MILWAUKEE — Briggs & Stratton Corp. (NYSE: BGG) recently financial results for its second fiscal quarter ended December 27, 2015.

Highlights:

  • Second quarter fiscal 2016 consolidated net sales were $413 million, a decrease of $31 million or 7.0% compared to the prior year. Net sales decreased $22 million or 5.0% before currency impacts.
  • Second quarter fiscal 2016 consolidated adjusted net income improved to $15.1 million compared to the adjusted net income of $11.9 million in the second quarter of fiscal 2015. Second quarter fiscal 2016 consolidated net income was $12.6 million compared to the net income of $6.9 million in the second quarter of fiscal 2015.
  • Second quarter fiscal 2016 adjusted diluted earnings per share was $0.34, an improvement compared to the adjusted diluted earnings per share of $0.26 last year. Second quarter fiscal 2016 diluted earnings per share was $0.28 compared to the diluted earnings per share of $0.15 last year.

"We are pleased to report improved quarterly results with continued margin improvements in both our engines and products businesses. These improvements reflect our focus on selling higher margin products as well as our focus on improving our operations," commented Todd J. Teske, Chairman, President and Chief Executive Officer of Briggs & Stratton Corp. Teske continued, "We expect modest industry growth in the upcoming season here in the U.S. and we maintain some caution regarding the global economy. Looking forward to the upcoming U.S. lawn & garden season, we have gained additional placement of our engines on lawn and garden products as compared to our placement last year. In addition to introducing new products to the market this spring, we will be expanding our offering of new products that we have launched over the past several years to give consumers and commercial users around the world greater access to this innovation."

Consolidated Results

Consolidated net sales for the second quarter of fiscal 2016 were $413 million, a decrease of $31 million or 7.0% from the second quarter of fiscal 2015. Net sales decreased during the quarter partially due to an unfavorable foreign currency impact, net of price increases, of $8.8 million, predominately related to the weakening of the Euro, Australian Dollar, and Brazilian Real. Excluding currency impacts, net sales decreased by $22 million. The decrease in net sales was primarily a result of lower sales of job site products, the timing of pressure washer shipments, and lower sales of standby generators as well as lower shipments in certain international regions. Partially offsetting this decrease were increased shipments of engines to customers in North America and higher sales of commercial lawn and garden products in North America. The second quarter fiscal 2016 consolidated net income and diluted earnings per share, which includes restructuring charges, litigation charges, and the reinstatement of a  deferred tax asset, were $12.6 million and $0.28, respectively, compared to a net income of $6.9 million and diluted earnings per share of $0.15 in the second quarter of fiscal 2015. The second quarter fiscal 2016 adjusted consolidated net income was $15.1 million or $0.34 per diluted share as compared to adjusted consolidated net income of $11.9 million or $0.26 per diluted share in the second quarter of fiscal 2015.  

Consolidated net sales for the first six months of fiscal 2016 were $703 million, a decrease of $34.1 million or 4.6% from the first six months of fiscal 2015. Net sales decreased during the first six months of fiscal year 2016 partially due to an unfavorable foreign currency impact, net of price increases, of $17.6 million, predominately related to the weakening of the Euro, Australian Dollar, and Brazilian Real.  Excluding currency impacts, net sales decreased by $16.5 million. The decrease in net sales was primarily from lower sales of job site products, the timing of pressure washer shipments, and lower shipments to certain international regions. Partially offsetting this decrease were sales from Billy Goat, which was acquired in May 2015, higher shipments of small engines used on walk mowers, and increased sales of commercial lawn and garden products. The fiscal 2016 six months consolidated net loss, which includes restructuring charges, acquisition-related charges, litigation charges, and the reinstatement of a deferred tax asset, was $5.6 million or $0.13 per diluted share. The first six months of fiscal 2015 consolidated net loss, which included restructuring charges and acquisition-related charges, was $8.3 million or $0.19 per diluted share. The first six months of fiscal 2016 adjusted consolidated net loss was $0.1 million or$0.01 per diluted share as compared to adjusted consolidated net income of $2.6 million or $0.05 per diluted share in the first six months of fiscal 2015. 

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