Brunswick Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Fiscal Year Ended December 31, 2011; Provides Earnings Guidance for the Fiscal Year 2012; Reports Impairment Charges for Fourth Quarter 2011
January 26, 2012 at 12:46 pm
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Brunswick Corporation announced unaudited consolidated earnings results for the fourth quarter and fiscal year ended December 31, 2011. For the fourth quarter, the company reported net sales of $789.1 million, operating losses of $18.1 million, loss before interest, loss on early extinguishment of debt and income taxes of $23.4 million, loss before income tax of $43.0 million and net loss of $29.6 million or $0.33 diluted loss per share as compared to net sales of $728.8 million, operating losses of $74.7 million, loss before interest, loss on early extinguishment of debt and income taxes of $76.4 million, loss before income tax of $99.0 million and net loss of $104.1 million or $1.17 diluted loss per share for the same period of previous year. Net debt (defined as total debt, less cash and marketable securities) was $185.0 million, an increase of $11.5 million from year-end 2010 levels.
For the year, the company reported net sales of $3,748.0 million, operating earnings of $192.4 million, earnings before interest, loss on early extinguishment of debt and income taxes of $187.0 million, earnings before income tax of $43.0 million, net earnings of $71.9 million or $0.78 diluted earnings per share, net cash provided by operating activities of $89.1 million and capital expenditures of $90.0 million as compared to net sales of $3,403.3 million, operating earnings of $16.3 million, earnings before interest, loss on early extinguishment of debt and income taxes of $11.8 million, loss before income tax of $84.7 million, net loss of $110.6 million or $1.25 basic and diluted loss per share, net cash provided by operating activities of $205.4 million and capital expenditures of $57.2 million for the same period of previous year.
The company currently expects its fiscal year 2012 earnings per share to be in the range of $1.20 per share to $1.50 per diluted share. Given its currently earnings guidance range, the company expects its overall 2012 effective tax rate to be consistent with 2011 or approximately 20%. The company expects to continue to generate positive strong cash flow. As a result of continued cost reductions and improvements in operating efficiencies, its target gross margin for 2012 is approximately 24%, up 140 basis points from 2011. 2012 capital expenditures, SG&A and R&D expenses will be higher than in 2011 as its finds growth initiatives, partially offset by a modest reduction in pension expense.
For fourth quarter 2011, the company reported impairment charges of $4.5 million compared to $18.5 million for the same period a year ago.
Brunswick Corporation designs, manufactures and markets recreational marine products, including marine propulsion products and boats, as well as parts and accessories for the marine and RV markets. Its segments include Propulsion, Engine Parts and Accessories (Engine P&A), Navico Group and Boat. The Propulsion segment designs, manufactures and sells engines, controls, rigging, and propellers globally. The Engine P&A segment sells products such as engine parts and consumables including oils and lubricants, electrical products, boat parts and systems, and also includes its marine parts and accessories distribution businesses. The Navico Group segment designs, develops, manufactures, and markets products and systems for the marine and RV, specialty vehicle markets. The Boat segment consists of the Brunswick Boat Group (Boat Group), which manufactures and distributes recreational boats, and Business Acceleration. Its boat brands include Boston Whaler, Lund, Sea Ray and Bayliner.
Brunswick Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Fiscal Year Ended December 31, 2011; Provides Earnings Guidance for the Fiscal Year 2012; Reports Impairment Charges for Fourth Quarter 2011