BRUNSWICK REPORTS FOURTH QUARTER, YEAR-END RESULTS
BRUNSWICK REPORTS FOURTH QUARTER, YEAR-END RESULTS SKOKIE, Ill., Feb. 11 /PRNewswire/ -- Brunswick Corp. (NYSE: BC)
today announced that for the fourth quarter ended Dec. 31, 1991, net sales declined two percent to $523.5 million from $533.7 million in the fourth quarter of 1990. The company reported a net loss of $13.7 million, or 15 cents per share, compared with a net loss of $17.1 million, or 19 cents per share, in the comparable period of 1990. Results for the fourth quarter of 1991 include a $9.3 million (10 cents per share) increase in income taxes, reflecting an adjustment to the company's effective tax rate for the year, and an after-tax provision of $5 million ($8 million pretax), or 6 cents per share, for litigation matters. Results for the quarter ended Dec. 31, 1990, include an after- tax charge of $10 million ($15 million pretax), or 11 cents per share, for the consolidation of operations in the Marine segment.
For the year 1991 the company reported a sales decrease of 16 percent to $2.09 billion from $2.48 billion in 1990 and a net loss of $23.7 million, or 27 cents per share, compared with net earnings of $70.9 million, or 80 cents per share, in the prior year. For all of 1991, the company recorded an after-tax provision of $23.6 million ($38 million pretax), or 27 cents per share, for litigation matters. Net earnings for the year ended Dec. 31, 1990 include an after-tax gain of $46.7 million ($84.2 million pretax), or 53 cents per share, from the disposition of certain businesses of the Technical segment. "There were some positive developments in the quarter," commented Brunswick Chairman, President and Chief Executive Officer Jack F. Reichert. "In our largest business segment, Marine, sales were up two percent, the first time we have reported increased marine sales in more than three years. And, this segment reduced its operating loss by 51 percent, after adjusting the fourth quarters for a $5 million litigation provision in 1991 and for the $15 million provision for Marine segment consolidations in 1990. This is continued evidence that the steps we have taken to operate our marine businesses more efficiently have proven to be effective. For the year, our Marine sales were $1.37 billion, down 17 percent from sales of $1.65 billion in 1990. "In addition, although 1991 was the worst year since World War II for the pleasure boating industry in terms of total domestic sales, we successfully reduced our company inventories, and our dealers' inventories are at their lowest level in at least a decade," Reichert added. The company's recreation segment reported sales of $136.8 million, up 10 percent for the quarter. However, operating earnings declined 15 percent to $17.6 million. This is due primarily to reduced domestic capital equipment sales, increased warranty costs and currency fluctuations which negatively impacted results of the Brunswick Division. Both Zebco and the Brunswick Recreation Centers Divisions reported record years in sales and operating earnings, according to Reichert. Year-to-year comparisons in the Technical segment are not meaningful because of the 1990 dispositions of certain businesses in this segment. For the quarter, this segment's only unit, the Brunswick Technical Group (formerly the Defense Division) was impacted by the general decline in domestic defense spending. The group reported sales of $63.7 million and operating earnings of $6.6 million compared with sales of $77.1 million and operating earnings of $9.0 million in the fourth quarter of 1990. Headquartered in Skokie, Ill., Brunswick Corp. serves global marine recreation/leisure and defense/technical markets. Its stock is traded on the New York, London, Tokyo, Midwest and Pacific Stock Exchanges. BRUNSWICK CORP. Comparative Condensed Consolidated Results of Operations (In millions except per share data -- Unaudited) Periods ended Dec. 31 Quarters Years 1991 1990 1991 1990 Net sales $523.5 $533.7 $2,088.3 $2,477.6 Earnings (loss) before income taxes (8.3) (27.1) (22.2) 122.7 Income tax provision (benefit) 5.4 (10.0) 1.5 51.8 Net earnings (loss) $(13.7) $(17.1) $ (23.7) $ 70.9 Earnings (loss) per common share $( .15) $ (.19) $ (.27) $ .80 Average shares used for computation of earnings (loss) per common share 88.6 88.3 88.4 88.1 Effective tax rate (pcts.) N/M (36.9) N/M 42.2 Results for the quarter and the 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 for the quarter and year 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. Net earnings for the quarter and year ended Dec. 31, 1990, include an after-tax charge of $10.0 million ($15.0 million pretax) for the consolidation of operations in the Marine segment. Net earnings for the year ended Dec. 31, 1990, include an after-tax gain of $46.7 million ($84.2 million pretax) from the disposition of businesses of the technical segment. BRUNSWICK CORP. Comparative Condensed Segment Information (In millions - Unaudited) Marine Recreation Technical Corporate Total Quarter ended Dec. 31, 1991 Net sales $323.0 136.8 63.7 -- $523.5 Operating earnings (loss) (18.0) 17.6 6.6 (10.0) $(3.8) Quarter ended Dec. 31, 1990 Net sales $317.3 124.8 91.6 -- $533.7 Operating earnings (loss) (41.8) 20.8 9.1 (5.9) $(17.8) Year ended Dec. 31, 1991 Net sales $1,368.3 472.8 247.2 -- $2,088.3 Operating earnings (loss) $(30.5) 52.5 18.3 (40.4) $(0.1) Year ended Dec. 31, 1990 Net sales $1,651.7 455.2 370.7 -- $2,477.6 Operating earnings $27.7 57.9 21.0 (33.3) $73.3 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. Operating earnings (loss) for the quarter and year ended Dec. 31, 1990, include a $15.0 million charge for consolidation of operations in the marine segment. Technical segment results for the quarter ended Dec. 31, 1990 include net sales of $14.5 million and operating earnings of $0.1 million from businesses that were sold in 1990. Technical segment results for the year ended Dec. 31, 1990, include net sales of $119.6 million and operating earnings of $0.8 million from businesses that were sold in 1990. -0- 2/11/91 /CONTACT: William R. McManaman, vice president-finance, 708-470-4840, or Ross H. Stemer, 708-470-4851, both of Brunswick/ (BC) CO: Brunswick Corp. ST: Illinois IN: LEI SU: ERN SM -- NY015 -- 8685 02/11/92 09:45 EST
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|Date:||Feb 11, 1992|
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