Brunswick : Reports Fourth Quarter Results

Brunswick Corporation 1 N. Field Court Lake Forest, IL 60045 Telephone [phone] Facsimile 847.735.4750‌‌‌‌‌

Release: IMMEDIATE Contact: Phillip Haan

Vice President - Investor Relations

Phone: [phone]

Contact: Daniel Kubera

Director - Media Relations and Corporate Communications Phone: [phone]

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Brunswick Reports Fourth Quarter and Full-Year Results Full-Year Results: 9% Growth in Revenue; GAAP Diluted EPS of $2.98 and Diluted EPS, as adjusted, of $3.48; 2017 Guidance: Revenue Growth of 6% to 8% and Diluted EPS, as adjusted, of $3.90 to $4.05 LAKE FOREST, Ill., Jan. 26, 2017 -- Brunswick Corporation (NYSE: BC) today reported results for the fourth quarter and full-year of 2016. 2016 Full-Year Highlights:

• Consolidated net sales increased 9 percent versus 2015; on a constant currency basis, net sales increased 10 percent; excluding the impact of acquisitions, sales on a constant currency basis increased 5 percent.

• On a GAAP basis, operating earnings increased by 24 percent versus the prior year. Adjusted operating earnings were up 13 percent from 2015.

• On a GAAP basis, 2016 diluted EPS of $2.98 increased by 24 percent versus 2015. Diluted EPS, as adjusted, of $3.48 increased by 19 percent.

• Net cash from operations was $426 million and free cash flow was $234 million; both were improved versus the prior year.

"Our results in 2016 represent the seventh consecutive year of strong improvements in operating performance," said Brunswick Chairman and Chief Executive Officer Mark Schwabero. "These outstanding results reflect the continued execution of our business strategy by our global workforce.

"Our top line reflected the benefits of our acquisition strategy, particularly in our Fitness segment, and strong growth rates in both fiberglass outboard boats and marine parts and accessories. This growth also included solid performance in aluminum boats, outboard engines and fiberglass sterndrive/inboard boats.

"The U.S. marine market exhibited solid fundamentals and growth, which are supported by stable boating participation, favorable replacement cycle dynamics and innovative products being introduced throughout the marketplace. Overall, international marine markets were challenging, including weak demand in certain markets such

as Latin America, the Middle East and Africa as well as Canada. Our product successes in both our Engine and Boat segments have enabled continued market share gains and mix benefits.

"In addition, our fitness business benefited from solid demand, particularly in overall global commercial fitness markets. This foundational core growth, combined

with favorable trends in the rehabilitation and active aging categories, as well as increased participation in group exercise activities, is providing a dynamic marketplace in which to execute our fitness growth strategy. We continue to make outstanding

progress integrating the Cybex business into our Fitness segment and slightly exceeded our 2016 earnings objective for this acquisition. We remain well positioned to meet the long-term earnings objectives for this acquisition," Schwabero said.

"Consolidated adjusted operating earnings in 2016 increased by 13 percent as compared to the prior year, including the impact of planned investments in growth initiatives. The improvement in operating earnings, combined with a lower effective tax rate, as adjusted, and fewer shares outstanding, led to a 19 percent increase in diluted earnings per common share, as adjusted," Schwabero concluded.

Discontinued Operations

On May 22, 2015, the Company completed the sale of its Bowling Products business. The results of this business are reported as discontinued operations. For all periods presented in this release, all figures and outlook statements incorporate this change and reflect continuing operations only, unless otherwise noted.

2016 Full-Year Results

For the year ended Dec. 31, 2016, the Company reported net sales of $4,488.5 million, up from $4,105.7 million in 2015. For the year, operating earnings were $409.0 million, which included a $55.1 million pension settlement charge and $15.6 million of restructuring, integration and impairment charges. In 2015, the Company reported operating earnings of $331.7 million, which included an $82.3 million pension settlement charge and $12.4 million of restructuring and impairment charges.

For 2016, the Company reported net earnings of $274.4 million, or $2.98 per diluted share, compared with net earnings of $227.4 million, or $2.41 per diluted share, for

2015. The diluted EPS for 2016 included a $0.38 per diluted share pension settlement charge; an $0.11 per diluted share of restructuring, integration and impairment charges and a $0.01 per diluted share expense from special tax items. Diluted EPS for 2015 included a $0.54 per diluted share pension settlement charge; an $0.11 per diluted share of restructuring and impairment charges and a $0.13 per diluted share benefit from special tax items.

Fourth Quarter Highlights:

• Consolidated net sales increased 10 percent versus fourth quarter 2015; on a constant currency basis, net sales also increased 10 percent; excluding the impact of acquisitions, sales on a constant currency basis increased 4 percent.

• On a GAAP basis, operating earnings increased $55.6 million from fourth quarter 2015. Adjusted operating earnings increased to $90.5 million, or 34 percent versus 2015.

• On a GAAP basis, diluted EPS of $0.19, an increase of $0.29 versus the fourth quarter of 2015. Diluted EPS, as adjusted, of $0.67 represented a 29 percent increase compared to the prior year.

Fourth Quarter Results

For the fourth quarter of 2016, the Company reported net sales of $1,083.0 million, up from $986.1 million a year earlier. For the quarter, the Company reported operating earnings of $28.6 million, which included a $55.1 million pension settlement charge and

$6.8 million of restructuring, integration and impairment charges. In the fourth quarter of 2015, the Company had an operating loss of $27.0 million, which included an $82.3