On August 12, Briggs & Stratton Corporation announced the financial results for its fourth fiscal quarter and fiscal year ended June 28, 2015.
* Fourth quarter fiscal 2015 consolidated net sales were $539 million, an increase of $42 million or 8.5 percent compared to the prior year. Net sales increased $51.5 million or 10.4 percent before currency impacts.
* Fourth quarter fiscal 2015 consolidated adjusted net income was $23 million, a 58-percent improvement from the adjusted net income of $14.6 million in the fourth quarter of fiscal 2014.
* Fourth quarter fiscal 2015 adjusted diluted earnings per share was $0.51, a 65-percent improvement from the adjusted diluted earnings per share of $0.31 last year.
* Fiscal 2015 net sales increased by $36 million or 1.9 percent compared to last year. Net sales increased $65 million or 3.5 percent before currency impacts.
* Fiscal 2015 adjusted net income increased 66 percent to $64.8 million or $1.42 per diluted share from last year’s adjusted net income of $39 million or $0.82 per diluted share.
“Sales and earnings significantly improved this year as we saw continued improvement in our key markets, a more normal start to the spring lawn and garden season, and solid execution of our strategy by our team,” commented Todd J. Teske, chairman, president and chief executive officer of Briggs & Stratton Corporation. “The strong earnings improvement is due to executing our plan this year in a number of areas. We held or grew our engine market share. We expanded margins in both the engines and products businesses due to launching several new products, growing our portfolio of higher-margin commercial products by completing two acquisitions in the jobsite and commercial turf categories, and executing on our cost-reduction initiatives in the products business. These sales and profitability improvements were achieved despite significant foreign currency headwinds caused by a stronger U.S. dollar.”
“Our balance sheet remains strong with additional improvements in working capital that we anticipated at the beginning of the year,” added David J. Rodgers, senior vice-president and chief financial officer of Briggs & Stratton Corporation. “Our balance sheet, and a 17-percent increase in cash flows from operations, enabled us to repurchase $47 million of our common shares during the year and announce an 8-percent increase in the dividend reflecting our continued confidence in the outlook for our business.”
Consolidated net sales for the fourth quarter of fiscal 2015 were $539 million, an increase of $42 million or 8.5 percent from the fourth quarter of fiscal 2014. Engine sales increased during the quarter primarily due to higher shipments to OEM customers in Briggs & Stratton’s key markets on improved market conditions and share gains. Net sales also benefited from the results of the Allmand and Billy Goat acquisitions, which closed in August 2014 and May 2015, respectively, and higher sales of commercial lawn and garden equipment. The increase in net sales was partially offset by the strengthening of the U.S. dollar, predominantly against the Australian dollar, Brazilian real and Euro, which led to an unfavorable foreign currency impact on sales of $9.4 million. The fourth quarter of fiscal 2015 adjusted consolidated net income of $23 million or $0.51 per diluted share improved by $8.4 million or $0.20 per diluted share compared to the adjusted consolidated net income of the fourth quarter of fiscal 2014.
Consolidated net sales for fiscal 2015 were $1.89 billion. Consolidated net sales increased $65 million or 3.5 percent before the impact of unfavorable currency rates. Consolidated net sales increased $36 million or 1.9 percent from fiscal 2014, which includes $29 million related to unfavorable currency rates. The increase in net sales is due to the results from the Allmand and Billy Goat acquisitions, a 3-percent increase in global engine unit shipments, and higher sales of commercial lawn and garden equipment and pressure washers in North America. Partially offsetting the increase were reduced sales of generators, unfavorable engine sales mix, and the planned actions to narrow the assortment of lower-priced Snapper consumer lawn and garden equipment. Fiscal 2015 adjusted consolidated net income of $64.8 million or $1.42 per diluted share improved by $25.8 million or $0.60 per diluted share due to improved margins in the engines and products businesses due to cost reductions, including restructuring plan savings, new product introductions with higher margins, and the impact of completing two acquisitions, partially offset by an unfavorable foreign currency impact of approximately $7.6 million.
For more specifics on these financial results, go to www.briggsandstratton.com.