Wauwatosa-based Briggs & Stratton Corp. reported a drop in revenue and earnings for the third quarter of fiscal 2016, driven by weakness in the oil and gas market, foreign currency exchange and uncertainty about the global economy.
The small engine maker did see positive signs in the United States from the housing market and regional early season demand.
The company reported earnings of 61 cents per diluted share, down 18.6 percent from the previous year with fewer shares outstanding. Net income was down 20.9 percent to $26.8 million. Revenue was off 2.4 percent to $603.8 million.
Todd Teske, Briggs chairman, president and chief executive officer, said the company’s results were impact by a number of economic factors.
“Despite the headwinds, we continue to see improvement in our Products Segment as we focus more on commercial equipment and driving innovation throughout the segment,” Teske said. “We also see solid performance from our Engines Segment as we continue to introduce engines with new, innovative features.”
Teske said the company is optimistic for the lawn and garden season.
Revenue for the engines segment was off 3.8 percent to $415.7 million. Total volume shipped was down by 120,000 engines, mostly because of lower shipments to Europe and Asia amid concerns about the global economy. Shipments in North America were up behind normal timing of pressure washer production and strength in walk mower engines.
Sales in the products segment increased 4.6 percent to $220.8 million on the strength of increased sales of high-end residential and commercial lawn and garden equipment. Lower international sales, particularly to Australia, cut into the gains.
The company also reduced its full year revenue guidance because of weakness in consumer spending for outdoor power equipment in international markets and reduced demand for job site products due to elevated channel inventories. The new range of between $1.85 billion and $1.92 billion was down from $1.90 billion to $1.96 billion.
Teske and other Briggs executives will hold a quarterly earnings call with analysts Friday.
