Wauwatosa-based Briggs & Stratton Corp. posted fiscal third quarter net income of $37.1 million, or 75 cents per share, up from $9.3 million, or 18 cents per share, for the same period of 2007.
The third quarter of 2007 included a $35.2 million pretax ($21.4 million after tax or $.42 per diluted share) write-down of assets primarily associated with the rationalization of a major operating plant in the United States, the company said.
Net sales for the third quarter of 2008 were $724.8 million, up from 2007 third quarter net sales of $717 million. Consolidated net sales increased $7.8 million or 1 percent. The entire increase is due to improved sales in the engines segment partially offset by lower sales in the power products segment, the result of lower sales volumes of pressure washer and generator products, the company said.
For the first nine months of fiscal 2008, consolidated net sales were $1.570 billion and consolidated net income was $22.1 million or 45 cents per diluted share. For the same period a year ago, consolidated net sales were $1.479 billion, and the consolidated net loss was $10.8 million or 22 cents per diluted share, including the $35.2 million pretax ($21.4 million after tax or $.43 per diluted share) write-down of assets discussed above for the third quarter of fiscal 2007.
However, the company is wary of the months ahead.
"We are now in a prime part of the spring selling season and it appears retail sales of powered equipment have started slowly," the company said. "We are also aware that equipment manufacturers and retailers are being very mindful of their working capital levels due to uncertainty in the U.S. economy. Consequently, we are providing a forecast that reflects the potential risk we see in the market at this time. The forecast reflects unit volume in the engines segment that now will be comparable to fiscal 2007 shipments and our outlook for pressure washer product is also being revised downward to slightly under fiscal 2007 levels. Our forecast reflects our intention to keep our production levels up through May so that if the potential risk does not materialize we can satisfy demand; if we come to the end of May and the demand decline has occurred, we presently plan to scale back production for the rest of the fiscal year to control our working capital investment. The current forecast reflects a lower gross profit due to lower sales volumes and production levels in both segments."
