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BRUNSWICK ANNOUNCES 1992 FINANCIAL RESULTS AND DECISION TO DIVEST ITS TECHNICAL SEGMENT

 SKOKIE, Ill., Feb. 9 /PRNewswire/ -- Brunswick Corporation (NYSE: BC) today reported results for its fourth quarter and year ended Dec. 31, 1992. Operating earnings from continuing operations more than quadrupled in 1992 versus 1991. Aftertax losses of $26.3 million for the year and $28.1 million for the fourth quarter were attributable to decisions to implement a required accounting change in 1992, and to divest its technical business segment.
 The company adopted FAS 106, which required changes in accounting for employees' postretirement benefits. This accounting change decreased 1992 operating earnings for the fourth quarter and year by $1.1 million ($.7 million after-tax) and $4.5 million ($2.8 million after-tax), respectively, compared to the same periods in 1991. Net earnings for the year were also reduced by $38.3 million after-tax, representing the cumulative, prior years' effect of this accounting change.
 Additionally, the company announced its decision to divest its technical business segment. In that regard, it recorded an after-tax provision of $26.0 million in the fourth quarter for the estimated loss on the divestiture, and to recognize other expenses associated with its former technical segment operations. In addition, the discontinued business incurred a net loss of $1.7 million in 1992, versus net income of $11.3 million in 1991.
 "The technical business segment divestiture reflects the company's strategy to focus on its marine and recreation businesses," according to Brunswick Chairman, President and Chief Executive Officer Jack F. Reichert.
 On a continuing business basis, sales increased 12 percent to $2.06 billion in 1992, from $1.84 billion in 1991. Operating earnings from continuing operations in 1992 rose to $79.8 million compared with a loss of $18.4 million from operations in the prior year. However, operating earnings in 1991 were impacted by $38 million in provisions for litigation matters. Excluding these provisions and the 1992 impact of the accounting change, company-wide operating earnings quadrupled in 1992 over 1991 levels. Net income from continuing operations in 1992 was $39.7 million, or 43 cents per share, versus a loss of $35.0 million, or 40 cents per share, in 1991.
 In the fourth quarter, sales increased one percent to $464.9 million from $459.8 million. Operating earnings were $2.6 million compared with an operating loss of $10.4 million in the fourth quarter of 1991. However, operating earnings in the fourth quarter of 1991 were impacted by $8 million in provisions for litigation matters, while the 1992 operating earnings included the impact of the accounting change. The fourth quarter 1992 net loss from continuing operations was $1.1 million, or one cent per share, versus a net loss from continuing operations of $17.7 million, or 20 cents per share, in the fourth quarter of 1991.
 "Though Marine segment sales declined by four percent in the fourth quarter, they were up 11 percent for the year," Mr. Reichert commented. "And we believe that all of our marine operations have gained retail market share."
 For the year, Marine segment sales were $1.516 billion compared with sales of $1.368 billion in 1991. Operating results, excluding the accounting change in 1992 and legal provisions in 1991, were earnings of $46.1 million in 1992 compared with a loss of $.5 million in 1991.
 "Looking ahead, we are encouraged by results from the January boat shows. Through more than 20 boat shows, unit sales on a percentage basis are up double digits over last year," Mr. Reichert said.
 Recreation segment sales were up 15 percent during the year to $543.3 million, and operating earnings increased 24 percent to $65.2 million ($66.5 million when the impact of the 1992 accounting change is excluded). For the quarter, Recreation segment sales were up 13 percent to $154.8 million and operating earnings rose 47 percent to $25.9 million.
 "The substantial improvement for the quarter and full year in our Recreation segment results was due to a very strong performance by Zebco in the fishing tackle industry and significantly improved results from the Brunswick Division, primarily the result of increased international sales of bowling capital equipment. Brunswick Recreation Centers also had a good year, with a modest sales gain and operating earnings about even with last year's record," the Brunswick C.E.O. explained.
 Headquartered in Skokie, Brunswick Corporation is a multinational company with leadership positions in marine power, pleasure boating and recreation. Its stock is traded on the New York, London, Tokyo, Midwest and Pacific Stock Exchanges.
 BRUNSWICK CORPORATION
 Comparative Condensed Consolidated Results of Operations
 (in millions except per share data)
 Periods ended Quarters Years
 Dec. 31, 1992 1991 1992 1991
 (unaudited)
 Net sales $ 464.9 $459.8 $2,059.4 $1,841.0
 Earns. (loss) from cont.
 operations bef. inc. taxes (1.7) (14.8) 62.0 (40.5)
 Inc. tax provision (benefit) (.6) 2.9 22.3 (5.5)
 Earns. (loss) from cont. opers.
 bef. cumulative effect of
 accounting change (1.1) (17.7) 39.7 (35.0)
 Earns. (loss) from discon.
 operations (1.0) 4.0 (1.7) 11.3
 Estimated loss on divestiture of
 the Technical Segment (26.0) -- (26.0) --
 Cumulative effect of
 accounting change -- -- (38.3) --
 Net earnings (loss) $ (28.1) $(13.7) $ (26.3) $ (23.7)
 Earns. (loss) per common
 share cont. opers. $ (.01) $ (.20) $ .43 $ (.40)
 Discontinued operations (.01) .05 (.02) .13
 Estimated loss on divestiture of
 the Technical Segment (.27) -- (.28) --
 Cumulative effect of accounting
 change -- -- (.41) --
 Net earnings (loss) per common
 share $ (.29) $ (.15) $ (.28) $ (.27)
 Avg. shares used for computation
 of earns. (loss) per
 common share 95.2 88.6 92.7 88.4
 Effective tax rate on cont.
 operations (in percents) 35.3 N/M 36.0 (13.6)
 Results for the quarter and year ended Dec. 31, 1991 include after- tax provisions of $5.0 million ($8.0 million pretax) and $23.6 million ($38.0 million pretax), respectively, for litigation matters.
 The income tax provision on the pretax loss from continuing operations for the quarter ended Dec. 31, 1991 resulted primarily from the inability to utilize $9.3 million of foreign tax credits in the calculation of the consolidated tax provision.
 Results from continuing operations for the quarter and year ended Dec. 31, 1992, include after-tax provisions of $.7 million ($1.1 million pretax) and $2.8 million ($4.5 million pretax), respectively, as the result of the adoption of FAS 106, which required changes in accounting for employees' postretirement benefits.
 Brunswick Corporation
 Comparative Condensed Segment Information
 (unaudited -- in millions)
 Marine Recreation Corporate Total
 Quarter ended Dec. 31, 1992
 Net sales $ 310.1 154.8 -- $ 464.9
 Operating earnings (loss) $ (16.1) 25.9 (7.2) $ 2.6
 Quarter ended Dec. 31, 1991
 Net sales $ 323.0 136.8 -- $ 459.8
 Operating earnings (loss) $ (18.0) 17.6 (10.0) $ (10.4)
 Year ended Dec. 31, 1992
 Net sales $1,516.1 543.3 -- $2,059.4
 Operating earnings (loss) $ 43.0 65.2 (28.4) $ 79.8
 Year ended Dec. 31, 1991
 Net sales $1,368.3 472.7 -- $1,841.0
 Operating earnings (loss) $ (30.5) 52.5 (40.4) $ (18.4)
 Results for the quarter ended Dec. 31, 1991 include a litigation provision of $8.0 million, $5.0 million in the Marine segment and $3.0 million in Corporate. For the year ended Dec. 31, 1991, litigation provisions totalled $38.0 million, $30.0 million in the Marine segment and $8.0 million in corporate.
 Results for the quarter and year ended Dec. 31, 1992 include provisions of $1.1 million ($0.8 million Marine; $0.3 million Recreation) and $4.5 million ($3.1 million Marine; $1.3 million Recreation; $0.1 million Corporate) respectively, as the result of the adoption of FAS 106, which required changes in accounting for employees' postretirement benefits.
 -0- 2/9/93
 /CONTACT: William R. McManaman, vice president - finance, 708-470-4840; Ross H. Stemer, director - investor relations, 708-470-4851; or Adrian W. Sakowicz, director - public relations, 708-470-4131, all of Brunswick Corporation/
 (BC)


CO: Brunswick Corporation ST: Illinois IN: SU: ERN

SH -- NY027 -- 4552 02/09/93 10:33 EST
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Date:Feb 9, 1993
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