On April 24, Briggs & Stratton Corporation announced financial results for its third fiscal quarter ended March 30, 2014.
Highlights were as follows:
* Third quarter fiscal 2014 consolidated net sales were $628.4 million, a decrease of $8.9 million or 1.4 percent from the prior year.
* Third quarter 2014 consolidated adjusted net income, excluding restructuring actions, was $38.7 million, or $5.2 million lower than the adjusted net income of $43.9 million in the third quarter of fiscal 2013.
* Reduced shipments of generators led to a decrease in net sales and diluted earnings per share by an estimated $25 million and $0.06, respectively, in the third fiscal quarter compared to last year, which benefitted from replenishment following Hurricane Sandy.
* Third quarter cash flows from operations improved more than $30 million from the prior year; last 12 month cash flows from operations total $221 million.
* Fiscal 2014 third quarter net debt decreased $122 million from the third quarter of fiscal 2013.
“During our third quarter, we saw increases in shipments of engines for lawn and garden equipment in the U.S. despite below-average temperatures and a slow start to the spring retail season this year,” commented Todd J. Teske, chairman, president and chief executive officer of Briggs & Stratton Corporation. “Our U.S. shipments of large engines increased in excess of 10 percent in the quarter, reflecting our gains in retail placement. Higher U.S. lawn & garden engine shipments were offset by reduced engines shipped for generators compared with last year when we were replenishing generator inventories following Hurricane Sandy.
“Shipments of lawn & garden products in the quarter decreased in line with industry trends given the slow start to the spring season.
“We are pleased with the responses so far to our new product introductions this year. Orders for our innovative new engine technologies, including our Quiet Power Technology, 810CC Commercial Series engine and our Mow-n-Stow engine have exceeded our pre-season expectations, and we are looking forward to additional consumer response this summer. Also, our Powerflow+ Technology introduction is showing early success.”
Teske further stated, “Cash flows from operations continue to be strong due to continued operational focus on reducing our investment in working capital. Last 12 months cash flows from operations are in excess of $220 million and reflect lower inventories of $68 million despite holding higher inventories of portable generators in the current year.
“We believe that the colder-than-normal temperatures have delayed retail sales of equipment by approximately three to four weeks and perhaps longer as we have not yet seen the weather break across the United States. Weather in Europe has been favorable to date. Moving forward this spring, we continue to focus on successfully launching our new and innovative products, closely managing working capital, optimizing the SKUs in our product portfolio, and improving our operations to improve our overall margins in both the engines and products businesses.”
For more information, visit www.briggsandstratton.com.