Wauwatosa-based Briggs & Stratton Corp. reported an increase in both profits and revenue during the second quarter of its fiscal year, driven by strength in its products segment.
The manufacturer reported net income of $15.3 million for the quarter, up 21.2 percent over the previous year. Earnings improved from 28 to 35 cents per diluted share. Revenue was up 3.6 percent to $428.2 million.
The result beat Wall Street expectations by 7 cents for earnings and almost $11.7 million for revenue, according to SeekingAlpha.
The revenue increase was largely due to an $18.2 million increase in net sales for the products segment, which brought in revenue of $190.7 million. The increase was the result of higher shipments of portable generators because of Hurricane Matthew, increased sales of commercial lawn and garden equipment and the timing of international shipments.
The engines segment, meanwhile, saw net sales drop slightly from $262 million to $260.7 million. That figure was boosted by a change in sales terms for overseas customers that resulted in earlier revenue recognition. The change increased sales by approximately 50,000 units and $5 million in revenue.
On comparable terms, engine volumes were down by 2 percent or 40,000 units. The company believes the drop is timing related and customers will be producing later in the fiscal year.
Todd Teske, Briggs & Stratton chairman, president and chief executive officer, said the company is pleased with how the first half of the year has played out.
“We have set a solid foundation on which to deliver our full year projected sales and profitability growth,” he said.
Teske said the company’s engine placement for lawn and garden is set and is consistent with the previous season.
He highlighted a number of innovations and new offerings and said sustaining momentum in commercial engines is important moving forward.
“These new offerings, along with many other actions we are taking, further demonstrate that we are executing our strategy of investing in higher value, higher margin products while diversifying our business,” Teske said. “All things considered, we believe that we are set up for a solid back half of the fiscal year.”