boat segment reported sales for the first quarter of $380.3 million,
 compared with $418.5 million in the year-ago quarter.  Operating earnings
 totaled $23.8 million, down from $37.9 million.  Operating margins in the
 quarter were 6.3 percent versus 9.1 percent.
     "Sea Ray and Boston Whaler posted increased sales and earnings reflecting
 the relatively stronger market for larger boats and offshore fishing boats
 during the quarter.  These gains, however, were more than offset by a
 significant decline in sales of smaller boats, a market that has been soft
 since last summer," said Buckley.
     "We have taken a number of steps that are expected to reduce plant and
 field inventories in response to the weak market conditions.  It is important
 for us to get inventories in shape," Buckley noted.  "As previously announced,
 four US Marine boat-manufacturing plants were permanently closed last month.
 We also suspended construction of a nearly completed Sea Ray plant in Florida.
 In addition, beginning this week the eight remaining US Marine plants will be
 temporarily shut down for between one and five weeks.  We have also
 permanently reduced the Brunswick Boat Group workforce by approximately
 15 percent since the beginning of the year.  This will be a challenging marine
 year, but our business improvement actions will build a more competitive
 company that will be better positioned as we come out of the downturn."
 
     Recreation Segment
     The Recreation segment includes the Brunswick Bowling & Billiards and Life
 Fitness exercise equipment businesses.  Segment sales in the first quarter of
 2001 totaled $186.3 million, compared with $187.3 million in the year-ago
 quarter.  Operating earnings declined to $19.8 million from $25.0 million, and
 operating margins were 10.6 percent and 13.3 percent in the first quarters of
 2001 and 2000, respectively.
     "Life Fitness sales were up in the quarter with strong contributions from
 our international division and consumer products offsetting lower sales in the
 U.S. health club market.  But this shift in sales mix adversely affects
 operating margins.  Uncertainty around the economy is resulting in a
 significant scale back of new health club openings and equipment upgrades in
 existing clubs," Buckley explained.  "In our bowling business, sales and
 earnings from family bowling centers were relatively flat.  The overall
 decline in bowling sales and earnings was primarily attributable to the
 bowling equipment, consumer products and supplies categories as we continue to
 implement plans to rationalize our product lines and distribution channels."
 
     Looking Ahead
     Commenting on the current year, Buckley said, "Given the tight economy for
 luxury products in the United States, our primary objective in 2001 is to
 report good earnings, but also to better position the company to achieve
 growth in the long term.  In that vein, we are taking action on two fronts.
 First, we're aggressively addressing the impact that the weak economy is
 having on retail demand for our marine products by lowering production rates
 to reduce inventories and match lower demand, reducing head count and
 implementing vigorous cost reduction plans.  Second, we're continuing to
 implement our long-range plans to improve operational effectiveness across all
 our divisions, including evaluating our staffing, capacity, product mix,
 branding strategies, supply chain management, distribution channels,
 manufacturing processes and inventory control.  While all these actions will
 affect our near-term results, the benefits will make the company even more
 competitive and profitable over the medium and long term."
     "Given current market conditions, we continue to take a very prudent
 approach to our plans for 2001.  In the past three months, concern about the
 economy has increased and consumer confidence has declined significantly,
 which, along with the stock market volatility, have contributed to
 considerable weakness at retail for marine products.  Even the large boat
 category is slowing down.  This has affected the rate at which our customers
 are replenishing their inventories, affecting wholesale shipments of our
 products.  While taking the actions necessary to manage the business through
 the downturn, however, we will not lose sight of our long-term objective of
 building on our market-leading brand positions in marine, fitness and bowling
 through investment in product innovation, technology and process
 improvements," Buckley added.
     "For the year, Boat segment results will be affected by our inventory
 management efforts, including the plant shut downs and production rate
 reductions.  The impact of these actions on our Marine Engine segment sales
 will be partially mitigated by contributions from international business and
 market share gains in outboard engines.  Therefore, marine sales are expected
 to be down about 10 percent for the year.  On the other hand, we expect year-
 over-year improvements in sales and earnings for the Recreation segment in the
 latter part of the year as we benefit from new product introductions and enter
 the seasonally stronger period for our exercise equipment and bowling
 businesses.
     "To help offset the earnings impact from the sales decline, we are taking
 appropriate steps to reduce costs, including a hiring freeze, reduced bonus
 accruals, wage freezes and deferrals, travel restrictions, selling non-core
 assets and delaying non-essential capital projects.  Nonetheless, operating
 margins could be down as much as 300 to 350 basis points.
     "As we look ahead, there remains a lot of economic and market uncertainty,
 and we are just entering the height of the boating season.  Consequently,
 we are estimating diluted EPS in 2001 in the broad range of $1.70 to
 $2.00, compared with $2.73 last year," said Buckley.
     "The second quarter will be very difficult, especially when compared with
 the record quarterly earnings reported in the second quarter last year,"
 Buckley noted.  "While traditionally the strongest due to the seasonality of
 the marine business, the previously mentioned inventory reduction efforts will
 adversely affect factory overhead recovery and resultant earnings.  These
 actions are the right thing to do, but they will cost us in the short term.
 Further, shifts in product mix, inventory reductions and costs associated with
 integration of a fitness equipment retailer acquired in the first quarter
 will impact Recreation segment margins.  Therefore, diluted earnings per
 share for the second quarter of 2001 are estimated to be between $0.47 and
 $0.57, compared with $0.93 in the second quarter of last year."
 
     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 release.  These
 risks include, but are not limited to, the ability to dispose of the fishing,
 cooler and marine accessories businesses within the time, price and manner
 estimated; the ability to maintain key customers during the divestiture
 period; the ability of the buyers to obtain financing; weak market demand for
 the company's products; shifts in currency exchange rates; the effect of
 interest rates and fuel prices on demand for marine products; competitive
 pricing pressures; inventory adjustments by major dealers and retailers; the
 success of inventory reduction efforts; adverse domestic or foreign economic
 conditions; adverse weather conditions retarding sales of recreation products;
 the ability to complete environmental remediation efforts at the cost
 estimated; the success of marketing and cost-management programs; the
 company's ability to develop and produce new products; new and competing
 technologies; and imports from Asia and increased competition from Asian
 competitors.  Additional factors are included in the company's Annual Report
 on Form 10-K for 2000.
 
     Headquartered in Lake Forest, Ill., Brunswick Corporation is a marketer
 and manufacturer of leading consumer brands including Mercury and Mariner
 outboard engines; Mercury MerCruiser sterndrives and inboard engines; Sea Ray,
 Bayliner and Maxum pleasure boats; Baja high-performance boats; Boston Whaler
 and Trophy offshore fishing boats; Princecraft deck and pontoon boats; Life
 Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling
 centers, equipment and consumer products; and Brunswick billiards tables.
 
 
     Brunswick Corporation
     Comparative Consolidated Statements of Income
     (in millions, except percentages and per share data)
 
                                                     Quarter Ended March 31
                                                          (unaudited)
                                                 2001         2000     % Change
     Net sales                                  $913.2       $955.4        -4%
     Cost of sales                               687.4        681.7
     Selling, general and administrative
      expense                                    146.8        160.7        -9%
     Operating earnings                           79.0        113.0       -30%
     Interest expense                            (13.6)       (16.4)      -17%
     Other income (expense)                       (1.7)         1.1
     Earnings before income taxes                 63.7         97.7       -35%
     Income tax provision                         24.2         37.0
     Earnings from continuing operations          39.5         60.7       -35%
     Cumulative effect of change in
      accounting principle, net of tax            (2.9)          -
     Loss from discontinued operations,
      net of tax                                    -          (2.0)
     Net earnings                                $36.6        $58.7       -38%
 
     Basic earnings per common share:
      Earnings from continuing operations        $0.45        $0.66       -32%
      Cumulative effect of change in
       accounting principle                      (0.03)         -
      Loss from discontinued operations            -          (0.02)
      Net earnings                               $0.42        $0.64       -34%
 
     Diluted earnings per common share:
      Earnings from continuing operations        $0.45        $0.66       -32%
      Cumulative effect of change in
       accounting principle                      (0.03)         -
      Loss from discontinued operations            -          (0.02)
      Net earnings                               $0.42        $0.64       -34%
 
     Average shares used for computation
      of:
     Basic earnings per share                     87.7         91.4        -4%
     Diluted earnings per share                   87.8         91.5        -4%
 
     Effective tax rate                          38.0%        37.9%
 
 
      Brunswick Corporation
      Selected Financial Information
      (in millions, except percentages)
 
      Segment Information
 
                                                   Quarter Ended March 31
                                                         (unaudited)
                                                          Net Sales
                                                                           %
                                                 2001         2000       Change
 
       Marine Engine                            $413.7       $429.0        -4%
       Boat                                      380.3        418.5        -9%
       Marine eliminations                       (67.1)       (79.4)
           Total Marine                          726.9        768.1        -5%
 
       Recreation                                186.3        187.3        -1%
 
           Total                                $913.2       $955.4        -4%
 
 
                                                    Quarter Ended March 31
                                                          (unaudited)
                                                      Operating Earnings
                                                                            %
                                                  2001        2000       Change
 
        Marine Engine                            $49.3        $60.9       -19%
        Boat                                      23.8         37.9       -37%
            Total Marine                          73.1         98.8       -26%
 
        Recreation                                19.8         25.0       -21%
 
        Corporate/Other                          (13.9)       (10.8)
            Total                                $79.0       $113.0       -30%
 
 
                                                      Quarter Ended March 31
                                                            (unaudited)
                                                          Operating Margin
                                                      2001               2000
 
        Marine Engine                                 11.9%              14.2%
        Boat                                           6.3%               9.1%
            Total Marine                              10.1%              12.9%
 
        Recreation                                    10.6%              13.3%
 
            Total                                      8.7%              11.8%
 
 
       Supplemental Information
                                                  March 31,           March 31,
                                                     2001               2000
                                                           (unaudited)
 
       Cash                                          $72.3             $123.8
       Debt                                         $744.2             $918.3
       Common shareholders' equity                $1,100.0           $1,293.5
       Debt-to-capitalization rate                   40.4%              41.5%
 
 
                                                       Quarter Ended March 31
                                                            (unaudited)
                                                      2001               2000
 
       Capital expenditures                          $18.7              $21.5
       Depreciation and amortization                  37.1               35.2
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X46568462
 
 

SOURCE Brunswick Corporation
    LAKE FOREST, Ill., April 24 /PRNewswire Interactive News Release/ --
 Brunswick Corporation (NYSE:   BC) announced today that diluted earnings
 per share from continuing operations in the first quarter of 2001 totaled
 $0.45, in line with previously announced expectations, compared with $0.66 per
 diluted share for the first quarter of 2000.
     Commenting on the announcement, Brunswick Chairman and Chief Executive
 Officer George W. Buckley said, "We are pleased with our results for the
 quarter, especially in light of the impact that tough economic and market
 conditions are having on retail demand for boating products generally.  As
 expected, sales slowed in both our Marine Engine and Boat segments.  In our
 Recreation segment, higher sales of fitness equipment helped offset lower
 bowling product sales.  Costs associated with plant closures and production
 rate reductions also affected operating margins, which were 8.7 percent in the
 first quarter versus 11.8 percent a year ago."
 
     First-Quarter Results
     For the quarter ended March 31, 2001, the company reported net sales of
 $913.2 million, down 4 percent from $955.4 million a year earlier.  Operating
 earnings declined to $79.0 million from $113.0 million a year ago.
     For the first quarter of 2001, earnings from continuing operations totaled
 $39.5 million, or $0.45 per diluted share.  During the quarter, the company
 adopted Financial Accounting Standards Board SFAS Nos. 133/138, "Accounting
 for Certain Derivative Instruments and Certain Hedging Activities."  Including
 the non-cash cumulative effect of adopting the new accounting standard, net
 earnings totaled $36.6 million, or $0.42 per diluted share.
     In the year-ago first quarter, the company had earnings from continuing
 operations of $60.7 million, or $0.66 per diluted share.  The loss from
 discontinued operations in the first quarter of 2000 was $2.0 million, or
 $0.02 per diluted share.
 
     Discontinued Operations
     During 2000, the company announced its decision to divest its outdoor
 recreation businesses and has accounted for them as discontinued operations.
 "We're making very good progress toward selling these businesses," Buckley
 noted.  "To date, we've completed the sale of our bicycle, sleeping bag, tent,
 camping apparel and hunting sports accessories businesses in five separate
 transactions.  We're now focused on getting our fishing, cooler and marine
 accessories businesses sold by the third quarter of 2001.  The restructuring
 actions we have taken over the past nine months are steadily improving these
 businesses, and they are well positioned for sale."
 
     Marine Engine Segment
     The Marine Engine segment, consisting of the Mercury Marine Group,
 reported sales of $413.7 million in the first quarter of 2001, compared with
 $429.0 million in the year-ago quarter.  Operating earnings in the quarter
 declined to $49.3 million versus $60.9 million a year ago.  Operating margins
 were 11.9 percent compared with 14.2 percent.
     "While our domestic outboard and sterndrive engine sales and earnings were
 down, Mercury posted strong sales increases in Europe and Australia driven by
 good demand for low-emission outboard engines.  Mercury is also benefiting
 from the recent sale of a competitor's business out of bankruptcy by signing
 up new dealers and distributors and picking up market share in outboard
 engines, which bodes well for the long term," Buckley said.
 
     Boat Segment
     The Brunswick Boat Group comprises the Boat segment and includes the Sea
 Ray, Bayliner, Maxum, Boston Whaler, Trophy, Baja and Princecraft boat brands.
 The Boat segment reported sales for the first quarter of $380.3 million,
 compared with $418.5 million in the year-ago quarter.  Operating earnings
 totaled $23.8 million, down from $37.9 million.  Operating margins in the
 quarter were 6.3 percent versus 9.1 percent.
     "Sea Ray and Boston Whaler posted increased sales and earnings reflecting
 the relatively stronger market for larger boats and offshore fishing boats
 during the quarter.  These gains, however, were more than offset by a
 significant decline in sales of smaller boats, a market that has been soft
 since last summer," said Buckley.
     "We have taken a number of steps that are expected to reduce plant and
 field inventories in response to the weak market conditions.  It is important
 for us to get inventories in shape," Buckley noted.  "As previously announced,
 four US Marine boat-manufacturing plants were permanently closed last month.
 We also suspended construction of a nearly completed Sea Ray plant in Florida.
 In addition, beginning this week the eight remaining US Marine plants will be
 temporarily shut down for between one and five weeks.  We have also
 permanently reduced the Brunswick Boat Group workforce by approximately
 15 percent since the beginning of the year.  This will be a challenging marine
 year, but our business improvement actions will build a more competitive
 company that will be better positioned as we come out of the downturn."
 
     Recreation Segment
     The Recreation segment includes the Brunswick Bowling & Billiards and Life
 Fitness exercise equipment businesses.  Segment sales in the first quarter of
 2001 totaled $186.3 million, compared with $187.3 million in the year-ago
 quarter.  Operating earnings declined to $19.8 million from $25.0 million, and
 operating margins were 10.6 percent and 13.3 percent in the first quarters of
 2001 and 2000, respectively.
     "Life Fitness sales were up in the quarter with strong contributions from
 our international division and consumer products offsetting lower sales in the
 U.S. health club market.  But this shift in sales mix adversely affects
 operating margins.  Uncertainty around the economy is resulting in a
 significant scale back of new health club openings and equipment upgrades in
 existing clubs," Buckley explained.  "In our bowling business, sales and
 earnings from family bowling centers were relatively flat.  The overall
 decline in bowling sales and earnings was primarily attributable to the
 bowling equipment, consumer products and supplies categories as we continue to
 implement plans to rationalize our product lines and distribution channels."
 
     Looking Ahead
     Commenting on the current year, Buckley said, "Given the tight economy for
 luxury products in the United States, our primary objective in 2001 is to
 report good earnings, but also to better position the company to achieve
 growth in the long term.  In that vein, we are taking action on two fronts.
 First, we're aggressively addressing the impact that the weak economy is
 having on retail demand for our marine products by lowering production rates
 to reduce inventories and match lower demand, reducing head count and
 implementing vigorous cost reduction plans.  Second, we're continuing to
 implement our long-range plans to improve operational effectiveness across all
 our divisions, including evaluating our staffing, capacity, product mix,
 branding strategies, supply chain management, distribution channels,
 manufacturing processes and inventory control.  While all these actions will
 affect our near-term results, the benefits will make the company even more
 competitive and profitable over the medium and long term."
     "Given current market conditions, we continue to take a very prudent
 approach to our plans for 2001.  In the past three months, concern about the
 economy has increased and consumer confidence has declined significantly,
 which, along with the stock market volatility, have contributed to
 considerable weakness at retail for marine products.  Even the large boat
 category is slowing down.  This has affected the rate at which our customers
 are replenishing their inventories, affecting wholesale shipments of our
 products.  While taking the actions necessary to manage the business through
 the downturn, however, we will not lose sight of our long-term objective of
 building on our market-leading brand positions in marine, fitness and bowling
 through investment in product innovation, technology and process
 improvements," Buckley added.
     "For the year, Boat segment results will be affected by our inventory
 management efforts, including the plant shut downs and production rate
 reductions.  The impact of these actions on our Marine Engine segment sales
 will be partially mitigated by contributions from international business and
 market share gains in outboard engines.  Therefore, marine sales are expected
 to be down about 10 percent for the year.  On the other hand, we expect year-
 over-year improvements in sales and earnings for the Recreation segment in the
 latter part of the year as we benefit from new product introductions and enter
 the seasonally stronger period for our exercise equipment and bowling
 businesses.
     "To help offset the earnings impact from the sales decline, we are taking
 appropriate steps to reduce costs, including a hiring freeze, reduced bonus
 accruals, wage freezes and deferrals, travel restrictions, selling non-core
 assets and delaying non-essential capital projects.  Nonetheless, operating
 margins could be down as much as 300 to 350 basis points.
     "As we look ahead, there remains a lot of economic and market uncertainty,
 and we are just entering the height of the boating season.  Consequently,
 we are estimating diluted EPS in 2001 in the broad range of $1.70 to
 $2.00, compared with $2.73 last year," said Buckley.
     "The second quarter will be very difficult, especially when compared with
 the record quarterly earnings reported in the second quarter last year,"
 Buckley noted.  "While traditionally the strongest due to the seasonality of
 the marine business, the previously mentioned inventory reduction efforts will
 adversely affect factory overhead recovery and resultant earnings.  These
 actions are the right thing to do, but they will cost us in the short term.
 Further, shifts in product mix, inventory reductions and costs associated with
 integration of a fitness equipment retailer acquired in the first quarter
 will impact Recreation segment margins.  Therefore, diluted earnings per
 share for the second quarter of 2001 are estimated to be between $0.47 and
 $0.57, compared with $0.93 in the second quarter of last year."
 
     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 release.  These
 risks include, but are not limited to, the ability to dispose of the fishing,
 cooler and marine accessories businesses within the time, price and manner
 estimated; the ability to maintain key customers during the divestiture
 period; the ability of the buyers to obtain financing; weak market demand for
 the company's products; shifts in currency exchange rates; the effect of
 interest rates and fuel prices on demand for marine products; competitive
 pricing pressures; inventory adjustments by major dealers and retailers; the
 success of inventory reduction efforts; adverse domestic or foreign economic
 conditions; adverse weather conditions retarding sales of recreation products;
 the ability to complete environmental remediation efforts at the cost
 estimated; the success of marketing and cost-management programs; the
 company's ability to develop and produce new products; new and competing
 technologies; and imports from Asia and increased competition from Asian
 competitors.  Additional factors are included in the company's Annual Report
 on Form 10-K for 2000.
 
     Headquartered in Lake Forest, Ill., Brunswick Corporation is a marketer
 and manufacturer of leading consumer brands including Mercury and Mariner
 outboard engines; Mercury MerCruiser sterndrives and inboard engines; Sea Ray,
 Bayliner and Maxum pleasure boats; Baja high-performance boats; Boston Whaler
 and Trophy offshore fishing boats; Princecraft deck and pontoon boats; Life
 Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling
 centers, equipment and consumer products; and Brunswick billiards tables.
 
 
     Brunswick Corporation
     Comparative Consolidated Statements of Income
     (in millions, except percentages and per share data)
 
                                                     Quarter Ended March 31
                                                          (unaudited)
                                                 2001         2000     % Change
     Net sales                                  $913.2       $955.4        -4%
     Cost of sales                               687.4        681.7
     Selling, general and administrative
      expense                                    146.8        160.7        -9%
     Operating earnings                           79.0        113.0       -30%
     Interest expense                            (13.6)       (16.4)      -17%
     Other income (expense)                       (1.7)         1.1
     Earnings before income taxes                 63.7         97.7       -35%
     Income tax provision                         24.2         37.0
     Earnings from continuing operations          39.5         60.7       -35%
     Cumulative effect of change in
      accounting principle, net of tax            (2.9)          -
     Loss from discontinued operations,
      net of tax                                    -          (2.0)
     Net earnings                                $36.6        $58.7       -38%
 
     Basic earnings per common share:
      Earnings from continuing operations        $0.45        $0.66       -32%
      Cumulative effect of change in
       accounting principle                      (0.03)         -
      Loss from discontinued operations            -          (0.02)
      Net earnings                               $0.42        $0.64       -34%
 
     Diluted earnings per common share:
      Earnings from continuing operations        $0.45        $0.66       -32%
      Cumulative effect of change in
       accounting principle                      (0.03)         -
      Loss from discontinued operations            -          (0.02)
      Net earnings                               $0.42        $0.64       -34%
 
     Average shares used for computation
      of:
     Basic earnings per share                     87.7         91.4        -4%
     Diluted earnings per share                   87.8         91.5        -4%
 
     Effective tax rate                          38.0%        37.9%
 
 
      Brunswick Corporation
      Selected Financial Information
      (in millions, except percentages)
 
      Segment Information
 
                                                   Quarter Ended March 31
                                                         (unaudited)
                                                          Net Sales
                                                                           %
                                                 2001         2000       Change
 
       Marine Engine                            $413.7       $429.0        -4%
       Boat                                      380.3        418.5        -9%
       Marine eliminations                       (67.1)       (79.4)
           Total Marine                          726.9        768.1        -5%
 
       Recreation                                186.3        187.3        -1%
 
           Total                                $913.2       $955.4        -4%
 
 
                                                    Quarter Ended March 31
                                                          (unaudited)
                                                      Operating Earnings
                                                                            %
                                                  2001        2000       Change
 
        Marine Engine                            $49.3        $60.9       -19%
        Boat                                      23.8         37.9       -37%
            Total Marine                          73.1         98.8       -26%
 
        Recreation                                19.8         25.0       -21%
 
        Corporate/Other                          (13.9)       (10.8)
            Total                                $79.0       $113.0       -30%
 
 
                                                      Quarter Ended March 31
                                                            (unaudited)
                                                          Operating Margin
                                                      2001               2000
 
        Marine Engine                                 11.9%              14.2%
        Boat                                           6.3%               9.1%
            Total Marine                              10.1%              12.9%
 
        Recreation                                    10.6%              13.3%
 
            Total                                      8.7%              11.8%
 
 
       Supplemental Information
                                                  March 31,           March 31,
                                                     2001               2000
                                                           (unaudited)
 
       Cash                                          $72.3             $123.8
       Debt                                         $744.2             $918.3
       Common shareholders' equity                $1,100.0           $1,293.5
       Debt-to-capitalization rate                   40.4%              41.5%
 
 
                                                       Quarter Ended March 31
                                                            (unaudited)
                                                      2001               2000
 
       Capital expenditures                          $18.7              $21.5
       Depreciation and amortization                  37.1               35.2
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X46568462
 
 SOURCE  Brunswick Corporation