Brunswick Rpts EPS of $0.59

RNS Number:8872H
Brunswick Corp
27 January 2005

Brunswick Reports EPS of $0.59 in Fourth Quarter

LAKE FOREST, Ill., Jan. 27 -- Brunswick Corporation (NYSE: BC) reported today
net earnings of $58.8 million, or $0.59 per diluted share, for the fourth
quarter of 2004, up from net earnings of $39.9 million, or $0.43 per diluted
share, for the year-ago quarter. The company said the 47 percent increase in net
earnings came on a 23 percent increase in sales and a 42 percent improvement in
operating earnings.

Commenting on the quarter, Brunswick Chairman and Chief Executive Officer George
W. Buckley said, "We had a strong finish to an excellent year with our Marine
Engine, Boat and Fitness segments posting double-digit sales increases for the
quarter. Excluding acquisitions completed earlier in the year, net sales for the
quarter were up 16 percent. Due to our continual emphasis on operations
excellence and effective cost management, we leveraged these sales gains into
increased operating earnings and a 90-basis-point improvement in operating
margins to 6.3 percent for the final quarter of the year."

Fourth Quarter Results

For the quarter ended Dec. 31, 2004, the company reported that net sales
increased 23 percent to $1,333.8 million, up from $1,086.9 million a year
earlier. Sales in the fourth quarter of 2004 benefited from higher boat volumes
and acquisitions. Led by double-digit improvements in the Marine Engine, Boat
and Bowling & Billiards segments, operating earnings rose 42 percent to $83.4
million, compared with $58.7 million in the year-ago quarter, and operating
margins improved to 6.3 percent from 5.4 percent. Net earnings rose to $58.8
million, or $0.59 per diluted share, up from $39.9 million, or $0.43 per diluted
share, for the fourth quarter of 2003.

2004 Results

For the year ended Dec. 31, 2004, the company had net sales of $5,229.3 million,
up 27 percent from $4,128.7 million in 2003. Sales in 2004 benefited from
acquisitions made earlier in the year, as well as incremental sales from
acquisitions completed in 2003. Excluding acquisitions, net sales were up 16
percent. Operating earnings reached $400.7 million for the year, up 81 percent
from $221.4 million in 2003, and operating margins reached 7.7 percent versus
5.4 percent a year ago. Operating earnings for 2003 include a $25.0 million
litigation charge ($16.0 million after tax, or $0.18 per diluted share) recorded
in the first quarter of 2003. Excluding the litigation charge, operating
earnings were $246.4 million and operating margins were 6.0 percent in 2003. Net
earnings for 2004 doubled to $269.8 million, or $2.77 per diluted share,
compared with $135.2 million, or $1.47 per diluted share, in 2003. Excluding the
previously mentioned litigation charge, net earnings totaled $151.2 million, or
$1.65 per diluted share, in 2003.

For the year, higher sales and effective cost management helped to mitigate
increased research and development (R&D) spending, higher variable compensation
costs, costs of integrating acquisitions, investments in new manufacturing
plants and higher spending to support new product introductions.

The company said that, during the third quarter of 2004, the Internal Revenue
Service completed its routine audit of tax years 1998 through 2001. Following
the completion of the examination of this four-year period, Brunswick reduced
its tax reserves and, consequently, its tax provision by approximately $10
million in the third quarter of 2004. This is equivalent to approximately $0.10
per diluted share. In addition, Brunswick reduced its effective tax rate for the
year to 31.4 percent, excluding the impact of the audits, compared with 32.75
percent in 2003. This was due to effective tax planning, higher tax benefits
from export sales and higher research and development tax credits. The company
said it expects its effective tax rate for 2005 to be between 31 percent and 32
percent.

Marine Engine Segment

The Marine Engine segment, consisting of the Mercury Marine Group and Brunswick
New Technologies, reported sales of $584.6 million in the fourth quarter of
2004, up 23 percent from $473.4 million in the year-ago fourth quarter.
Operating earnings in the fourth quarter were up 28 percent to $34.3 million
versus $26.7 million, and operating margins increased to 5.9 percent compared
with 5.6 percent for the same quarter in 2003.

For the full year, Marine Engine segment sales rose 23 percent to $2,353.2
million, and operating earnings were $243.2 million versus $171.1 million a year
ago. Operating margins increased by 130 basis points for the year to 10.3
percent from 9.0 percent in 2003.

"For the year, Mercury Marine benefited from strong international sales, which
were up 17 percent for the year to $713 million," commented Buckley. "Our
domestic operations also posted double-digit sales gains with domestic outboards
up 13 percent to $476 million, domestic sterndrive engines up 19 percent to $542
million, and our parts and services businesses up 20 percent to $329 million.
Operating margin improvement was registered in all units with the exception of
domestic outboards where we continue to experience significant competitive
pricing pressure from Japanese imports."

"Mercury, however, got a well-earned sales boost from the introduction of the
Verado family of outboard engines earlier in the year," Buckley said. "This
high-horsepower, four-stroke engine is the only supercharged production outboard
engine in the world. We will be launching three more models within the Verado
family next month. Verado has received critical acclaim, and should help to
offset to some extent a continually challenging domestic outboard market, in
which we believe unfair trade practices by Japanese competitors have
artificially depressed prices and harmed American manufacturers, severely
hampering operating margins."

"Brunswick New Technologies (BNT), our newest operating unit, also posted strong
gains with sales reaching $202 million for the year," Buckley explained. "BNT
results were led by Navman and BNT Marine Electronics, which markets the
Northstar brand of components. BNT is quickly completing an aggressive push to
broaden its product line and expand its markets. By the middle of this year, BNT
will offer a full suite of marine electronics, which we will continue to
integrate and install at the factory level to improve the convenience, quality
and reliability of our marine products."

Boat Segment

The Brunswick Boat Group comprises the Boat segment and includes the Sea Ray,
Bayliner, Maxum, Hatteras, Sealine, Meridian, Boston Whaler, Trophy, Sea Pro,
Baja, Crestliner, Lowe, Lund and Princecraft boat brands and the Land 'N' Sea,
Swivl-Eze and Attwood marine parts and accessories distribution and
manufacturing businesses. The Boat segment reported sales for the fourth quarter
of $561.9 million, up 35 percent compared with $414.9 million in the fourth
quarter of 2003. Boat segment sales benefited from healthy sales across its boat
brands, including those of its Aluminum Boat Group, which was formed in early
2004 with the acquisition of the Crestliner, Lowe and Lund brands.

Excluding the aluminum boat acquisitions, sales increased 17 percent in the
quarter, pointing to strong organic growth within the Boat Group, particularly
among Boston Whaler, Sea Ray, US Marine and Hatteras, all of which posted
double-digit sales gains. Operating earnings for the Boat segment increased to
$24.2 million, up 160 percent from $9.3 million reported in the fourth quarter
of 2003, and operating margins increased by 210 basis points to 4.3 percent.

For 2004, Boat segment sales were up 40 percent to $2,271.1 million from
$1,616.9 million in 2003. Excluding incremental sales from acquisitions, Boat
segment sales were up 19 percent for the year. Operating earnings for the Boat
segment more than doubled to $149.3 million from $63.9 million in 2003, and
operating margins improved to 6.6 percent compared with 4.0 percent in 2003.

"The strong growth in sales reflects the first increase in retail demand for the
boating industry since 2000 and the success of new and innovative products
introduced in 2004," Buckley said. "We are also pleased to report the successful
turnaround of our US Marine Division, which returned to profitability for the
first time since 2000. This, along with effective cost management, was a
significant contributor to the improved operating earnings performance of the
Boat segment."

"Our Boat Group has done a wonderful job of continuing to broaden and build its
presence and appeal in the marketplace," Buckley added. "The acquisition of the
Lowe, Lund and Crestliner aluminum boat brands earlier in the year, along with
our Princecraft brand, has positioned Brunswick in an important segment of the
market that we had previously underserved. Our offerings in the offshore
saltwater fishing category were also enhanced with the acquisition of the Sea
Pro brands last month. With an eye towards deeper and better partnerships with
our distribution network, we continue to seek ways to better serve our dealers
and deliver superior products to consumers."

"By offering a wider range of products and services, including the growing
ability to provide parts on a same-day or next-day basis to nearly all of North
America, we continue to make our dealers more competitive and able to serve a
larger portion of boating consumers," said Buckley. "Developing a boat parts and
accessories business is an important component of our 'embrace the dealer'
strategy. Benefiting from strategic acquisitions completed in 2003, boat P&A
sales reached $193 million in 2004."

"Further, we have stayed the course in product development to bring innovative,
affordable and easy-to-use products to excite current boaters and draw others to
the water," Buckley said. "During 2004 we saw strong demand across our complete
product line, from our affordable Bayliner 175 (an entry- level boat, engine and
trailer package with a suggested retail price of $9,995), through our Sea Ray
cruisers and Hatteras yachts. We have continued to invest in new products, with
more than 37 new models scheduled for launch in 2005."

Fitness Segment

The Fitness segment is comprised of the Life Fitness Division, which
manufactures and sells Life Fitness, Hammer Strength and ParaBody fitness
equipment. Segment sales in the fourth quarter of 2004 totaled $173.2 million,
up 10 percent from $157.2 million in the year-ago quarter. Operating earnings
declined 13 percent to $24.7 million from $28.3 million, and operating margins
were 14.3 percent, down from 18.0 percent in the fourth quarter of 2003.

For 2004, the Fitness segment reported sales of $558.3 million, up 15 percent
from $486.6 million in 2003. Operating earnings in 2004 increased to $45.2
million from $29.8 million, and operating margins were 8.1 percent versus 6.1
percent a year ago. Operating earnings in 2003 include a $25.0 million
litigation charge recorded in the first quarter of 2003. Excluding the charge,
Fitness segment operating earnings for 2003 totaled $54.8 million, and operating
margins were 11.3 percent.

"During the year, Life Fitness experienced a shift in its sales mix to popular,
but lower-margin strength products. It also coped with increasing prices for raw
materials such as steel as well as weak performance from the Omni retail chain,
the divestiture of which was completed at the end of last year," Buckley
explained. "Additionally, the impact of manufacturing inefficiencies during the
ramp-up of production at our expanded Ramsey, Minn., plant in early 2004 put
additional pressure on margins. Life Fitness is beginning to see the results of
cost cutting measures and other productivity improvements pursued to mitigate
operating margin pressure."

"Life Fitness has recently introduced several new products, maintaining its
tradition of innovation, which have been well received in the marketplace,"
Buckley said. "These include the Life Fitness G5 cable motion system. This
product joins an ever expanding line-up, which includes three products that were
chosen as Health magazine's Best of Fitness 2005 award winners - the Life
Fitness T9i treadmill, R9i Lifecycle and ParaBody GS6 Gym System."

"Further, Life Fitness continues to expand its global manufacturing footprint,
particularly in Europe, to better serve its customers, and take advantage of
lower costs and other efficiencies," Buckley added. "We now manufacture both
strength and cardiovascular equipment in Hungary, reducing lead times and
freight costs to our European customers."

Bowling & Billiards Segment

The Bowling & Billiards segment is comprised of the Brunswick retail bowling
centers; bowling equipment and products; and billiards, Air Hockey(R) and
foosball tables. Segment sales in the fourth quarter of 2004 totaled $119.8
million, up 4 percent compared with $115.7 million in the year-ago quarter.
Operating earnings were up 32 percent to $20.0 million in the quarter versus
$15.2 million in the comparable quarter in 2003. Operating margins advanced 360
basis points to 16.7 percent in the fourth quarter of 2004 compared with 13.1
percent in 2003.

For 2004, the segment reported sales of $442.4 million, up 13 percent from
$392.4 million in 2003. Operating earnings for the year were up 63 percent to
$41.7 million from $25.6 million in 2003, and operating margins improved to 9.4
percent from 6.5 percent.

"Our bowling and billiards teams have done a great job of both launching new
products and wringing out costs," Buckley said. "Top-line growth was driven by
double-digit sales gains in bowling products, led by increases in scoring and
bowling center management systems. On the retail side, sales benefited from the
opening during the year of two new expanded Brunswick Zone centers. In
billiards, we continue to build our presence in the commercial and home markets
with successful introductions of new Brunswick billiards tables, as well as in
the coin-operated billiards table segment served by Valley-Dynamo. The
significant improvement in operating earnings is attributable to cost reduction
and supply chain programs along with the benefit of higher sales volumes. These
efforts offset higher research and development, sales and marketing expenses in
support of new products, as well as the impact of inflation on raw material
costs."

"In bowling, we saw double-digit sales growth in our products business to
complement the rock steady performance of our retail operations, where we
continue to expand our Brunswick Zone concept. In 2005, we will construct three
new expanded Brunswick Zone centers. We also are beginning to reap the benefits
of our active R&D investments in this segment, with such products as the Vector
scoring and center management system."

Looking Ahead

"We start 2005 well-positioned to take advantage of another year of increased
retail demand for marine products, which we estimate will be up in the
mid-single digits for the industry," Buckley noted. "Marine pipeline inventories
stand at 30 weeks of supply for boats and 26 weeks of supply for engines, up two
and four weeks, respectively, from the same time a year ago, reflecting our
marine dealers' expectations for solid growth in 2005. Further, we have a full
complement of new products on tap for introduction this year that we expect will
drive our marine sales up in the mid-teens. In the Fitness and Bowling &
Billiards segments, we are assuming mid-single digit sales growth. Fitness sales
growth is affected by the absence in 2005 of sales from Omni Fitness retail
stores, which were sold."

"Increased volumes along with our continued focus on effective cost management
are expected to result in operating margin improvement of 70 to 100 basis
points," Buckley noted. "This is despite an estimated $50 million of incremental
investments for new product development and launches, information technology
systems, and other growth and cost initiatives across all our segments. These
investments and the full benefit of four new manufacturing plants starting up in
the first quarter of 2005 should enable us to accelerate margin improvement in
2006. Further, for 2005 our budget assumes we will incur approximately $9
million in possible duties on outboard engines imported from Japan and an
estimated $4 million for the expensing of stock options in the second half of
the year."

"By leveraging an estimated 11 to 12 percent sales growth with improved
operating margins, we are budgeting earnings for 2005 at $3.25 per diluted
share," Buckley said. "Given that we are still early in the marine season, and
the challenges facing us with the transition to low-emission outboard engines,
the number of new products scheduled for introduction and the start up of new
manufacturing plants, we are estimating earnings per diluted share in the range
of $3.15 to $3.30 for 2005, and $0.55 to $0.60 per diluted share for the first
quarter of 2005. This compares with earnings per diluted share of $2.77 and
$0.50 for the full year and first quarter of 2004, respectively."

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 resolve contract disputes with suppliers; the impact
of possible duties on Japanese-manufactured outboard engines imported into the
United States; the ability to maintain effective distribution; the financial
strength of dealers, distributors and independent boat builders; 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
company's 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
2003 and Quarterly Report on Form 10- Q for the quarter ended Sept. 30, 2004.

About Brunswick

Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill
"Genuine Ingenuity"(TM) 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; Sea Ray, Bayliner, Maxum, Hatteras, Meridian,
Sealine, Bermuda, Ornvik, Quicksilver, Savage and Uttern pleasure boats; Baja
high-performance boats; Arvor, Boston Whaler, Palmetto, Sea Boss, Sea Pro and
Trophy offshore fishing boats; Crestliner, Lowe, Lund and Princecraft aluminum
fishing, deck and pontoon boats; Attwood marine parts and accessories; Land 'N'
Sea 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 http://www.brunswick.com .








    Brunswick Corporation
    Comparative Consolidated Statements of Income
    (in millions, except per share data)
    (unaudited)
                                                Quarter Ended December 31
                                                2004         2003    % Change
    Net sales                                $1,333.8     $1,086.9      23%
    Cost of sales                             1,001.7        817.5      23%
    Selling, general and administrative
     expense                                    210.9        177.7      19%
    Research and development expense             37.8         33.0      15%
    Operating earnings                           83.4         58.7      42%
    Interest expense                            (12.6)       (10.1)    -25%
    Other income                                 10.0          5.9      69%
    Earnings before income taxes                 80.8         54.5      48%
    Income tax provision                         22.0         14.6
    Net earnings                                $58.8        $39.9      47%

    Earnings per common share:
    Basic                                       $0.60        $0.43      40%
    Diluted                                     $0.59        $0.43      37%

    Average shares used for computation of:
    Basic earnings per share                     97.2         92.2       5%
    Diluted earnings per share                   98.8         93.5       6%

    Effective tax rate                          27.1%        26.7%



    Brunswick Corporation
    Comparative Consolidated Statements of Income
    (in millions, except per share data)
                                                   Year Ended December 31
                                                2004         2003    % Change

    Net sales                                $5,229.3     $4,128.7      27%
    Cost of sales                             3,915.1      3,131.6      25%
    Selling, general and administrative
     expense                                    782.4        632.5      24%
    Research and development expense            131.1        118.2      11%
    Litigation charge                              -          25.0
    Operating earnings  (1)                     400.7        221.4      81%
    Interest expense                            (45.2)       (41.0)    -10%
    Other income                                 23.0         20.7      11%
    Earnings before income taxes                378.5        201.1      88%
    Income tax provision                        108.7         65.9
    Net earnings                               $269.8       $135.2      NM

    Basic earnings per common share:            $2.82        $1.48      91%
    Diluted earnings per common share:          $2.77        $1.47      88%

    Average shares used for computation of:
    Basic earnings per share                     95.6         91.2       5%
    Diluted earnings per share                   97.3         91.9       6%

    Effective tax rate (2)                      28.7%       32.75%

    (1) Operating earnings include a $25.0 million litigation charge recorded
        in the first quarter of 2003 in connection with a patent infringement
        lawsuit relating to the design of a cross trainer.

    (2) The decrease in the effective tax rate for the year ended 2004 was
        primarily due to a reduction in tax reserves of approximately
        $10 million arising from the completion of audit examinations of years
        1998 to 2001.  The tax rate excluding the impact of the audit
        examinations was 31.4 percent in 2004 and 32.75 percent in 2003.



    Brunswick Corporation
    Selected Financial Information
    (in millions)

    Segment Information

                                 Quarter Ended December 31
                           Net Sales         Operating Earnings   Operating
                                                                    Margin
                                      %                       %
                    2004     2003   Change   2004    2003 Change  2004   2003
                 (unaudited)             (unaudited)
    Marine Engine  $584.6    $473.4   23%   $34.3   $26.7   28%   5.9%   5.6%
    Boat            561.9     414.9   35%    24.2     9.3   NM    4.3%   2.2%
    Marine
     eliminations  (104.2)    (73.6)          0.1       -
       Total
        Marine    1,042.3     814.7   28%    58.6    36.0   63%   5.6%   4.4%

    Fitness         173.2     157.2   10%    24.7    28.3  -13%  14.3%  18.0%
    Bowling &
     Billiards      119.8     115.7    4%    20.0    15.2   32%  16.7%  13.1%
    Eliminations     (1.5)     (0.7)            -
    Corporate/
     Other              -         -         (19.9)  (20.8)
       Total     $1,333.8  $1,086.9   23%   $83.4   $58.7   42%   6.3%   5.4%


                                 Year Ended December 31
                           Net Sales         Operating Earnings   Operating
                                                                    Margin
                                      %                       %
                    2004     2003   Change   2004    2003 Change  2004   2003

    Marine
     Engine      $2,353.2  $1,908.9   23%  $243.2  $171.1   42%  10.3%   9.0%
    Boat          2,271.1   1,616.9   40%   149.3    63.9   NM    6.6%   4.0%
    Marine
     eliminations  (391.4)   (275.1)          0.1       -
       Total
        Marine    4,232.9   3,250.7   30%   392.6   235.0   67%   9.3%   7.2%

    Fitness (1)     558.3     486.6   15%    45.2    29.8   52%   8.1%   6.1%
    Bowling &
     Billiards      442.4     392.4   13%    41.7    25.6   63%   9.4%   6.5%
    Eliminations     (4.3)     (1.0)            -       -
    Corporate/Other     -         -         (78.8)  (69.0)
      Total      $5,229.3  $4,128.7   27%  $400.7  $221.4   81%   7.7%   5.4%

     (1) Fitness segment operating earnings include a $25.0 million litigation
         charge recorded in the first quarter of 2003, in connection with a
         patent infringement lawsuit relating to the design of a cross
         trainer.
     NM = Not Meaningful



    Brunswick Corporation
    Comparative Consolidated Balance Sheets
    (in millions)

                                                            December 31
                                                      2004              2003
    Assets
    Current assets
      Cash and cash equivalents                     $499.8            $345.9
      Accounts and notes receivable, net             463.2             374.4
      Inventories
         Finished goods                              389.9             325.3
         Work-in-process                             260.5             205.7
         Raw materials                               136.4              92.8
           Net inventories                           786.8             623.8
      Prepaid income taxes                           292.7             302.3
      Prepaid expenses and other                      56.2              68.8
           Current assets                          2,098.7           1,715.2


    Net property                                     876.4             827.1

    Other assets
      Goodwill and other intangibles                 952.8             699.7
      Investments and other long-term assets         418.5             360.5

    Total assets                                  $4,346.4          $3,602.5


    Liabilities and shareholders' equity
    Current liabilities
      Short-term debt                                $10.7             $23.8
      Accounts payable                               387.9             321.3
      Accrued expenses and accrued income taxes      855.2             756.7
          Current liabilities                      1,253.8           1,101.8

    Long-term debt                                   728.4             583.8
    Deferred items                                   651.9             593.9
    Common shareholders' equity                    1,712.3           1,323.0

    Total liabilities and shareholders'
     equity                                       $4,346.4          $3,602.5


    Supplemental Information
    Debt-to-capitalization rate                      30.2%             31.5%



    Brunswick Corporation
    Comparative Consolidated Statements of Cash Flows
    (in millions)

                                                      Year Ended December 31
                                                      2004               2003

    Cash flows from operating activities
      Net earnings                                  $269.8             $135.2
      Depreciation and amortization                  157.5              150.6
      Changes in noncash current assets
       and current liabilities                       (68.7)             100.8
      Income taxes                                    50.1              (19.5)
      Other, net                                       6.5               28.0
         Net cash provided by operating activities   415.2              395.1

    Cash flows from investing activities
      Capital expenditures                          (171.3)            (159.8)
      Investments                                    (16.2)             (39.3)
      Acquisitions of businesses, net of
       debt and cash acquired                       (267.8)            (177.3)
      Proceeds on the sale of property,
       plant and equipment                            13.4                7.5
      Other, net                                       2.0               (3.0)
         Net cash used for investing activities     (439.9)            (371.9)

    Cash flows from financing activities
      Net issuances (repayments) of commercial
       paper and other short-term debt                (8.8)               1.8
      Net proceeds from issuances of long-term debt  152.3                  -
      Payments of long-term debt including current
       maturities                                     (6.3)             (24.5)
      Cash dividends paid                            (58.1)             (45.9)
      Stock options exercised                         99.5               39.9
         Net cash provided by (used for)
          financing activities                       178.6              (28.7)

    Net increase (decrease) in cash and
     cash equivalents                                153.9               (5.5)
    Cash and cash equivalents at January 1           345.9              351.4

    Cash and cash equivalents at December 31        $499.8             $345.9


    Free Cash Flow
      Net cash provided by operating activities     $415.2             $395.1

      Net cash provided by (used for):
           Capital expenditures                     (171.3)            (159.8)
           Other, net                                 15.4                4.5
      Total Free Cash Flow                          $259.3             $239.8

CONTACT:  Kathryn Chieger, Vice President - Corporate and Investor
Relations of Brunswick Corporation, [phone]/
Web site:  http://www.brunswick.com / BC




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