Brunswick Corp. reported first-quarter revenues grew 10 percent, or 14 percent on a currency-neutral basis. Marine Engine segment sales were up boat segment were 11 percent, Boat segment sales grew 11 percent, and Fitness segment revenues were up 3 percent.

Highlights of the period included:
• Consolidated net sales increased 10 percent versus first quarter 2014;
14 percent growth on a constant currency basis.
• Net sales of combined marine segments increased 12 percent;
16 percent growth on a constant currency basis.
• Operating earnings increased by 8 percent.
• Pretax earnings increased by 13 percent.
• Diluted EPS of $0.59, a $0.07 increase compared to prior year.

“Our reported first quarter revenues increased by 10 percent, or 14 percent on a
constant currency basis,” said Brunswick Chairman and Chief Executive Officer Dustan
E. McCoy. “Our top line reflected strong growth rates in our marine parts and
accessories business and fiberglass sterndrive/inboard boats. This growth was
supported by another solid performance by outboard boats and engines, as well as
fitness equipment.

“At the core of our growth strategy, as well as our investment thesis, is our ability to
increase investments in capital projects and research and development programs to
enable each of our businesses to achieve product and innovation leadership. The
successful execution of this plan over the past several quarters is leading to market
share gains in many of our key product categories and enabling our view of continued
solid earnings growth in 2015, notwithstanding the strong dollar and weak economic
conditions in certain international markets.

“Operating earnings increased by 8 percent compared to the prior year. The operating
margin decline of 20 basis points was anticipated and incorporated into our previously
stated guidance. Our full-year plan reflects more favorable earnings growth rates and
margin expansion in the second half of 2015.

“The improvement in operating earnings combined with lower net interest expense and
higher other income, led to a 13 percent increase in pretax earnings and diluted
earnings per common share,” McCoy said.

Discontinued Operations

On July 17, 2014, the company announced: 1) the signing of an agreement to sell its
Retail Bowling business, and 2) its intention to sell its Bowling Products business. On
Sept. 18, 2014, the sale of the Retail Bowling business was completed. As a result, the
historical and future results of these businesses are reported as discontinued operations
and the historical and future results of the Billiards business, which remains part of the
company, are reflected in the Fitness segment. Therefore, for all periods presented in
this release, all figures and outlook statements incorporate these changes and reflect
continuing operations only, unless otherwise noted.

First Quarter Results

For the first quarter of 2015, the company reported net sales of $985.7 million, up from
$894.9 million a year earlier. For the quarter, the company reported operating earnings
of $88.7 million, compared to $81.9 million in the prior year.

Brunswick reported net earnings of $56.6 million, or $0.59 per diluted share, compared
with net earnings of $49.1 million, or $0.52 per diluted share, for the first quarter of
2014.

Review of Cash Flow and Balance Sheet

Cash and marketable securities totaled $426.0 million at the end of the first quarter,
down $209.9 million from year-end 2014 levels. This decrease primarily reflects net
cash used for operating activities of $125.9 million. Net cash used for operating
activities was affected by improved seasonal changes in working capital and planned
pension contributions during the quarter.

In addition, cash used for investing and financing activities of $42.5 million affected cash
and marketable securities balances. Investing and financing activities during the
quarter included $33.8 million for capital expenditures, $20.0 million of common stock
repurchases and $11.6 million of dividends.

Marine Engine Segment

The Marine Engine segment, consisting of the Mercury Marine Group, including the
marine parts and accessories businesses, reported net sales of $562.2 million in the
first quarter of 2015, up 11 percent from $505.1 million in the first quarter of 2014.
International sales, which represented 32 percent of total segment sales in the quarter,
were down one percent compared to the prior year period. On a constant currency
basis, international sales were up 11 percent. For the quarter, the Marine Engine
segment reported operating earnings of $74.2 million. This compares with operating
earnings of $61.7 million in the first quarter of 2014.

Sales increases in the quarter were led by the segment’s parts and accessories, which
included revenues from acquisitions completed in the second and third quarters of
2014, and outboard engine businesses. Higher revenues and a more favorable product
mix, contributed to the increase in operating earnings in the first quarter of 2015.
Partially offsetting these positive factors were the unfavorable effects of foreign
exchange and increased investments for long-term growth initiatives.

Boat Segment

The Boat segment is comprised of the Brunswick Boat Group, and includes 14 boat
brands. The Boat segment reported net sales of $318.0 million for the first quarter of
2015, an increase of 12 percent compared with $282.8 million in the first quarter of
2014. International sales, which represented 31 percent of total segment sales in the
quarter, decreased by 3 percent during the period. On a constant currency basis,
international sales were up 5 percent. For the first quarter of 2015, the Boat segment
reported operating earnings of $7.7 million. This compares with operating earnings of
$8.4 million in the first quarter of 2014.

The Boat segment's revenue growth reflected higher average selling prices, compared
with the first quarter of 2014, combined with an increase in wholesale unit shipments
during the quarter. Operating earnings benefited from higher sales, but was more than
offset by the planned costs associated with new product introductions, plant expansions
and production ramp-up, along with an unfavorable impact from foreign exchange.

Fitness Segment

The Fitness segment is comprised of the Life Fitness Division, which designs,
manufactures, and sells Life Fitness and Hammer Strength fitness equipment. Fitness
segment sales in the first quarter of 2015 totaled $185.6 million, up 3 percent from
$180.1 million in the first quarter of 2014. International sales, which represented
47 percent of total segment sales in the quarter, increased by one percent. On a
constant currency basis, international sales were up 8 percent. For the quarter, the
Fitness segment reported operating earnings of $25.8 million. This compares with
operating earnings of $29.7 million in the first quarter of 2014.

The increase in revenue reflected growth in the U.S. at health clubs and hospitality
customers, as well as sales gains in international markets. Partially offsetting this growth
was lower sales to local and federal government customers. The decline in operating
earnings included benefits from higher sales, which were more than offset by the
absence of a favorable warranty expense adjustment in first quarter of 2014 and an
unfavorable impact from foreign exchange.

“Our overall operating plans and assumptions for 2015 remain consistent with our initial
guidance communicated in January, in spite of greater-than-expected foreign currency
headwinds,” McCoy said. “The first quarter also produced results in line with our initial
2015 guidance. This speaks to the strong performance of our recently introduced
products in all of our business segments.

“We continue to target 2015 to be another year of strong earnings growth with
outstanding cash flow generation. Our plan reflects 6 percent to 8 percent sales growth,
which includes benefits from the success of our new products and the continuation of
solid growth in the U.S., partially offset by the negative impact of a stronger U.S. dollar
and weakness in certain international markets. Our guidance assumes that no
additional acquisitions will be made in 2015.

“Our earnings growth will be more heavily weighted to the second-half of the year. For
the full-year, we continue to anticipate a slight improvement in gross margin levels and
solid gains in operating margins. While we plan to continue to benefit from volume
leverage and modest positive product mix factors, our sales and earnings growth will be
negatively affected by foreign exchange headwinds, both from a translation as well as
competitive risk basis.

As previously disclosed, operating earnings will be affected by several other factors,
particularly in the first-half, including: the absence of 2014 favorable warranty related
adjustments; costs associated with production expansions and new product integration
and ramp-ups; and continued increases in investments to support our strategic
objectives. Full-year operating expenses will increase; but as a percentage of sales, are
expected to be at lower levels than 2014.

“Our guidance for 2015 continues to reflect adjusted pretax earnings growth of
15 percent to 20 percent and we are narrowing the range for our expectations of diluted
EPS, as adjusted, to a range of $2.75 to $2.85. Finally, for the full-year, we expect to
generate positive free cash flow in the range of $170 million to $190 million,” McCoy
concluded.

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; Attwood and Whale marine parts and accessories; Land 'N' Sea, BLA,
Kellogg Marine, Diversified Marine and Bell RPG parts and accessories distributors;
Bayliner, Boston Whaler, Brunswick Commercial and Government Products, Crestliner,
Cypress
Cay, Harris, Lowe, Lund, Meridian, Princecraft, Quicksilver, Rayglass,
Sea Ray and Uttern boats, and Life Fitness and Hammer Strength fitness
equipment, and
Brunswick billiards tables and table tennis.