Briggs & Stratton (BGG) - Get Report on Thursday lost 40% of its market value as the maker of engines for outdoor equipment reported weaker-than-expected fiscal-fourth-quarter results and said it would close a plant.
The stock was trading at $5 a share.
For the quarter ended June 30, the Milwaukee company reported a fourth-quarter loss of 45 cents a share, wider than the deficit of 29 cents a share reported a year earlier.
On an adjusted basis, the company reported a loss of 36 cents a share compared with net income of 47 cents in the fiscal 2018 fourth quarter. The latest quarter included a non-cash tax-related charge of 12 cents a share.
Sales fell 5.9% to $472 million from $501.7 million.
Analysts surveyed by FactSet were expecting the company to post adjusted profit of 45 cents a share on revenue of $519.9 million.
In the latest quarter, Briggs & Stratton said in a statement that shipments fell short of expectations because of an unusually wet and cool spring in North America, "compounded by near-term market disruptions caused by channel-partner transitions."
The company now expects fiscal 2020 adjusted net income of 20 cents to 40 cents a share, compared with a prior estimate of $1.30.
Briggs & Stratton now sees the next fiscal year's sales ranging $1.91 billion to $1.97 billion, compared with its previous expectation of $2.01 billion.
The FactSet-derived survey had been looking for adjusted earnings of $1.22 a share on sales of $1.99 billion.
The company said it would close its Murray, Ky., facility by fall 2020 to align production capacity with expected need. It will consolidate production of small vertical-shaft engines at its Poplar Bluff, Mo., plant.
The market for that product -- used largely in walk-behind mowers -- has been relatively stable but has not grown over the past several years, for reasons including "a difficult housing market driven by the lack of affordable single-family homes in the U.S.," Briggs & Stratton said.
The company said that the Murray plant's employees would have the opportunity to relocate to another facility.
Charges related to the consolidation are estimated at $30 million to $35 million over fiscal years 2020 and 2021, the company said.