BNW Brunswick Corp

RNS Number:5975R
Brunswick Corp
21 September 2005

Brunswick Assesses Impact of Fuel Prices, Consumer Confidence and Hurricane

LAKE FOREST, Ill., Sept 20, 2005  -- Brunswick Corporation (NYSE: BC) announced
today that the combined effects of high fuel prices, lower consumer confidence
and Hurricane Katrina could contribute to a slowing of the economy just as the
marine industry moves into the off season.

"Retail demand for our marine products has remained robust relative to last year
with several of our boat brands registering double-digit retail growth in July
and August. Further, our pipeline inventories remain at healthy levels," said
Brunswick Chairman and Chief Executive Officer George W. Buckley. "As we go into
the marine off season when retail activity tapers off, however, our financial
results are driven primarily by demand at the wholesale level, which is affected
by confidence in the economy. We are concerned that if high fuel prices, the
drop in consumer confidence and Katrina lead to slower overall economic
conditions, then wholesale demand for marine products could be affected. We
believe that in this confusing economic environment, it is prudent for us to be
cautious and proactively manage pipeline inventories down even further still.
Therefore, we intend to cut production rates to position ourselves and our
marine customers in the best possible way entering the marine off season. Should
the economy not be impacted by this confluence of events, or in fact accelerate,
we will readjust production rates to meet stronger wholesale demand. In
addition, we have several new products scheduled to launch in the coming months
and healthy pipelines permit these products to reach the marketplace in a rapid
and effective fashion."

"Given this developing view, we have tempered the assumptions behind our
previous earnings estimates," Buckley added. "We continue to see strong
performances from our fitness, electronics and bowling and billiards businesses,
which are heading into their stronger seasons. We will also benefit from a more
favorable tax structure brought on by investments in our global manufacturing
footprint. Lower sales and fixed cost absorption in our marine businesses,
however, will temporarily offset those benefits. Most recently, we had estimated
that diluted earnings per share for 2005 would fall in the range of $3.30 to
$3.40. This is compared with $2.67 per diluted share reported a year ago, which
excludes $0.10 from a nonrecurring tax benefit recorded in the third quarter of
2004. Our current thinking is that a range of $3.20 to $3.25 is more appropriate
under the circumstances. For the quarter ending Sept. 30, 2005, we are
estimating diluted earnings per share in the range of $0.70 to $0.74, which
compares to $0.65 in the year-ago third quarter, excluding the previously
mentioned $0.10 tax benefit in 2004." The company noted that estimates for 2005
exclude a $0.32 per diluted share gain on the sale of securities recorded in the
first quarter of the year, as well as anticipated tax adjustments, which are
estimated to be in the same order of magnitude as the $0.10 per diluted share
tax benefit recorded in the third quarter of 2004.

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 filing. These risks include,
but are not limited to: the effect of a weak economy and stock market on
consumer confidence and thus the demand for marine, fitness, billiards and
bowling equipment and products; competitive pricing pressures; the success of
new product introductions; the ability to maintain market share in high-margin
products; competition from new technologies; imports from Asia and increased
competition from Asian competitors; the ability to obtain component parts from
suppliers; the ability to maintain effective distribution; the financial
strength of dealers, distributors and independent boat builders; the ability to
transition and ramp up certain manufacturing operations within the time and
budgets allowed; the ability to maintain product quality and service standards
expected by our customers; the ability to successfully manage pipeline
inventories; the success of global sourcing and supply chain initiatives; the
ability to successfully integrate acquisitions; the success of marketing and
cost management programs; the ability to develop product technologies that
comply with regulatory requirements; the ability to complete environmental
remediation efforts and resolve claims and litigation at the cost estimated; the
impact of weather conditions on demand for marine products and retail bowling
center revenues; shifts in currency exchange rates; adverse foreign economic
conditions; and the impact of interest rates and fuel prices on demand for
marine products. Additional factors are included in the company's Annual Report
on Form 10-K for 2004 and Quarterly Report on Form 10-Q for the quarter ended
June 30, 2005.

About Brunswick

Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill
"Genuine Ingenuity" in all its leading consumer brands, including Mercury and
Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines;
MotorGuide trolling motors; Teignbridge propellers; MotoTron electronic
controls; Northstar marine electronics; Navman marine and GPS-based products;
IDS dealer management systems; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston
Whaler, Crestliner, HarrisKayot, Hatteras, Lowe, Lund, Maxum, Meridian, Ornvik,
Palmetto, Princecraft, Quicksilver, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine,
Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories;
Land 'N' Sea and Kellogg Marine parts and accessories distributor; Life Fitness,
Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers,
equipment and consumer products; Brunswick billiards tables; and Valley-Dynamo
pool, Air Hockey and foosball tables. For more information, visit
www.brunswick.com

Kathryn Chieger, Vice President - Corporate and Investor Relations, Brunswick
Corporation, +1-847-735-4612




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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