Briggs & Stratton Reports Sales Down in 4Q & Full Year
Aug 15, 2012
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Briggs & Stratton Corp. said fiscal 2012 consolidated net sales were $2.1 billion, down 2.1% from fiscal 2011. Fourth quarter fiscal 2012 consolidated net sales were $501.2 million, down 17.2% from 4Q fiscal 2011.
"This lawn and garden season presented significant headwinds for our two largest markets, North America and Western Europe," said Chairman, President and CEO Todd J. Teske. "The exceptionally severe drought negatively impacted sales to much of North America and more than offset the favorable growing conditions present in the early spring. In addition, consumer sentiment in North America and Europe remains very cautious. Despite these market challenges, we are pleased that our Products Segment substantially increased profitability in fiscal 2012 through operational efficiency improvements and higher sales and production volumes."
Briggs & Stratton is a supplier of lawn and garden equipment engines and is also a producer of its own lawn and garden equipment. It's fourth fiscal quarter and fiscal year ended on July 1, 2012.
Fiscal 2012 consolidated net income was $29.0 million, up 19.1% from fiscal 2011. Fiscal 2012 4Q consolidated net loss was $8.4 million, an improvement of 52.8% from 4Q fiscal 2011.
Adjusted net income for fiscal 2012 was $57.8 million, which down $5.4 million from fiscal 2011. Adjusted net income for 4Q fiscal 2012 was $10.8 million, down $5.7 million.
Briggs & Stratton Products Segment fiscal 2012 4Q net sales were $220.1 million, down $37.4 million or 14.5% from 4Q fiscal 2011. The decrease was primarily due to lower sales volumes of portable generators due to fewer spring storms in fiscal 2012, reduced sales of riding lawn and garden equipment due to drought conditions, and reduced sales volume in the international markets. This decrease is partially offset by higher shipments of pressure washers in fiscal 2012 and improved pricing.
Briggs & Stratton Engine Segment net sales for the fiscal year were $1,309,942, down from $1,399,532 in FY 2011. Adjusted engines gross profit for the FY 2012 was $264,580, from $319,584 in FY 2011.
Engines Segment fiscal 2012 4Q net sales were $322.5 million, down 17.8%, or $69.8 million lower, than 4Q 2011. This decrease in net sales was primarily driven by a 19% reduction in shipment volumes to lawn and garden OEMs in the North American and European markets resulting in part from drought conditions in North America and economic uncertainty in Europe leading to reduced consumer purchases of lawn and garden equipment.
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