Brunswick Corporation : Brunswick's Preliminary First Quarter Revenues Reflect 3 Percent Decline
Weather has Negative Effect on Marine and Bowling Segments;
Maintains Previously Stated 2014 EPS Guidance
LAKE FOREST, Ill., April 8, 2014 -- Brunswick Corporation (NYSE: BC) today
announced that preliminary first quarter 2014 revenues reflect a 3 percent
decline, compared to the prior year, primarily due to harsh weather trends that
have adversely affected demand in its Marine and Bowling & Billiards segments.
The Company anticipates its first quarter diluted earnings per common share will
be in the range of $0.59 to $0.60.
"Weather conditions in important marine markets had a negative impact on first
quarter U.S. retail and wholesale demand," said Brunswick Chairman and Chief
Executive Officer Dustan E. McCoy. "The severity of the weather patterns has not
only reduced sales, but it has also masked the underlying demand for our boat
and engine products. However, at this very early point in the marine season, we
are reaffirming our previously stated full-year diluted earnings per common
share, as adjusted, estimated range of $2.40 to $2.55."
First Quarter Earnings and Conference Call
Brunswick will release its first quarter 2014 financial results before the
market opens on Thursday, April 24, 2014, by way of an advisory release,
notifying the public that the complete and full-text results will be available
on the Company's website at http://www.brunswick.com/investors/. The results
also will be available on the SEC's website with the Form 8-K filing of the
release at http://goo.gl/wJQN1.
The Company will hold a conference call at 10 a.m. CDT April 24, 2014, hosted by
Dustan E. McCoy, chairman and chief executive officer, William L. Metzger,
senior vice president and chief financial officer, and Bruce J. Byots, vice
president - corporate and investor relations.
Security analysts and investors wishing to participate via telephone should call
866-318-8617 (passcode: Brunswick Q1). Callers outside of North America should
call 617-399-5136 (passcode: Brunswick Q1) to be connected. These numbers can
be accessed 15 minutes before the call begins, as well as during the call.
To listen via Internet go to http://www.brunswick.com/investors/. Please go to
the website at least 15 minutes before the call to register, download and
install any needed audio software. Dial-in numbers can be accessed 15 minutes
before the call begins, as well as during the call. A replay of the conference
call will be available through midnight CDT Thursday, May 10, 2014, by calling
888-286-8010 or international dial 617- 801-6888 (passcode: 14661710). The
replay also will be available at www.brunswick.com.
Forward-Looking Statements
Certain statements in this news release are forward-looking as defined in the
Private Securities Litigation Reform Act of 1995. Such statements are based on
current expectations, estimates and projections about Brunswick's business.
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain and often contain words such as "may", "could",
"expect", "intend", "plan", "seek", "estimate", "believe", "predict",
"potential" or "continue". These statements are not guarantees of future
performance and involve certain risks and uncertainties that may cause actual
results to differ materially from expectations as of the date of this news
release. These risks include, but are not limited to: the effect of adverse
general economic conditions, including the amount of disposable income available
to consumers for discretionary purchases, tight consumer credit markets, and the
level of consumer confidence on the demand for marine, fitness, billiards and
bowling equipment, products and services; the ability of dealers and customers
to secure adequate access to financing and the Company's ability to access
capital and credit markets; the ability to maintain strong relationships with
dealers, distributors and independent boat builders; the ability to maintain
effective distribution and develop alternative distribution channels without
disrupting incumbent distribution partners; the ability to successfully manage
pipeline inventories and respond to any excess supply of repossessed and aged
boats in the market; credit and collections risks, including the potential
obligation to repurchase dealer inventory; the risk of losing a key account or a
critical supplier; the strength and protection of the Company's brands and other
intellectual property; the ability to spread fixed costs while establishing a
smaller manufacturing footprint; the ability to successfully complete
restructuring efforts in accordance with projected timeframes and costs; the
ability to obtain components, parts and raw materials from suppliers in a timely
manner and for a reasonable price; the need to meet pension funding obligations;
the effect of higher energy and logistics costs, interest rates and fuel prices
on the Company's results; competitive pricing pressures, including the impact of
inflation and increased competition from Asian competitors; the ability to
develop new and innovative products in response to changing retail demands and
expectations that are differentiated for the global marketplace at a competitive
price and in compliance with applicable laws; the effect of competition from
other leisure pursuits on the level of participation in boating, fitness,
bowling and billiards activities; the risk of product liability, warranty and
other claims in connection with the manufacture and sale of products; the
ability to respond to and minimize the negative financial impact of legislative
and regulatory developments, including those related to environmental
restrictions, climate change, healthcare costs, taxes and employee benefits; the
ability to maintain market share, particularly in high-margin products;
fluctuations in the Company's stock price due to external factors; the ability
to maintain product quality and service standards expected by customers; the
ability to increase manufacturing operations and meet production targets within
time and budgets allowed; negative currency trends, including shifts in exchange
rates; competition from new technologies; the ability to complete environmental
remediation efforts and resolve claims and litigation at the cost estimated; the
uncertainty and risks of doing business in international locations, including
international political instability, civil unrest and other risks associated
with operations in emerging markets; the risk of having to record an impairment
to the value of goodwill and other assets; the effect that catastrophic events
may have on consumer demand and the ability to manufacture products, including
hurricanes, floods, earthquakes, and environmental spills; the effect of weather
conditions on demand for marine products and retail bowling center revenues; the
risk of losing individuals who are key contributors to the organization; and
risks associated with the Company's information technology systems, including
the continued use of legacy systems and the risk of a failure of or attacks on
the Company's information systems, which could result in data security breaches,
lost or stolen assets or information, and associated remediation costs.
Additional risk factors are included in the Company's Annual Report on Form 10-K
for 2013. Such forward-looking statements speak only as of the date on which
they are made and Brunswick does not undertake any obligation to update any
forward-looking statements to reflect events or circumstances after the date of
this news release, or for changes made to this document by wire services or
Internet service providers.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill
"Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury
and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard
engines; MotorGuide trolling motors; Attwood marine parts and accessories; Land
'N' Sea, Kellogg Marine, and Diversified Marine parts and accessories
distributors; Bayliner, Boston Whaler, Brunswick Commercial and Government
Products, Crestliner, Cypress Cay, Harris FloteBote, Lowe, Lund, Meridian,
Princecraft, Quicksilver, Rayglass, Sea Ray and Uttern boats; Life Fitness and
Hammer Strength fitness equipment; Brunswick bowling centers, equipment and
consumer products; Brunswick billiards tables and table tennis. For more
information, visit http://www.brunswick.com.
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| Contact: | Bruce Byots |
| | Vice President - Corporate and Investor Relations |
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| Phone: | 847-735-4612 |
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| Email: | bruce.byots@brunswick.com |
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+----------+---------------------------------------------------------+
| Contact: | Daniel Kubera |
| | Director - Media Relations and Corporate Communications |
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| Phone: | 847-735-4617 |
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| Email: | daniel.kubera@brunswick.com |
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Source: Brunswick Corporation via GlobeNewswire
[HUG#1775573]
Released April 8, 2014