Briggs and Stratton Corporation reports fourth quarter results

On Aug. 17, 2016, Briggs & Stratton Corporation announced financial results for its fourth fiscal quarter ended July 3, 2016.

  • Fourth quarter net sales were $502 million. Net sales decreased $32 million or 6.0 percent before currency impacts due to cooler-than-normal spring weather in North America and Europe.
  • Fourth quarter net income was $5.3 million; adjusted net income was $20.1 million. Fourth quarter diluted earnings per share was $0.12; adjusted diluted earnings per share was $0.46.
  • Fiscal 2016 net sales were $1.81 billion. Net sales decreased $65 million or 3.4 percent before currency impacts due to a $25-million reduction in jobsite products sales and lower sales caused by cool spring weather in North America and Europe, as well as economic uncertainty in many international markets, including Europe.
  • Fiscal 2016 net income was $26.6 million or $0.60 per diluted share; adjusted net income was $55.0 million or $1.25 per diluted share.
  • Repurchased $37.4 million in shares under the share repurchase program and paid $23.6 million in dividends to shareholders during fiscal 2016.
  • Announced a quarterly dividend increase of 4 percent to $0.14 per share — the third increase in three consecutive years.
  • Fiscal 2017 revenues estimated to increase to a range of $1.84 billion to $1.89 billion.
  • Fiscal 2017 earnings per share estimated to be $1.26 to $1.41, including $0.11 to $0.14 per share relating to additional investments to upgrade the company’s ERP system and its commercial mowing capacity expansion. This also includes additional pension expense and negative foreign currency for a combined impact of $0.09 per share, as well as a higher income tax expense of approximately $0.08 per share as the income tax rate returns to normal levels.

“Our fiscal fourth quarter sales were impacted by cooler-than-normal temperatures in North America and Europe,” commented Todd J. Teske, chairman, president and chief executive officer of Briggs & Stratton Corporation. “Industry shipments in April and May were down significantly when compared to last year as the cooler weather impacted retail sell through. We believe that retail sell through has improved in the latter part of June and into July in both regions such that elevated channel inventories at the end of our fiscal year are reducing to more normal levels.

“Compounding this was the impact of global economic uncertainty, which has challenged consumer confidence and made goods exported to international markets relatively more expensive also impacting demand. In the U.S., commercial lawn and garden continues to be a bright spot for our business. Our Ferris brand of commercial mowers and Billy Goat both achieved record sales, and we grew our commercial engine sales as well. Our team has delivered superior products during a time when higher-end residential and multi-family housing has experienced strong growth. While we have observed slower growth of entry-level housing to date, we have positioned ourselves well by delivering new and innovative products with features to attract new home buyers as they enter the market and to encourage existing home owners to replace their equipment to make work easier.”