BRUNSWICK CORP - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark one)

(X) Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2005

() Transition Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 1-1043

BRUNSWICK CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		36-0848180
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1 N. Field Ct., Lake Forest, Illinois		60045-4811
(Address of principal executive offices)		(Zip Code)

(847) 735-4700

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12-b-2 of the Exchange Act).

Yes X No

At April 29, 2005, there were 97,056,116 shares of common stock ($0.75 par value) outstanding.

Part I. Financial Information

Item 1 - Financial Statements

Brunswick Corporation

Consolidated Statements of Income

for the three months ended March 31

(in millions, except per share data)

(unaudited)

	2005				2004

Net sales	$	1,401.1			$	1,199.6
Cost of sales	1,059.2				902.3
Selling, general and administrative expense	208.6				186.1
Research and development expense	34.2				32.7
Operating earnings	99.1				78.5
Interest expense	(13.0			)	(10.1		)
Investment sale gain	38.7				—
Other income	6.8				3.2
Earnings before income taxes	131.6				71.6
Income tax provision	37.0				23.6
Net earnings	$		94.6		$	48.0

Basic earnings per common share	$		0.97		$	0.51
Diluted earnings per common share	0.96				0.50

Average shares used for computation of:
Basic earnings per share	97.7				93.7
Diluted earnings per share	99.0				95.6

The notes are an integral part of these consolidated statements.

Brunswick Corporation

Consolidated Balance Sheets

as of March 31, 2005, December 31, 2004, and March 31, 2004

(in millions)

	March 31,				December 31,			March 31,
	2005				2004			2004
	(unaudited)							(unaudited)
Assets
Current assets
Cash and cash equivalents, at cost,
which approximates market	$		439.7		$	499.8		$		173.8
Accounts and notes receivable,
less allowances of $29.6, $29.0 and $32.3	505.1				463.2			455.3
Inventories
Finished goods	436.6				389.9			394.7
Work-in-process	283.6				260.5			222.6
Raw materials	146.8				136.4			105.5
Net inventories	867.0				786.8			722.8
Deferred income taxes	292.0				292.7			297.5
Prepaid expenses and other	43.7				56.2			51.4
Current assets	2,147.5				2,098.7			1,700.8

Property
Land	68.7				68.8			70.9
Buildings and improvements	550.5				548.5			527.4
Equipment	1,075.2				1,071.8			1,057.0
Total land, buildings and improvements and equipment	1,694.4				1,689.1			1,655.3
Accumulated depreciation	(954.5			)	(942.8		)	(933.1			)
Net land, buildings and improvements and equipment	739.9				746.3			722.2
Unamortized product tooling costs	131.5				130.1			125.6
Net property	871.4				876.4			847.8

Other assets
Goodwill	623.8				624.8			573.8
Other intangibles	328.6				328.0			283.5
Investments	139.0				182.9			164.5
Other long-term assets	232.1				235.6			219.8
Other assets	1,323.5				1,371.3			1,241.6

Total assets	$	4,342.4			$	4,346.4		$	3,790.2

The notes are an integral part of these consolidated statements.

Brunswick Corporation

Consolidated Balance Sheets

as of March 31, 2005, December 31, 2004, and March 31, 2004

(in millions, except share data)

March 31,

December 31,

March 31,

2005