Brunswick Posts 3rd quarter results

[jackdaniels]

LAKE FOREST, Ill., Oct 29, 2009 /PRNewswire-FirstCall via COMTEX/ - Brunswick Corporation (BC) reported today results for the third quarter of 2009:



- Total sales of $665.8 million were down 36 percent versus 2008,
primarily the result of marine sales that dropped by 40 percent from
year-ago levels.
- A net loss of $114.3 million, or $1.29 per diluted share, which includes
$0.32 per diluted share of restructuring charges, and $0.24 per diluted
share of benefits from special tax items.
- Cash totaled $624.1 million, up from the 2008 year-end balance of $317.5
million.

- Pipeline reduction and inventory management strategies led to lower
dealer inventory levels and company cash flow benefits, while having a
negative impact on the company's revenue and earnings.



"We continue to make great strides in improving our overall liquidity position, reducing our marine dealer pipeline and executing our cost reduction program," said Brunswick's Chairman and Chief Executive Officer Dustan E. McCoy. "These significant accomplishments have been achieved against a global marine market that has experienced its lowest level of demand in more than 45 years.

"Our overall liquidity at the end of the third quarter was $740 million, $222 million higher than existed at the end of 2008. During the quarter, we retired notes maturing in 2011, which eliminates any material debt maturities over the next three years.

"As we entered 2009, we established as one of our top priorities an inventory management and pipeline reduction strategy that was intended to assist our dealers through this very difficult period. By producing fewer units than we sold at wholesale, and selling lower amounts at wholesale than our dealers are retailing, we have been able to reduce the number of boats on dealers' showrooms as well as in our factory yards to extremely low levels. This strategy of taking all reasonable actions to maintain the health of our dealers has thus far led to very manageable levels of dealer exits, and any related Brunswick boat repurchase obligations.

"The factors that affected our revenues and earnings in the previous two quarters of 2009 continued into the third, including lower overall unit sales levels across our entire company, combined with higher discounts and incentives to facilitate retail boat sales, particularly of older boat models. During the third quarter, the company continued to experience reduced fixed-cost absorption and higher pension and bad debt expenses. Offsetting these factors were cost savings generated from our successful and ongoing fixed-cost reduction activities and lower restructuring charges, along with the absence of large impairment and tax charges incurred in the third quarter of last year," McCoy said.

Third Quarter Results

For the third quarter of 2009, the company reported net sales of $665.8 million, down from $1,038.8 million a year earlier. For the quarter, the company reported an operating loss of $109.4 million, which included $28.8 million of restructuring charges. In the third quarter of 2008, the company had an operating loss of $566.3 million, which included $534.2 million of impairment and restructuring charges.

For the quarter, Brunswick reported a net loss of $114.3 million, or $1.29 per diluted share, as compared with a net loss of $729.1 million, or $8.26 per diluted share, for the third quarter of 2008. The diluted loss per share for the third quarter of 2009 included restructuring charges of $0.32 per diluted share and a $0.24 per diluted share benefit from special tax items. Diluted earnings per share for the third quarter of 2008 included $4.59 per diluted share of impairment and restructuring charges, and $3.34 per diluted share of non-cash charges for special tax items.