Brunswick Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for the Year 2013; Announces Impairment Charges on Assets for the Fourth Quarter of 2012
January 24, 2013 at 07:39 am EST
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Brunswick Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net sales of $829.8 million compared to $761.5 million a year ago. Operating earnings were $7 million compared to operating loss of $13.4 million a year ago. Loss before income taxes were $12.5 million compared to $38.2 million a year ago. Loss from continuing operations were $16.1 million or $0.18 per diluted share compared to $25.4 million or $0.28 per diluted share a year ago. Net loss was $75.3 million or $0.84 per diluted share compared to $29.6 million or $0.33 per diluted share a year ago.
For the year, the company reported net sales of $3,717.6 million compared to $3,670.0 million a year ago. Operating earnings were $264.1 million compared to $213.7 million a year ago. Earnings before income taxes were $181 million compared to $110.7 million a year ago. Net earnings from continuing operations were $147.4 million or $1.59 per diluted share compared to $90.6 million or $0.98 per diluted share a year ago. Net earnings was $50.0 million or $0.54 per diluted share compared to $71.9 million or $0.78 per diluted share a year ago. Net cash provided by operating activities were $160.7 million compared to $89.1 million a year ago. Capital expenditures were $115.2 million compared to $87.1 million a year ago.
The company provided earnings guidance for the year 2013. The company is expecting 2013 diluted earnings per common share, excluding restructuring, exit and impairment charges, debt extinguishment losses and special tax items, to be in the range of $2.20 to $2.45. The company is targeting a 3% to 5% revenue growth rate in 2013, driven by the strength of global brands and contributions from the growth initiatives. The company expects net interest expense to be reduced by $13 million to $17 million, excluding extinguishment losses of $25 million to $30 million. The company's estimate for depreciation and amortization is approximately $95 million. The company expects capital expenditures to increase versus prior years as it fund growth initiatives. The company expects to maintain gross margins of approximately 25%. The company plans for an effective tax rate in the range of 16% to 18% on an as adjusted earnings basis.
For the fourth quarter of 2012, the company reported impairment charge on assets held for sale, net of tax of $53.2 million.
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 Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for the Year 2013; Announces Impairment Charges on Assets for the Fourth Quarter of 2012