MILWAUKEE, July 26, 2013 /PRNewswire/ -- Briggs & Stratton Corporation (NYSE: BGG) today announced that it expects to report net sales and earnings below the guidance provided for fiscal 2013.
- Consolidated net sales for the fourth quarter and fiscal year 2013 are expected to be approximately $475 million and $1.86 billion, respectively
- Production levels lowered in response to OEM production schedules to control inventories
- U.S. sales in line with industry estimates for engines and products; Europe market softness continues
- Engine market share in line with original guidance
- Excluding charges related to restructuring actions, legal settlements, and other non-cash charges, revised fourth fiscal quarter and fiscal 2013 adjusted diluted earnings per share is estimated to be approximately $0.17 to $0.21 per share and $0.88 to $0.92 per share, respectively
- Outlook for an improved fiscal 2014 on a strengthening U.S. lawn and garden market, lower channel inventories, and continued expansion and growth in certain international markets; European outlook remains cautious
"An extremely slow start to the spring lawn and garden season and a cautious approach to managing inventories after last year's drought has impacted the U.S. and European markets through the end of June," commented Todd J. Teske, Chairman, President and CEO of Briggs & Stratton Corporation. "In response to the lower retail sales, almost all channel participants including mass retailers, dealers, and equipment OEMs have been cautiously managing inventories and therefore have been slow to re-order for the current season. Equipment OEMs have reduced production levels compared to last year and thus we reduced our engine production in the quarter negatively impacting absorption of plant operating costs in the near term," continued Teske. "On a positive note, we have seen the retail market strengthening in May and June and continuing into July as we compare to last year's drought-impacted summer season and we believe inventory levels at our dealers are in great shape heading into our next fiscal year."
- Fourth fiscal quarter 2013 Engines segment net sales are expected to be approximately $300 million
- Total engines shipped in the quarter were approximately 1.9 million units compared to approximately 2.1 million units in the prior year
- Production totaled approximately 1.6 million units in the quarter compared to approximately 2.0 million in the prior year
- Ending engine unit inventories were approximately 1.4 million compared to approximately 1.3 million units last year
- Fourth fiscal quarter 2013 Products segment net sales are expected to be approximately $203 million
- Manufacturing throughput reduced 15% in the quarter compared to the prior year in order to control inventories
- Domestic product inventories decreased by approximately $50 million compared to the prior year
- Dealer inventories are below average of last several years