Briggs & Stratton Corp. saw revenue fall by 7 percent in its second quarter because of currency issues and lower sales of job site products, but earnings were up compared to last year.
The company reported net income for the second quarter of fiscal 2016 was $12.6 million, or 28 cents per diluted share, compared to $6.9 million, or 15 cents per diluted share, in the second quarter of 2015. The company had reported a net loss in the first quarter of the year.
The Wauwatosa-based maker of small engine products had revenue of $413 million in the quarter ending Dec. 27, down $31 million from the same time last year. Unfavorable currency conditions – particularly a weakening of the Euro, Australian Dollar and Brazilian Real – accounted for a portion of the decrease, but revenue was still down $22 million excluding currency impacts.
The company said the decrease was primarily due to lower sales of job site products, the timing of pressure washer shipments and lower sales of standby generators. Increased shipments of engines and higher sales of commercial lawn and garden products in North America helped offset some of the decreasing sales.
Chairman, president and chief executive officer Todd Teske said the results reflected the company’s focus on selling higher margin products and improving operations. He said he expects “modest industry growth” in the United States and there is reason to maintain “some caution” regarding the global economy.
The company increased its guidance for 2016, estimating that net income would be between $56 million and $63 million or $1.25 to $1.41 per diluted share. The previous guidance was for net income of $54 million to $61 million or $1.20 to $1.36 per diluted share.
The guidance for revenue remained the same, at between $1.9 billion to $1.96 billion.
The company’s engines segment shipped 15,000 fewer engines in the quarter, mainly because orders for Europe and Asia were delayed. Shipments to North America were actually up. Segment revenue was down by $10 million, or 3.6 percent.
The products segment saw revenue decrease by $27 million, or 13.3 percent. That figure dropped to $19.9 million after currency impacts. The decrease was driven by lower sales of job site products, pressure washers, standby generators and snow throwers, while increased sales of high-end residential and commercial lawn and garden equipment and the acquisition of Billy Goat helped offset the decrease.
