<PAGE>

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities 
Exchange Act of 1934 For the quarterly period ended   MARCH 31, 1999
                                                      --------------
                                       or

[ ]  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:                1-988
                                       -----

                          THE COLEMAN COMPANY, INC.
           ------------------------------------------------------
           (Exact name of registrant as specified in its charter)

           DELAWARE                                            13-3639257 
-------------------------------                            -------------------
(State or other jurisdiction of                             (I.R.S. Employer 
 incorporation or organization)                            Identification No.)

2111 E. 37TH STREET NORTH, WICHITA, KANSAS                          67219     
------------------------------------------                        ----------
 (Address of principal executive offices)                         (Zip Code)

                                  316-832-2700
                ------------------------------------------------
              (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 requirement for the past 90 days.   X  Yes       No
                                              -----     -----

The number of shares outstanding of the registrant's par value $.01 common 
stock was 55,827,490 shares as of May 12, 1999 of which 44,067,520 shares 
were held by Coleman Worldwide Corporation, an indirect wholly-owned 
subsidiary of Sunbeam Corporation.

                            Exhibit Index on Page 23
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

                                      INDEX

<TABLE>
<S>                                                                                                  <C>
                            PART I.  FINANCIAL INFORMATION                                           Page
                                                                                                     ----
Item 1.  Condensed Consolidated Financial Statements:

            Condensed Consolidated Statements of Operations
               Three months ended March 31, 1999 and 1998.......................................       3

            Condensed Consolidated Balance Sheets
               March 31, 1999 and December 31, 1998.............................................       4

            Condensed Consolidated Statements of Cash Flows
               Three months ended March 31, 1999 and 1998.......................................       5

            Notes to Condensed Consolidated Financial Statements................................       6

Item 2.  Management's Discussion and Analysis of Financial Condition
            and Results of Operations...........................................................      13


                    PART II. OTHER INFORMATION

Item 1.  Legal Proceedings......................................................................      23

Item 6.  Exhibits and Reports on Form 8-K.......................................................      23

         Signatures  ...........................................................................      24
</TABLE>

                                       2
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

               ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                             Three Months
                                                                                            Ended March 31,
                                                                                     -----------------------------
                                                                                         1999             1998     
                                                                                     ------------     ------------
<S>                                                                                  <C>              <C>
Net revenues................................................................         $    280,690     $    244,499
Cost of sales...............................................................              198,371          175,777
                                                                                     ------------     ------------
Gross profit................................................................               82,319           68,722
Selling, general and administrative expenses................................               61,360           74,855
Interest expense, net.......................................................                7,575            9,044
Amortization of goodwill and deferred charges...............................                2,564            2,934
Gain on sale of business....................................................                 --            (26,137)
Other (income) expense, net.................................................                 (531)           1,861
                                                                                     ------------     ------------
Earnings before income taxes,
     minority interest and extraordinary item...............................               11,351            6,165
Income tax expense..........................................................                4,540            7,518
Minority interest...........................................................                   70               61
                                                                                     ------------     ------------
Earnings (loss) before extraordinary item...................................                6,741           (1,414)
Extraordinary loss on early extinguishment
  of debt, net of income tax benefit........................................                 --             (1,232) 
                                                                                     ------------     ------------
Net earnings (loss).........................................................         $      6,741     $     (2,646)
                                                                                     ------------     ------------
                                                                                     ------------     ------------
Basic and diluted earnings (loss) per share:
  Earnings (loss) before extraordinary item.................................         $       0.12     $      (0.03)
  Extraordinary item........................................................                 --              (0.02)
                                                                                     ------------     ------------
    Net earnings (loss).....................................................         $       0.12     $      (0.05)
                                                                                     ------------     ------------
                                                                                     ------------     ------------
Weighted average common shares outstanding:
  Basic and diluted ........................................................               55,827           53,732
                                                                                     ------------     ------------
                                                                                     ------------     ------------
</TABLE>

            See Notes to Condensed Consolidated Financial Statements

                                       3
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                       March 31,      December 31,
                                                                                         1999             1998    
                                                                                     -------------    ------------
<S>                                                                                  <C>              <C>
             ASSETS
Current assets:
   Cash and cash equivalents............................................             $      18,508    $     23,413
   Accounts and notes receivable, less allowance
     of $8,695 in 1999 and $8,894 in 1998...............................                   222,453         162,108
   Inventories..........................................................                   253,409         230,126
   Deferred tax assets..................................................                    28,403          26,926
   Prepaid expenses and other current assets............................                    17,524          19,627
                                                                                     -------------    ------------
     Total current assets...............................................                   540,297         462,200
Property, plant and equipment, less accumulated depreciation
   of $125,613 in 1999 and $122,868 in 1998.............................                   141,028         145,823
Goodwill, net...........................................................                   274,262         282,015
Deferred tax assets and other assets....................................                    36,645          43,219
                                                                                     -------------    ------------
                                                                                     $     992,232    $    933,257
                                                                                     -------------    ------------
                                                                                     -------------    ------------
       LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities:
   Accounts and notes payable...........................................             $     160,619    $    146,064
   Other current liabilities............................................                   106,370         101,224
                                                                                     -------------    ------------
     Total current liabilities..........................................                   266,989         247,288
Debt payable to affiliate...............................................                   407,771         365,063
Long-term debt..........................................................                       435             362
Other liabilities.......................................................                    74,315          75,231
Minority interest.......................................................                     8,000           6,698
Contingencies...........................................................
Stockholders' equity:
   Common stock.........................................................                       558             558
   Additional paid-in capital...........................................                   223,245         221,730
   Retained earnings....................................................                    28,718          21,977
   Accumulated other comprehensive loss.................................                   (17,799)         (5,650)
                                                                                     -------------    ------------
     Total stockholders' equity.........................................                   234,722         238,615
                                                                                     -------------    ------------
                                                                                     $     992,232    $    933,257
                                                                                     -------------    ------------
                                                                                     -------------    ------------
</TABLE>
                                       
            See Notes to Condensed Consolidated Financial Statements
    
                                       4
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                             Three Months
                                                                                            Ended March 31,       
                                                                                     -----------------------------
                                                                                         1999             1998    
                                                                                     -------------    ------------
<S>                                                                                  <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss).............................................................     $       6,741    $     (2,646)
Adjustments to reconcile net earnings (loss) to net cash flows
   from operating activities:
     Depreciation and amortization..............................................             8,138           9,508
     Minority interest..........................................................                70              61
     Gain on sale of business...................................................              --           (26,137)
     Extraordinary loss on early extinguishment of debt.........................              --             2,038
     Change in assets and liabilities, net of effects from sale of business:
           Increase in receivables..............................................           (65,104)        (34,531)
           Increase in inventories..............................................           (28,832)        (31,043)
           Increase in accounts payable.........................................            15,466           4,177
           Other, net...........................................................            14,541          (5,036)
                                                                                     -------------    ------------
Net cash used by operating activities...........................................           (48,980)        (83,609)
                                                                                     -------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures............................................................            (3,919)         (9,698)
Net proceeds from sale of business and fixed assets.............................               568          98,264
                                                                                     -------------    ------------
Net cash (used) provided by investing activities................................            (3,351)         88,566
                                                                                     -------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments of revolving credit agreement borrowings...........................              --           (52,578)
Net change in short-term borrowings.............................................             5,468          (3,352)
Repayment of long-term debt, including redemption costs.........................               (53)        (63,416)
Net increase in borrowings from affiliate.......................................            42,708          90,711
Proceeds from stock options exercised including tax benefits....................              --            31,805
                                                                                     -------------    ------------
Net cash provided by financing activities.......................................            48,123           3,170
                                                                                     -------------    ------------
Effect of exchange rate changes on cash.........................................              (697)            340
                                                                                     -------------    ------------
Net (decrease) increase in cash and cash equivalents............................            (4,905)          8,467
Cash and cash equivalents at beginning of the period............................            23,413          13,031
                                                                                     -------------    ------------
Cash and cash equivalents at end of the period..................................     $      18,508    $     21,498
                                                                                     -------------    ------------
                                                                                     -------------    ------------
</TABLE>


            See Notes to Condensed Consolidated Financial Statements

                                       5
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)
                                   (Unaudited)

1.   BACKGROUND

     The Coleman Company, Inc. ("Coleman" or the "Company") is a global 
manufacturer and marketer of consumer products for outdoor recreation and 
home hardware use.

     Coleman is a subsidiary of Coleman Worldwide Corporation ("Coleman 
Worldwide"). Coleman Worldwide is an indirect wholly-owned subsidiary of 
Laser Acquisition Corp. ("Laser"), an indirect wholly-owned subsidiary of 
Sunbeam Corporation ("Sunbeam"). Coleman Worldwide owns 44,067,520 shares of 
the common stock of Coleman which represented approximately 79% of the 
outstanding Coleman common stock as of March 31, 1999.

     Coleman, Sunbeam and Camper Acquisition Corp. ("CAC"), a wholly-owned 
subsidiary of Sunbeam, have entered into an Agreement and Plan of Merger (the 
"Coleman Merger Agreement"), providing that among other things, CAC will be 
merged with and into Coleman, with Coleman continuing as the surviving 
corporation (the "Coleman Merger"). Pursuant to the Coleman Merger Agreement, 
each share of the Company's common stock issued and outstanding immediately 
prior to the effective time of the Coleman Merger (other than shares held 
indirectly by Sunbeam and shares, if any, for which appraisal rights have 
been exercised) will be converted into the right to receive (a) 0.5677 of a 
share of Sunbeam common stock, with cash paid in lieu of fractional shares, 
and (b) $6.44 in cash, without interest. In addition, unexercised stock 
options at the time of the Coleman Merger will be cashed out by Sunbeam at a 
price per share equal to the difference between $27.50 per share and the 
exercise price of such options. In October 1998, Coleman and Sunbeam entered 
into a memorandum of understanding to settle, subject to court approval, 
certain class actions brought by minority shareholders of Coleman against 
Coleman, Sunbeam and certain of their current and former officers and 
directors challenging the proposed Coleman Merger. Under the terms of the 
proposed settlement, if approved by the court, Sunbeam will issue to the 
Coleman public shareholders five-year warrants to purchase up to 4.98 million 
shares of Sunbeam common stock at $7.00 per share, subject to certain 
anti-dilution provisions. Any shareholder who does not exercise his appraisal 
rights under Delaware law will receive the warrants. These warrants will be 
issued when the Coleman Merger is consummated, which is now expected to be 
during the second half of 1999. There can be no assurance that the court will 
approve the settlement as proposed, although such approval is not a condition 
to the consummation of the Coleman Merger.

     The consummation of the Coleman Merger is contingent upon several 
conditions including, among other things, the filing of a registration 
statement under the Securities Act of 1933 (the "Securities Act") for the 
purpose of registering the shares of Sunbeam common stock to be issued in the 
Coleman Merger (the "Registration Statement") and that the Registration 
Statement shall have become effective in accordance with the provisions of 
the Securities Act. Sunbeam has filed a preliminary Registration Statement, 
but is uncertain when the Registration Statement will become effective. 
However, it is anticipated the Coleman Merger will be completed during the 
second half of 1999. Upon consummation of the Coleman Merger, Coleman will 
become an indirect wholly-owned subsidiary of Sunbeam.

                                       6
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)
                                   (Unaudited)

2.   BASIS OF FINANCIAL STATEMENT PRESENTATION

     The accompanying unaudited condensed consolidated financial statements 
include the accounts of Coleman and its subsidiaries after elimination of all 
material intercompany accounts and transactions, and have been prepared in 
accordance with generally accepted accounting principles for interim 
financial information and with the instructions to Form 10-Q and Article 10 
of Regulation S-X. Accordingly, they do not include all of the information 
and footnotes required by generally accepted accounting principles for 
complete financial statements. In the opinion of management, these statements 
include all adjustments necessary for a fair presentation of results of 
operations, financial position and cash flows. The balance sheet at December 
31, 1998 has been derived from the audited financial statements for that date 
but does not include all of the information and footnotes required by 
generally accepted accounting principles for complete financial statements. 
For further information, refer to the consolidated financial statements and 
footnotes thereto included in the Company's Annual Report on Form 10-K for 
the year ended December 31, 1998. Operating results for the three months 
ended March 31, 1999 are not necessarily indicative of the results that may 
be expected for future periods including the year ended December 31, 1999.

3.   INVENTORIES

     The components of inventories consist of the following:

<TABLE>
<CAPTION>
                                                                         March 31,         December 31,
                                                                           1999                1998     
                                                                     ---------------     ---------------
<S>                                                                  <C>                 <C>
              Raw material and supplies.........................     $        48,818     $        45,395
              Work-in-process...................................               8,370               6,539
              Finished goods....................................             196,221             178,192
                                                                     ---------------     ---------------
                                                                     $       253,409     $       230,126
                                                                     ---------------     ---------------
                                                                     ---------------     ---------------
</TABLE>

4.   DEBT PAYABLE TO AFFILIATE

     Since Sunbeam's credit facility (the "Sunbeam Credit Facility") provides 
that Sunbeam will not contribute capital to Coleman or, with some exceptions, 
permit Coleman to borrow money from any source other than Sunbeam, the 
Company's ability to meet its cash operating requirements, including capital 
expenditures and other obligations, is dependent upon a combination of cash 
flows from operations and loans to the Company from Sunbeam. Sunbeam has 
informed the Company that it has the positive intent and ability to fund the 
Company's requirements for borrowed funds through April 10, 2000. Amounts 
loaned by Sunbeam are represented by a promissory note (the "Intercompany 
Note") which totaled $407,771 at March 31, 1999 and until the amendment and 
restatement of the Intercompany Note described below, were due on demand. For 
1998 and through April 15, 1999, the Intercompany Note bore interest at a 
floating rate equivalent to the weighted 

                                       7
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)
                                   (Unaudited)

average interest rate incurred by Sunbeam on its outstanding convertible debt 
and borrowings under its bank credit facility. The weighted average interest 
rate charged by Sunbeam on the Intercompany Note during the three months 
ended March 31, 1999 was 7.3% and the total interest charged by Sunbeam to 
Coleman was $7,173. Sunbeam also charged to Coleman a pro-rata share of 
amortized debt issuance costs and unused bank credit facility commitment fees 
totaling $277. Net amounts advanced from Sunbeam along with the related 
unpaid interest and other costs are reflected as debt payable to affiliate in 
the Company's condensed consolidated balance sheet. Coleman is also a 
borrower under the Sunbeam Credit Facility for purposes of letters of credit 
borrowings.

     On April 15, 1999, Coleman, Sunbeam and, as to certain agreements, the 
lenders under the Sunbeam Credit Facility entered into an amended and 
restated Intercompany Note (the "Amended Intercompany Note"), intercompany 
security and pledge agreements, an amendment to the Sunbeam Credit Facility 
and certain other agreements (collectively, the "Agreements"). The Amended 
Intercompany Note is due April 15, 2000. The Amended Intercompany Note bears 
interest at an annual rate equal to (i) 4% if the three month London 
Interbank Offering Rate ("LIBOR") quoted on the Telerate system is less than 
6%, or (ii) 5% if the three month LIBOR quoted on the Telerate system is 6% 
or higher, subject to increases during an event of default, and interest will 
be payable by adding the amount of such interest to the principal balance of 
the Amended Intercompany Note. In addition, the Amended Intercompany Note 
provides an event of default under the Sunbeam Credit Facility will 
constitute an event of default under the Amended Intercompany Note and in 
certain circumstances the payment on the Amended Intercompany Note will be 
subordinate to Coleman's obligations under the Sunbeam Credit Facility. 
Pursuant to the Agreements, Coleman has pledged substantially all of its 
domestic assets, other than its real property, including 66% of its ownership 
interest in its direct foreign subsidiaries and domestic holding companies 
for its foreign subsidiaries and all of its ownership interest in its other 
domestic subsidiaries (but Coleman's subsidiaries have not pledged their 
assets or stock of their subsidiaries), as security for the Amended 
Intercompany Note. Sunbeam has pledged the Amended Intercompany Note as 
security for the Sunbeam Credit Facility and assigned to such lenders the 
security pledged by Coleman for the Amended Intercompany Note. Under the 
Agreements, Coleman also agreed to give the lenders a direct pledge of the 
assets securing the Amended Intercompany Note to secure the obligations under 
the Sunbeam Credit Facility, subject to a cap equal to the balance due from 
time to time on the Amended Intercompany Note.

     The Sunbeam Credit Facility provides for a revolving credit facility in 
an aggregate principal amount of up to $400,000 (subject to certain 
reductions) maturing March 31, 2005. In addition, pursuant to the Sunbeam 
Credit Facility, at March 31, 1999, Sunbeam had approximately $1,260,000 
outstanding debt consisting of two tranches of term loans with scheduled 
repayments through maturity on March 31, 2005 and September 30, 2006. As a 
result of Sunbeam's operating losses, Sunbeam was not in compliance with the 
financial covenants and other terms contained in the Sunbeam Credit Facility. 
As of June 30, 1998, Sunbeam entered into an agreement with its bank lenders 
which waived Sunbeam's compliance through December 31, 1998. On October 19, 
1998, Sunbeam's bank lenders agreed to extend this waiver through April 10, 
1999. In April 1999, the 

                                       8
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)
                                   (Unaudited)

waiver was extended to April 10, 2000, and the Sunbeam Credit Facility was 
amended to add certain financial covenants and other terms. Interest accrues 
at a rate selected at Sunbeam's option of: (i) LIBOR plus an interest rate 
margin which varies depending upon the occurrence of specified events or, 
(ii) the base rate of the administrative agent (generally the higher of the 
prime commercial lending rate of the administrative agent or the Federal 
Funds Rate plus one-half of 1%), plus an interest rate margin which varies 
depending upon the occurrence of specified events.

     Borrowings under the Sunbeam Credit Facility are secured by a pledge of 
the stock of Sunbeam's material subsidiaries and by a security interest in 
substantially all of the assets of Sunbeam and its material domestic 
subsidiaries (other than Coleman and its subsidiaries, except as otherwise 
described herein), including the Amended Intercompany Note. Sunbeam has 
pledged its shares of Coleman common stock and its shares of Sunbeam 
Corporation (Canada) Limited ("Sunbeam Canada") common stock owned by it as 
security under the Sunbeam Credit Facility. In addition, borrowings under the 
Sunbeam Credit Facility are guaranteed by a number of Sunbeam's wholly-owned 
material United States subsidiaries (but not Coleman) and such subsidiary 
guarantees are secured as described above. Coleman has pledged its inventory 
(but not that of its subsidiaries) and the proceeds from the sale of such 
inventory as collateral for its letter of credit borrowings under the Sunbeam 
Credit Facility.

     The Sunbeam Credit Facility contains covenants customary for credit 
facilities of a similar nature, including limitations on the ability of 
Sunbeam and its subsidiaries, including Coleman, to, among other things, (i) 
declare dividends or repurchase stock, (ii) prepay, redeem or repurchase 
debt, incur liens and engage in sale-leaseback transactions, (iii) make loans 
and investments, (iv) incur additional debt and maintain revolving loan 
balances, (v) amend or otherwise alter material agreements or enter into 
restrictive agreements, (vi) make capital and Year 2000 testing and 
remediation expenditures, (vii) engage in mergers, acquisitions and asset 
sales, (viii) engage in transactions with affiliates, (ix) alter its fiscal 
year or accounting policies, (x) enter into hedging agreements, (xi) settle 
litigations, (xii) alter its cash management system and (xiii) alter the 
businesses they conduct. Sunbeam is also required to comply with specified 
financial covenants and ratios. The Sunbeam Credit Facility provides for 
events of default customary for transactions of this type, including 
nonpayment, misrepresentation, breach of covenant, cross-defaults, bankruptcy 
and insolvency, ERISA, judgments and change of ownership and control. The 
Sunbeam Credit Facility, as amended, also provides it is an event default if 
the registration statement for the shares of Sunbeam common stock to be 
issued in the Coleman Merger is not declared effective by October 30, 1999, 
if Sunbeam fails to complete the Coleman Merger within 25 business days after 
the related registration statement is declared effective by the SEC, or if 
Sunbeam has to pay more than $87,500 (excluding expenses) in cash to complete 
the merger (including any payments made with respect to appraisal rights).

                                       9
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)
                                   (Unaudited)

5.   RESTRUCTURING AND OTHER CHARGES

     The Company continuously reviews the adequacy of its restructuring 
reserves and adjusts the reserves as the various activities are completed or 
additional information becomes available which allows the Company to refine 
its estimates. During the three months ended March 31, 1999, the Company 
reduced its reserves by $558 as a result of these reviews. During the three 
months ended March 31, 1998, the Company increased its reserves by $715 as a 
result of these reviews. In addition, during the three months ended March 31, 
1998, the Company recorded other charges totaling $12,931 resulting from 
expenses associated with the acquisition of the Company by Sunbeam including 
advisory fees, abandoning a company-wide enterprise resource computer 
software system, and terminating a licensing services agreement.

     The following table provides an analysis of the changes in the Company's 
restructuring reserves since December 31, 1998. For detailed information 
regarding the Company's restructuring charges see Note 3 to the consolidated 
financial statements included in the Company's Annual Report on Form 10-K for 
the year ended December 31, 1998.

<TABLE>
<CAPTION>
                                                             Inventory                         Idle
                                             Impairment      and Other                      Facilities
                                              of Fixed         Asset       Termination      and Other
                                               Assets       Impairments       Costs         Exit Costs      Total
                                            -----------     -----------    -----------      -----------  ----------
<S>                                         <C>             <C>            <C>              <C>          <C>
Balance at December 31, 1998............... $     8,066     $     1,809    $     8,656      $     3,339  $   21,870
1999 (Credits) Charges.....................        (325)           (602)          --                369        (558)
Activity...................................        (663)           (436)        (2,502)            (676)     (4,277)
                                            -----------     -----------    -----------      -----------  ----------
Balance at March 31, 1999.................. $     7,078     $       771    $     6,154      $     3,032  $   17,035
                                            -----------     -----------    -----------      -----------  ----------
                                            -----------     -----------    -----------      -----------  ----------
</TABLE>

     Significant components of the restructuring reserves at March 31, 1999 
are as follows:

     IMPAIRMENT OF FIXED ASSETS - This primarily represents the reserve for 
loss on disposition of an idle warehouse.

     TERMINATION COSTS - This represents severance benefits associated with 
the termination of employees following the acquisition of the Company by 
Sunbeam (the "Sunbeam Acquisition") and for employees who were terminated as 
part of the Company's restructuring plans during 1997 and 1998. All 
termination benefits are expected to be paid by December 31, 2000.

     IDLE FACILITIES AND OTHER EXIT COSTS - This primarily relates to costs 
to be expended to complete the closing of two foreign facilities.

                                       10
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)
                                   (Unaudited)

6.   COMPREHENSIVE LOSS

     The components of the Company's comprehensive loss are as follows:

<TABLE>
<CAPTION>
                                                                                   Three Months
                                                                                  Ended March 31,        
                                                                           -----------------------------
                                                                               1999             1998    
                                                                           -------------    ------------
<S>                                                                        <C>              <C>
         Net earnings (loss)............................................   $       6,741    $     (2,646)
         Foreign currency translation adjustment, net of tax............         (12,149)         (2,418)
         Minimum pension liability adjustment, net of tax...............            --              (168)
                                                                           -------------    ------------
         Comprehensive loss.............................................   $      (5,408)   $     (5,232)
                                                                           -------------    ------------
                                                                           -------------    ------------
</TABLE>

7.   BASIC AND DILUTED EARNINGS PER COMMON SHARE

     Basic earnings per share is computed using the weighted average number 
of shares of outstanding common stock. Diluted earnings per share for the 
three months ended March 31, 1999 is based only on the weighted average 
number of common shares outstanding during the three months ended March 31, 
1999 because there were no common share equivalents. Stock options to 
purchase 923,670 shares of common stock were outstanding at March 31, 1999 
but were not included in the computation of common share equivalents because 
the option exercise price was greater than the average market price of 
Coleman's common stock during each of the respective years. Diluted earnings 
per share for the three months ended March 31, 1998 is based only on the 
weighted average number of common shares outstanding during the three months 
ended March 31, 1998 as the inclusion of 633,571 common share equivalents 
would have been antidilutive.

8.   RECENTLY ISSUED ACCOUNTING STANDARDS

     In June 1998, the Financial Accounting Standards Board issued Statement 
of Financial Accounting Standards ("SFAS") No. 133, "Accounting for 
Derivative Instruments and Hedging Activities". SFAS No. 133 establishes 
accounting and reporting standards for derivative instruments, including 
certain derivative instruments embedded in other contracts, (collectively 
referred to as derivatives) and for hedging activities. It requires an entity 
to recognize all derivatives as either assets or liabilities in the statement 
of financial position and measure those instruments at fair value. SFAS No. 
133 will be effective for the Company's fiscal year beginning January 1, 
2000. Earlier application of the provisions of SFAS No. 133 is encouraged; 
however, the Company has not determined if it will apply the provisions of 
SFAS No. 133 prior to January 1, 2000, nor has the Company estimated the 
impact of applying the provision of SFAS No. 133 on the Company's statement 
of financial position or on the statement of operations.

                                       11
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        (In thousands, except share data)
                                   (Unaudited)

9.   SEGMENT INFORMATION

     For detailed information regarding the Company's reportable segments, 
see Note 18 to the consolidated financial statements included in the 
Company's Annual Report on Form 10-K for the year ended December 31, 1998.

INFORMATION ABOUT SEGMENT PROFITS AND SEGMENTS ASSETS

<TABLE>
<CAPTION>
                                            Outdoor                                              All
                                          Recreation    Powermate     Eastpak   International   Other      Total
                                          ----------   ----------    --------   ------------- --------- -----------
<S>                                       <C>          <C>           <C>        <C>           <C>       <C>
Three Months Ended March 31, 1999:
   Revenues from external customers.....  $   95,146   $   64,518    $  3,083    $   116,497  $   1,446 $   280,690
   Intersegment revenues................      24,782        5,664      11,035             64       --        41,545
   Segment profit (loss)................       9,545        9,324      (3,095)         9,317     (1,605)     23,486
   Segment assets.......................     239,405      138,071      88,061        382,450      5,395     853,382

Three Months Ended March 31, 1998:
   Revenues from external customers.....      75,062       51,154       3,457         90,287     24,539     244,499
   Intersegment revenues................      20,635          295      10,000             80       --        31,010
   Segment profit (loss)................       1,963        3,269      (3,310)         6,500      2,230      10,652
   Segment assets.......................     275,428      133,654      96,702        342,209     15,706     863,699
</TABLE>

RECONCILIATION OF SELECTED SEGMENT INFORMATION TO THE COMPANY'S CONSOLIDATED 
TOTALS

<TABLE>
<CAPTION>
                                                                                             Three Months
                                                                                            Ended March 31,     
                                                                                     ---------------------------
                                                                                          1999          1998    
                                                                                     ------------  -------------
<S>                                                                                  <C>           <C>
REVENUES:
     Total revenues for reportable segments.....................................     $    320,789  $     250,970
     Other revenues.............................................................            1,446         24,539
     Elimination of intersegment revenues.......................................          (41,545)       (31,010)
                                                                                     ------------  -------------
       Total consolidated revenues..............................................     $    280,690  $     244,499
                                                                                     ------------  -------------
                                                                                     ------------  -------------

PROFIT OR LOSS:
     Total segment profit.......................................................     $     23,486  $      10,652
     Unallocated items:
       Corporate expenses.......................................................           (3,079)        (5,358)
       Corporate restructuring credits (charges)................................              552        (11,427)
       Interest expense, net....................................................           (7,575)        (9,044)
       Amortization of goodwill and deferred charges............................           (2,564)        (2,934)
       Gain on sale of business.................................................             --           26,137
       Other income (expense), net..............................................              531         (1,861)
                                                                                     ------------  -------------
         Earnings before income taxes, minority interest
             and extraordinary item.............................................     $     11,351  $       6,165
                                                                                     ------------  -------------
                                                                                     ------------  -------------
</TABLE>

                                       12
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

     The following discussion should be read in conjunction with the 
condensed consolidated financial statements and the related footnotes 
included elsewhere in this quarterly report on Form 10-Q, as well as the 
consolidated financial statements and related notes, and management's 
discussion and analysis of financial condition and results of operations in 
the Company's Annual Report on Form 10-K for the year ended December 31, 1998.

RESULTS OF OPERATIONS

RESTRUCTURING AND OTHER CHARGES

     The Company continuously reviews the adequacy of its restructuring 
reserves and adjusts the reserves as the various activities are completed or 
additional information becomes available which allows the Company to refine 
its estimates. During the three months ended March 31, 1999, the Company 
reduced its reserves by $0.6 million as a result of these reviews. During the 
three months ended March 31, 1998, the Company increased its reserves by $0.7 
million as a result of these reviews. In addition, during the three months 
ended March 31, 1998, the Company recorded other charges totaling $12.9 
million resulting from expenses associated with the Sunbeam Acquisition 
including advisory fees, abandoning a company-wide enterprise resource 
computer software system, and terminating a licensing services agreement.

     The following table (dollars in millions) provides an analysis of the 
changes in the Company's restructuring reserves since December 31, 1998. For 
detailed information regarding the Company's restructuring charges see Note 3 
to the consolidated financial statements included in the Company's Annual 
Report on Form 10-K for the year ended December 31, 1998.

<TABLE>
<CAPTION>
                                                             Inventory                         Idle
                                             Impairment      and Other                      Facilities
                                              of Fixed         Asset        Termination      and Other
                                               Assets       Impairments        Costs        Exit Costs    Total
                                               ------       -----------     -----------     ----------   -------
<S>                                          <C>            <C>             <C>             <C>          <C>
Balance at December 31, 1998...............    $  8.1         $   1.8        $    8.7         $   3.3    $  21.9
1999 (Credits) Charges.....................      (0.3)           (0.6)           --               0.3       (0.6)
Activity...................................      (0.7)           (0.4)           (2.5)           (0.7)      (4.3)
                                               ------         -------        --------         -------    -------
Balance at March 31, 1999..................    $  7.1         $   0.8        $    6.2         $   2.9    $  17.0
                                               ------         -------        --------         -------    -------
                                               ------         -------        --------         -------    -------
</TABLE>

     Significant components of the restructuring reserves at March 31, 1999 
are as follows:

     IMPAIRMENT OF FIXED ASSETS - This primarily represents the reserve for 
loss on disposition of an idle warehouse.

     TERMINATION COSTS - This represents severance benefits associated with 
the termination of employees following the Sunbeam Acquisition and for 
employees who were terminated as part of the 

                                       13
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

Company's restructuring plans during 1997 and 1998. All termination benefits 
are expected to be paid by December 31, 2000.

     IDLE FACILITIES AND OTHER EXIT COSTS - This primarily relates to costs 
to be expended to complete the closing of two foreign facilities.

THREE MONTHS ENDED MARCH 31, 1999 COMPARED WITH THE THREE MONTHS ENDED MARCH 
31, 1998

     Net revenues of $280.7 million for the three months ended March 31, 1999 
were $36.2 million or 14.8% greater than for the three months ended March 31, 
1998. The outdoor recreation products revenues, reflecting both United States 
and foreign non-hardware products, increased $33.6 million or 19.1% and 
occurred in nearly all product categories, primarily reflecting strong retail 
replenishment demand. The Company experienced unusually weak retail 
replenishment demand in the first quarter of 1998. The hardware products 
revenues increase of $2.6 million includes the impact of the loss of revenues 
from the Company's safety and security business in 1999 due to the sale of 
this business in March 1998. Excluding the revenues of this business, the 
hardware products revenues reflected an increase of $18.9 million, or 36.2%, 
over comparable 1998 revenues reflecting an increase in generator revenues 
attributable to increased awareness of power shortages arising from poor 
weather conditions and other events partially offset by a decline in 
compressor revenues. Geographically, United States revenues increased $15.5 
million, or 10.4%, and foreign revenues increased $20.7 million, or 21.6%. 
The United States revenues for the 1998 period includes revenues from the 
Company's safety and security business and spa business, both of which were 
sold during 1998. Excluding these revenues from the 1998 period, United 
States revenues in 1999 reflected an increase of $36.8 million or 28.9%.

     Gross profit for the three months ended March 31, 1999 was $82.3 million 
as compared to $68.7 million for the three months ended March 31, 1998. 
Higher sales volume and favorable manufacturing efficiencies resulting from 
higher production levels associated with the higher sales volume in the 1999 
period accounted for primarily all of the increase in gross profit.

     Selling, general and administrative ("SG&A") expenses, excluding the 
impact of restructuring credits of $0.6 million in 1999 and restructuring and 
other charges of $13.6 million in 1998, which are more fully described above, 
were $61.9 million or 22.1% of net revenues in 1999 compared to $61.2 million 
or 25.0% of net revenues in 1998. The overall dollar increase in SG&A 
expenses is primarily due to increased selling costs associated with the 
increase in 1999 sales partially offset by the reduction in SG&A expenses 
associated with the Company's safety and security business and spa business, 
both of which were sold during 1998, and whose total SG&A expenses during the 
first quarter of 1998 were $5.4 million. SG&A expenses as a percent of net 
revenues decreased to 22.1% in 1999 from 25.0% in 1998 as revenues grew 
faster than SG&A expenses.

     Interest expense was $7.6 million in 1999 compared with $9.0 million in 
1998, a decrease of $1.4 million. The decrease in interest expense reflects 
the favorable effects of lower borrowings.

     Minority interest represents the interest of minority shareholders in 
the Company's subsidiary operations in the Philippines, Indonesia, and Canada.

     The Company recorded a provision for income tax expense of $4.5 million 
or 40.0% of pre-tax earnings in 1999 compared to a provision for income tax 
expense of $7.5 million in 1998. The 

                                       14
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

1998 income tax provision reflects, among other things, (i) the write-off of 
approximately $1.7 million deferred tax assets that became unrealizable as a 
result of the change of control in the Company at the time of the Sunbeam 
Acquisition, (ii) $0.4 million of tax expense due to the impact of decreased 
foreign tax rates on deferred tax assets, and (iii) the impact of $7.1 
million non-deductible costs associated with the Sunbeam Acquisition. 
Excluding these items, the 1998 effective income tax rate would have been 
approximately 40.8%.

LIQUIDITY AND CAPITAL RESOURCES

     Cash used in operating activities during the three months ended March 
31, 1999 was $49.0 million compared to $83.6 million for the three months 
ended March 31, 1998. This decrease is attributable to higher earnings before 
non-cash charges and gain on sale of business. During the three months ended 
March 31, 1999, receivables increased $65.1 million and inventories increased 
approximately $28.8 million as a result of the seasonality of the Company's 
sales. The Company's capital expenditures were $3.9 million during the three 
months ended March 31, 1999.

     The Company's uses of cash for 1999 are expected to be primarily for 
working capital and capital expenditure requirements. Since the Sunbeam 
Credit Facility provides that Sunbeam will not contribute capital to Coleman 
or, with some exceptions, permit Coleman to borrow money from any source 
other than Sunbeam, the Company's ability to meet its cash operating 
requirements, including capital expenditures and other obligations, is 
dependent upon a combination of cash flows from operations and loans to the 
Company from Sunbeam. Sunbeam has informed the Company that it has the 
positive intent and ability to fund the Company's requirements for borrowed 
funds through April 10, 2000. Amounts loaned by Sunbeam are represented by 
the Intercompany Note which totaled $407.8 million at March 31, 1999 and, 
until the amendment and restatement of the Intercompany Note described below, 
were due on demand. For 1998 and through April 15, 1999, the Intercompany 
Note bore interest at a floating rate equivalent to the weighted average 
interest rate incurred by Sunbeam on its outstanding convertible debt and 
borrowings under its bank credit facility which during the three months ended 
March 31, 1999 was 7.3%. Coleman is a borrower under the Sunbeam Credit 
Facility for purposes of letters of credit borrowings.

     On April 15, 1999, Coleman, Sunbeam and, as to certain agreements, the 
lenders under the Sunbeam Credit Facility entered into the Agreements, 
including the Amended Intercompany Note, intercompany security and pledge 
agreements, an amendment to the Sunbeam Credit Facility and certain other 
agreements. The Amended Intercompany Note is due April 15, 2000. The Amended 
Intercompany Note bears interest at an annual rate equal to (i) 4% if the 
three month LIBOR quoted on the Telerate system is less than 6%, or (ii) 5% 
if the three month LIBOR quoted on the Telerate system is 6% or higher, 
subject to increases during an event of default, and interest will be payable 
by adding the amount of such interest to the principal balance of the Amended 
Intercompany Note. In addition, the Amended Intercompany Note provides an 
event of default under the Sunbeam Credit Facility will constitute an event 
of default under the Amended Intercompany Note and in certain circumstances 
the payment on the Amended Intercompany Note will be subordinate to Coleman's 
obligations under the Sunbeam Credit Facility. Pursuant to the Agreements, 
Coleman has pledged substantially all of its domestic assets, other than its 
real property, including 66% of its ownership interest in its direct foreign 
subsidiaries and domestic holding companies for its foreign subsidiaries and 
all of its ownership interest in its other domestic subsidiaries (but 
Coleman's subsidiaries have 

                                       15
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

not pledged their assets or stock of their subsidiaries), as security for the 
Amended Intercompany Note. Sunbeam has pledged the Amended Intercompany Note 
as security for the Sunbeam Credit Facility and assigned to such lenders the 
security pledged by Coleman for the Amended Intercompany Note. Under the 
Agreements, Coleman also agreed to give the lenders a direct pledge of the 
assets securing the Amended Intercompany Note to secure the obligations under 
the Sunbeam Credit Facility, subject to a cap equal to the balance due from 
time to time on the Amended Intercompany Note.

     The Sunbeam Credit Facility provides for a revolving credit facility in 
an aggregate principal amount of up to $400.0 million (subject to certain 
reductions) maturing March 31, 2005. In addition, pursuant to the Sunbeam 
Credit Facility, at March 31, 1999, Sunbeam had approximately $1,260.0 
million outstanding debt consisting of two tranches of term loans with 
scheduled repayments through maturity on March 31, 2005 and September 30, 
2006. As a result of Sunbeam's operating losses, Sunbeam was not in 
compliance with the financial covenants and other terms contained in the 
Sunbeam Credit Facility. As of June 30, 1998, Sunbeam entered into an 
agreement with its bank lenders which waived Sunbeam's compliance through 
December 31, 1998. On October 19, 1998, Sunbeam's bank lenders agreed to 
extend this waiver through April 10, 1999. In April 1999, the waiver was 
extended to April 10, 2000, and the Sunbeam Credit Facility was amended to 
add certain financial covenants and other terms. At the end of March 1999, 
approximately $230.0 million was available to the Company under the Sunbeam 
Credit Facility either through letters of credit borrowings or loans from 
Sunbeam.

     Borrowings under the Sunbeam Credit Facility are secured by a pledge of 
the stock of Sunbeam's material subsidiaries and by a security interest in 
substantially all of the assets of Sunbeam and its material domestic 
subsidiaries (other than Coleman and its subsidiaries, except as otherwise 
described herein), including the Amended Intercompany Note. Sunbeam has 
pledged its shares of Coleman common stock and its shares of Sunbeam Canada 
common stock owned by it as security under the Sunbeam Credit Facility. In 
addition, borrowings under the Sunbeam Credit Facility are guaranteed by a 
number of Sunbeam's wholly-owned material United States subsidiaries (but not 
Coleman) and such subsidiary guarantees are secured as described above. 
Coleman has pledged its inventory (but not that of its subsidiaries) and the 
proceeds from the sale of such inventory as collateral for its letter of 
credit borrowings under the Sunbeam Credit Facility.

     The Sunbeam Credit Facility contains covenants customary for credit 
facilities of a similar nature, and events of default customary for 
transactions of this type. Sunbeam is also required to comply with specified 
financial covenants and ratios. If an event of default occurs under the 
Sunbeam Credit Facility or Sunbeam is unable to refinance the Sunbeam Credit 
Facility or obtain another waiver or amendment of certain financial covenants 
and other terms by the time its existing waiver expires on April 10, 2000, 
the Company may be required to reduce, delay or cancel capital or other 
expenditures and/or seek loans or capital contributions from, or sell assets 
or capital stock to, lending institutions and/or other third parties or 
affiliates. There can be no assurance that any of such transactions could be 
consummated or if consummated, would be on favorable terms or in amounts 
sufficient to permit the Company to meets its cash requirements, or that any 
of such transactions would be permitted under Sunbeam's debt instruments then 
in effect. See Note 13 to the 

                                       16
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

Consolidated Financial Statements in the Company's Annual Report on Form 10-K 
for the year ended December 31, 1998.

EXPOSURE TO MARKET RISK

QUALITATIVE INFORMATION

     Coleman uses a variety of derivative financial instruments to manage its 
foreign currency and interest rate exposures. Coleman does not speculate on 
interest rates or foreign currency rates. Instead, it uses derivatives when 
implementing its risk management strategies to reduce the possible effects of 
these exposures. See also Note 11 to the Consolidated Financial Statements in 
the Company's Annual Report on Form 10-K for the year ended December 31, 1998.

     The Company's international operations are located primarily in Europe, 
Japan and Canada, which are not considered to be highly inflationary 
environments. With respect to foreign currency exposures, the Company 
principally uses forward and option contracts to reduce risks arising from 
firm commitments, anticipated intercompany sales transactions and 
intercompany receivable and payable balances. Coleman is most vulnerable to 
changes in United States dollar/Japanese yen (JPY), United States 
dollar/Canadian dollar (CAD), United States dollar/German Deutschemark (DM), 
and United States dollar/British Pound (GBP) exchange rates.

     The Company's interest income and expense are most sensitive to changes 
in the general level of U.S. interest rates. In this regard, changes in U.S. 
interest rates affect the interest earned on the Company's cash equivalents 
and short-term investments as well as interest paid on its debt. To mitigate 
the impact of fluctuations in U.S. interest rates, the Company maintains a 
portion of its debt as fixed rate in nature by entering into interest rate 
swap transactions.

     Coleman manages credit risk related to its derivative instruments 
through credit approvals, exposure limits, threshold amounts and other 
monitoring procedures.

QUANTITATIVE INFORMATION

     Set forth below are tabular presentations of certain information related 
to Coleman's investments in market risk sensitive instruments. All of the 
instruments set forth in the following tables have been entered into by 
Coleman for purposes other than trading.

     INTEREST RATE SENSITIVITY. The table below provides information about 
Coleman's derivative financial instruments and other financial instruments 
that are sensitive to changes in interest rates, including interest rate 
swaps and debt obligations.

                                       17
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

     For debt obligations, the table presents principal cash flows by 
expected maturity date and related March 31, 1999 weighted average interest 
rates. For interest rate swaps, the table presents notional amounts and 
weighted average interest rates for the contracts at March 31, 1999. Notional 
amounts are used to calculate the contractual payments to be exchanged under 
the contracts.

<TABLE>
<CAPTION>
                                                                Expected Maturity Date
                                  Balance   -----------------------------------------------------------
                                    at                                                   There-            Fair
                                  3/31/99    1999    2000     2001      2002      2003    after  Total      Value
                                  -------   ------   -----    -----     ----      ----   ------- ------     -----
                                                                (US$ Equivalent in Millions)
<S>                             <C>         <C>      <C>      <C>      <C>       <C>     <C>      <C>      <C> 
Long-Term Debt:
  Fixed Rate..................  $   0.6     $  0.1   $ 0.2    $ 0.1    $ 0.1     $  0.1  $   --   $   0.6   $    0.6
  Average Interest Rate.......      2.91%
Interest Rate Derivatives:
  Interest Rate Swaps:
     Variable to Fixed (US$)..  $  25.0     $  --    $  --    $ --     $ --      $ 25.0  $   --   $  25.0   $   (0.6)
     Average Pay Rate.........      6.12%
     Average Receive Rate.....      5.08%
</TABLE>

     EXCHANGE RATE SENSITIVITY. The table below provides information about 
Coleman's foreign currency derivative financial instruments and other 
financial instruments, including forward exchange agreements, by functional 
currency and presents such information in U.S. dollar equivalents. The table 
summarizes information on instruments and transactions that are sensitive to 
foreign currency exchange rates, including foreign currency variable rate 
credit lines, foreign currency forward exchange agreements and foreign 
currency purchased put option contracts. For debt obligations, the table 
represents principal cash flows and related weighted average interest rates 
by expected maturity dates. For foreign currency forward exchange agreements 
and foreign currency put option contracts, the table presents the notional 
amounts and weighted average exchange rates by expected (contractual) 
maturity dates. These notional amounts generally are used to calculate the 
contractual payments to be exchanged under the contract.

<TABLE>
<CAPTION>
                                                                     Balance
                                                                       at            Fair
                                                                   3/31/99 (1)       Value
                                                                   -----------       -----
                                                                 (US$ Equivalent in Millions)
<S>                                                              <C>                <C>
Foreign Currency Short-Term Debt:
  Variable Rate Credit Lines (Europe, Japan and Asia)..........     $   48.4        $  48.4
  Weighted Average Interest Rate...............................          2.8%
Forward Exchange Agreements:
  (Receive US$/Pay DM)
        Contract Amount........................................     $    9.0        $   9.9
        Average Contractual Exchange Rate......................         1.62
  (Receive US$/Pay JPY)
        Contract Amount........................................     $    9.0        $   9.2
        Average Contractual Exchange Rate......................       114.73
  (Receive US$/Pay GBP)
        Contract Amount........................................     $    3.5        $   3.6
        Average Contractual Exchange Rate......................          .60

                                       18
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

Purchased Put Option Agreements:
  (Receive US$/Pay DM)
        Contract Amount........................................     $   15.8        $   0.4
        Average Strike Price...................................         1.80
  (Receive US$/Pay JPY)
        Contract Amount........................................     $   12.4        $   0.3
        Average Strike Price...................................        125.0
  (Receive US$/Pay GBP)
        Contract Amount........................................     $    1.4        $   0.0
        Average Strike Price...................................          .62
  (Receive US$/Pay CAD)
        Contract Amount........................................     $   15.0        $   0.1
        Average Strike Price...................................         1.54
</TABLE>

------------------
(1)  None of the instruments listed in the table have maturity dates beyond
     1999.

SEASONALITY

     The Company's sales generally are highest in the second quarter of the 
year and lowest in the fourth quarter. As a result of this seasonality, the 
Company has generally incurred a loss in the fourth quarter. The Company's 
sales may be affected by unseasonable weather conditions.

YEAR 2000 READINESS DISCLOSURE

     The Company is continuing the process of assessing the impact of the 
Year 2000 on its operations. The Company is being assisted in its review and 
remediation work by Sunbeam's Year 2000 Program Management Office and 
consulting firms employed by Sunbeam. The Company has completed an inventory 
of its hardware and software systems, manufacturing equipment, electronic 
data interchange, telecommunications and other technical assets potentially 
subject to Year 2000 problems, such as security and telephone systems and 
controls for lighting, heating, ventilation and facility access. 
Additionally, the Company is assessing the effects of noncompliance by its 
vendors, service providers, customers and financial institutions.

     The Company relies on its information technology functions to perform 
many tasks critical to its operations. Significant transactions that could be 
impacted by Year 2000 noncompliance include, among others, purchases of 
materials, production management, order entry and fulfillment, and payroll 
processing. Systems and applications that have been identified by the Company 
to date as not currently Year 2000 compliant that are critical to the 
Company's operations include certain of its financial software systems, which 
process the order entry, purchasing, production management, general ledger, 
accounts receivable, and accounts payable functions, and critical 
applications in the Company's manufacturing and distribution facilities.

     The Company's corrective work to achieve Year 2000 compliance has 
included the following: (i) installation of Year 2000 compliant JD Edwards 
software which has recently been completed in one location and is scheduled 
to be completed in another location in September of 1999; (ii) the 
installation of Year 2000 compliant JBA software in one location which is 
scheduled to be completed 

                                       19
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

by June 1999; and (iii) remediation of software codes for existing programs 
in another location which is scheduled to be completed by July of 1999. The 
Company has identified one of these locations as possessing significant Year 
2000 issues. Coleman's failure to complete a timely conversion of this 
location to a Year 2000 compliant system could have a material impact on the 
Company's operations. Management believes, although there are significant 
systems that are being or will be modified or replaced, Coleman's information 
systems environment will be made Year 2000 compliant prior to January 1, 2000.

     As of March 31, 1999, the Company had expended approximately $6.0 
million related to remediation of Year 2000 issues, of which approximately 
$5.0 million was recorded as SG&A expenses and the remainder as capital 
expenditures. The Company's preliminary assessment of the total costs to 
address and remedy Year 2000 issues is approximately $12.0 million. This 
estimate includes the costs of software and hardware modifications and 
replacements, and fees to third party consultants, but excludes the costs 
associated with Company employees. The Company expects these expenditures to 
be financed through operating cash flows or borrowings, as applicable. There 
can be no assurance that these preliminary estimates will not change as the 
Company completes its assessment of the Year 2000 issues. Additionally, the 
Sunbeam Credit Facility does not permit Sunbeam and its subsidiaries, 
including Coleman and its subsidiaries, to spend more than $50.0 million in 
the aggregate on Year 2000 testing and remediation during the year ended 
December 31, 1999. Sunbeam currently expects that for 1999, Year 2000 testing 
and remediation spending for Sunbeam and its subsidiaries, including Coleman 
and its subsidiaries, will total approximately $41.0 million.

     With the exception of certain aspects of the Company's Year 2000 
readiness program, the Company did not engage an independent third party to 
verify the program's overall approach or total cost. However, the Company 
believes through its use of various external consulting firms which perform 
significant roles within the program, the Company's exposure in this regard 
is mitigated. In addition, through the use of external third party diagnostic 
tools which helped to identify potential Year 2000 issues in the software 
code which the Company is remediating, the Company believes it has also 
mitigated its risk by validating and verifying key program components.

     The Company has contacted its major vendors and suppliers of products 
and services to determine their Year 2000 readiness, and is continuing to 
monitor their status with respect to such plans. This review includes third 
party providers to whom the Company has outsourced the processing of its cash 
receipt and cash disbursement transactions and its payroll. The Company is 
currently assessing the vendor responses and will conduct additional reviews, 
including on-site meetings, if deemed necessary, with any major suppliers who 
have not indicated their readiness for the Year 2000. The failure of certain 
of these third party suppliers to become Year 2000 compliant could have a 
material adverse impact on the Company. The Company will also contact its 
customers to determine if they are prepared for Year 2000 issues. Their 
failure to evaluate and prepare for Year 2000 issues could have a material 
adverse effect on Coleman's operations.

     The Company plans to establish a contingency plan for addressing any 
effects of the Year 2000 on its operations, whether due to noncompliance of 
the Company's systems or those of third parties. The Company expects to 
complete such contingency plan by September 30, 1999 and expects such 
contingency plan will include an analysis of the Company's worst case 
scenario and will address 

                                       20
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

alternative processes, such as manual procedures to replace those processed 
by noncompliant systems, potential alternative service providers, and plans 
to address compliance issues as they arise. At this time, the Company 
believes the most likely "worst-case" scenario relating to Year 2000 issues 
generally involves potential disruptions in areas in which the Company's 
operations must rely on vendors, suppliers and customers whose systems may 
not work properly after January 1, 2000. While such failures could either 
directly or indirectly affect important operations of the Company and its 
subsidiaries in a significant manner, the Company cannot at present estimate 
either the likelihood or the potential cost of such failures. However, 
subject to the nature of the systems and applications of the Company or third 
parties which are not made Year 2000 compliant, the impact of such 
non-compliance on the Company's operations could be material if appropriate 
contingency plans cannot be developed prior to January 1, 2000.

     Because Year 2000 readiness is critical to the business, the Company has 
redeployed some resources from non-critical system enhancements to address 
Year 2000 issues. In addition, due to the importance of information systems 
to the Company's business, management has deferred non-mission-critical 
systems enhancements as much as possible. The Company does not expect these 
redeployments and deferrals to have a material impact on the Company's 
financial condition or results of operations.

CAUTIONARY STATEMENTS

     Certain statements in this Quarterly Report on Form 10-Q may constitute 
"forward-looking" statements within the meaning of the Private Securities 
Litigation Reform Act of 1995, as the same may be amended from time to time 
(the "Act") and in releases made by the Securities and Exchange Commission 
from time to time. Such forward-looking statements involve known and unknown 
risks, uncertainties and other factors which may cause the actual results, 
performance or achievements of the Company to be materially different from 
any future results, performance or achievements expressed or implied by such 
forward-looking statements. Statements that are not historical facts, 
including statements about the Company's beliefs and expectations, are 
forward-looking statements. Forward-looking statements can be identified by, 
among other things, the use of forward-looking language, such as "believe," 
"expects," "estimates", "projects", "may," "will," "should," "seeks," 
"plans," "scheduled to," "anticipates" or "intends" or the negative of those 
terms, or other variations of those terms or comparable language, or by 
discussions of strategy or intentions. Forward-looking statements speak only 
as of the date they are made, and the Company undertakes no obligation to 
update them. These forward-looking statements were based on various factors 
and were derived utilizing numerous important assumptions and other important 
factors that could cause actual results to differ materially from those in 
the forward-looking statements. These cautionary statements are being made 
pursuant to the Act, with the intention of obtaining the benefits of the 
"Safe Harbor" provisions of the Act. The Company cautions investors that any 
forward-looking statements made by the Company are not guarantees of future 
performance. Important assumptions and other important factors that could 
cause actual results to differ materially from those contained in the 
forward-looking statements with respect to the Company include, but are not 
limited to risks associated with:

    -    high leverage,


                                       21
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

    -    Sunbeam having sufficient borrowing capacity or other funds to lend to 
         the Company to satisfy the Company's cash needs, 

    -    unavailability of sufficient cash flows from operations and borrowings 
         from Sunbeam, and the inability of the Company to secure loans or 
         capital contributions from, or sell assets or capital stock to, lending
         institutions and/or other third parties or affiliates,

    -    Sunbeam's ability to comply with the terms of the Sunbeam Credit 
         Facility, or to continue to obtain waivers from its bank lenders with 
         respect to compliance with the existing covenants contained in the 
         Sunbeam Credit Facility, and to continue to have access to its 
         revolving credit facility,

    -    Coleman's ability to maintain and increase market shares for its 
         products at acceptable margins, 

    -    Coleman's ability to successfully introduce new products and to provide
         on-time delivery and a satisfactory level of customer service,

    -    changes in domestic and/or foreign laws and regulations, including 
         changes in tax laws, accounting standards, environmental laws, 
         occupational, health and safety laws,

    -    access to foreign markets together with foreign economic and political
         conditions, including currency fluctuations, and trade, monetary, 
         fiscal and/or tax policies,

    -    uncertainty as to the effect of competition in existing and potential
         future lines of business, 

    -    fluctuations in the cost and/or availability of raw materials and/or
         products, 

    -    changes in the availability and/or costs of labor, 

    -    effectiveness of advertising and marketing programs, 

    -    product quality, including excess warranty costs, product liability
         expenses and costs of product recalls, 

    -    weather conditions which are adverse to the specific businesses of 
         Coleman, 

    -    the possibility of a recession in the United States or other countries
         resulting in a decrease in consumer demands for Coleman's products,

    -    ability of third party service providers that have been engaged to 
         provide services such as factory maintenance and certain back office 
         administrative services to timely and accurately provide their services
         to the Company,

    -    changes in consumer preferences or a decrease in the public's interest 
         in camping and related activities, 

    -    combinations or other actions by retail customers that adversely affect
         sales or profitability, 

    -    actions by competitors including business combinations, new product
         offerings and marketing and promotional activities, and

    -    failure of Coleman and/or its customers and suppliers of goods or 
         services to timely complete the remediation of computer systems to 
         effectively process Year 2000 information.

     Other factors and assumptions not included in the foregoing may cause 
the Company's actual results to materially differ from those projected. The 
Company assumes no obligation to update any forward-looking statements or 
these cautionary statements to reflect actual results or changes in other 
factors affecting such forward-looking statements.












                                       22
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

        None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a)  Exhibits

<TABLE>
<CAPTION>
            Exhibit No.                         Description
            -----------                         -----------
<S>                        <C>
             4.1 /X/       Intercompany Pledge and Security Agreement, dated as
                           of April 15, 1999, between The Coleman Company, Inc.
                           and Sunbeam Corporation.

             4.2 /X/       Intercompany Security Agreement dated as of April 15,
                           1999, between The Coleman Company, Inc. and Sunbeam 
                           Corporation.

             27  /X/       Financial Data Schedule, submitted electronically to
                           the Securities and Exchange Commission for 
                           information only and only and not filed.
            ------------------
             /X/  Filed herewith
</TABLE>

        (b)  Report on Form 8-K

             No reports on Form 8-K were filed during the quarter ended March
             31, 1999.






                                       23
<PAGE>

                   THE COLEMAN COMPANY, INC. AND SUBSIDIARIES

     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, thereunto duly authorized.

                                   THE COLEMAN COMPANY, INC.

Date:       May 19, 1999           By: /s/ Gwen C. Wisler                      
     -------------------------        -----------------------------------------
                                      Gwen C. Wisler
                                      Executive Vice President and
                                           Chief Financial Officer




















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