SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of report (Date of earliest event reported) October 7, 1999
Brunswick Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-1043 36-0848180
(Commission File Number) (IRS Employer Identification No.)
1 North Field Court, Lake Forest, Illinois 60045-4811
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 735-4700
(Former name or former address, if changed since last report.)
Item 5. Other Events
Brunswick Corporation announced that it has reached agreements
to settle three pending lawsuits. As a result, the company will
record a charge to operating earnings estimated at approximately
$31.0 million after tax, or $0.33 per diluted share, in the third
quarter of 1999. All three complaints followed the allegations
contained in an antitrust suit brought in Little Rock, Arkansas,
where, as previously disclosed, a jury awarded a group of 22 boat
builders treble damages totaling $133 million in June 1998.
The settlements cover a suit filed by Volvo Penta of the
Americas, Inc., Brunswick's principal competitor in the sale of
sterndrive engines; a class action suit filed by a former Brunswick
boat dealer purporting to represent all marine dealers who
purchased from Brunswick MerCruiser sterndrive and inboard engines
and boats equipped with such engines; and a class action suit filed
by an individual purporting to represent all retail purchasers of
boats equipped with MerCruiser sterndrive and inboard engines in 16
states and the District of Columbia. In addition, as part of the
settlement with Volvo Penta, the company has entered into a long-
term supply agreement to purchase diesel sterndrive and inboard
engines from Volvo for use in certain models of boats manufactured
by Brunswick. The two class action settlements are subject to
approval by the courts.
The appeal of the Little Rock verdict is currently pending,
and the company anticipates a decision in the next three to six
months. While there can be no assurance, the company believes it
is likely to prevail on appeal and obtain either a new trial or
judgment in its favor. A class action suit seeking to represent
all boat builders not represented in the Little Rock case has been
stayed on the merits of the claims pending the outcome of the
appeal.
Forward Looking Statements
Certain statements in this Form 8-K 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, Year 2000 issues including the effectiveness of the Company's
remediation and replacement initiatives, the readiness of third
parties including customers and suppliers and the Company's ability
to complete the information systems initiatives within the time and
cost estimated; inventory adjustments by major retailers;
competitive pricing pressures; the outcome of pending or potential
litigation; and adverse weather conditions retarding sales of
outdoor recreation products.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
BRUNSWICK CORPORATION
DATE: October 14, 1999 By: /s/ Dustan McCoy
Name: Dustan McCoy
Title: Vice President and
General Counsel
