Briggs & Stratton Corporation Reports Results For The Third Quarter And First Nine Months Of Fiscal 2013; Provides Revised

Briggs & Stratton Corporation Reports Results For The Third Quarter And First
            Nine Months Of Fiscal 2013; Provides Revised Guidance

PR Newswire

MILWAUKEE, April 19, 2013

MILWAUKEE, April 19, 2013 /PRNewswire/ -- Briggs & Stratton Corporation
(NYSE:BGG) today announced financial results for its third fiscal quarter and
first nine months ended March 31, 2013.

(Logo: http://photos.prnewswire.com/prnh/20120529/CG15020LOGO)

Highlights:

  oThird quarter fiscal 2013 consolidated net sales were $637.3 million, or
    11.5% lower than the third quarter of fiscal 2012.
  oFiscal 2013 third quarter consolidated net income excluding restructuring
    charges was $43.9 million, or $5.6 million lower than the adjusted net
    income of $49.5 million in the third quarter of fiscal 2012.
  oThe Company's restructuring program started in fiscal 2012 achieved
    pre-tax savings of $28.8 million during the first nine months of fiscal
    2013.
  oThe Company recorded pre-tax restructuring charges of $6.6 million ($5.4
    million after tax or $0.11 per diluted share) during the third quarter of
    fiscal 2013.

"We continue to see soft demand across international markets for engines and
products due to macroeconomic concerns weighing on the minds of consumers and
unfavorable weather conditions particularly in Australasia. Brazil continues
to be a bright spot for growing our international products business as our
Branco acquisition is performing as anticipated," commented Todd Teske,
Chairman, President and Chief Executive Officer of Briggs & Stratton
Corporation. "Here in the U.S., the spring lawn and garden season has been
delayed by at least a few weeks due to a prolonged cold and wet spring in many
parts of the country. This is significantly different from last year when we
had an unusually early start to spring with very warm weather across the
country. The drought that impacted our industry so significantly last season
appears to be improving east of the Mississippi River which is encouraging for
the upcoming season. Despite a later start to spring compared to last year, we
are optimistic that the U.S. market will be in line with our anticipated
growth projections of 4 to 6%."

Consolidated Results:

Consolidated net sales for the third quarter of fiscal 2013 were $637.3
million, a decrease of $82.8 million or 11.5% from the third quarter of fiscal
2012. Fiscal 2013 third quarter consolidated net income including
restructuring charges was $38.5 million, or $0.78 per diluted share. The third
quarter of fiscal 2012 consolidated net income including restructuring charges
was $39.9 million, or $0.80 per diluted share.Sales of engines and products
to international regions decreased by approximately $37 million compared to
last years' third quarter.The majority of the remaining decrease in sales in
the quarter was due to our decision to no longer sell lawn and garden products
to large mass retailers in the U.S. 

Included in consolidated net income for the third quarter of fiscal 2013 were
pre-tax charges of $6.6 million ($5.4 million after tax or $0.11 per diluted
share) related to previously announced restructuring actions. Included in
consolidated net income for the third quarter of fiscal 2012 were pre-tax
charges of $19.8 million ($9.6 million after tax or $0.19 per diluted share)
also related to the restructuring actions. After considering the impact of the
restructuring charges, the adjusted consolidated net income for the third
quarter of fiscal 2013 was $43.9 million or $0.89 per diluted share, which was
$5.6 million or $0.10 per diluted share lower compared to the third quarter
fiscal 2012 adjusted consolidated net income of $49.5 million or $0.99 per
diluted share.

For the first nine months of fiscal 2013, consolidated net sales were $1.385
billion, a decrease of $180.0 million or 11.5% when compared to the same
period a year ago. Consolidated net income for the first nine months of fiscal
2013 was $21.4 million or $0.44 per diluted share. Consolidated net income for
the first nine months of fiscal 2012 was $37.4 million or $0.74 per diluted
share.

Included in consolidated net income for the first nine months of fiscal 2013
were pre-tax charges of $18.4 million ($13.0 million after tax or $0.27 per
diluted share) related to the aforementioned restructuring actions. Included
in consolidated net income for the first nine months of fiscal 2012 were
pre-tax charges of $19.8 million ($9.6 million after tax or $0.19 per diluted
share) also related to the restructuring actions. After considering the impact
of the restructuring charges, adjusted consolidated net income for the first
nine months of fiscal 2013 was $34.4 million or $0.71 per diluted share, which
was a decrease of $12.6 million or $0.22 per diluted share compared to the
first nine months of fiscal 2012 adjusted consolidated net income of $47.0
million or $0.93 per diluted share.

Engines Segment:

                         Three Months Ended Fiscal  Nine Months Ended Fiscal
                         March                      March
(In Thousands)           2013            2012        2013           2012
 Engines Net Sales   $             $         $           $ 
                         451,921         498,009     890,631        987,486
 Engines Gross       $             $         $           $ 
Profit as Reported       100,981         100,320     181,980        186,555
Restructuring Charges    5,409           9,943       7,346          9,943
 Adjusted Engines    $             $         $           $  
Gross Profit             106,390         110,263     189,326        196,498
 Engines Gross       22.3%           20.1%       20.4%          18.9%
Profit % as Reported
 Adjusted Engines    23.5%           22.1%       21.3%          19.9%
Gross Profit %
 Engines Income      $            $         $           $  
from Operations as       57,058          55,051     48,574         51,875
Reported
Restructuring Charges    5,409           9,943       10,781         9,943
 Adjusted Engines    $            $        $           $  
Income from Operations   62,467          64,994      59,355         61,818
 Engines Income
from Operations % as     12.6%           11.1%       5.5%           5.3%
Reported
 Adjusted Engines
Income from Operations   13.8%           13.1%       6.7%           6.3%
%

Engines Segment fiscal 2013 third quarter net sales were $451.9 million, which
was $46.1 million or 9.3% lower than the third quarter of fiscal 2012. This
decrease in net sales was driven by reduced shipments of engines used
primarily on walk and ride equipment in European and North American markets as
OEM customers manage inventory levels due to a later start to warmer spring
weather. Net sales were also lower due to unfavorable foreign exchange of $5.4
million primarily due to a decrease in the value of the Euro in fiscal 2013.
These decreases in net sales were partially offset by the timing of generator
engine replenishment sales in the U.S. following the recent hurricane season.

The Engines Segment adjusted gross profit percentage for the third quarter of
2013 was 23.5%, which was 1.4% higher compared to the third quarter of fiscal
2012. The adjusted gross profit percentage was favorably impacted by 3.6% due
to lower manufacturing costs, partially offset by 1.2% due to unfavorable
foreign exchange and by 1% due to unfavorable absorption of fixed
manufacturing costs as a result of a 4% reduction in engines built. The lower
manufacturing costs resulted from $3.4 million of cost savings as a result of
restructuring actions initiated in fiscal 2012, lower material costs, and
start-up costs incurred in fiscal 2012 associated with launching our phase III
emissions compliant engines.

The Engines Segment engineering, selling, general and administrative expenses
were $43.9 million in the third quarter of fiscal 2013, a decrease of $1.3
million from the third quarter of fiscal 2012 primarily due to lower
compensation costs of $2.5 million as a result of the previously announced
global salaried employee reduction and reduced selling expenses, partially
offset by $0.6 million of increased pension expense compared to the same
period last year.

Engines Segment net sales for the first nine months of fiscal 2013 were $890.6
million, which was $96.9 million or 9.8% lower than the same period a year
ago. This decrease in net sales was primarily driven by reduced shipments of
engines used on snow thrower equipment in the North American market as well as
lower sales to OEM customers for the European and Australasian markets.
European markets were off considerably given macroeconomic issues and
unfavorable weather conditions. Australasia markets were off due to a
significant lack of rainfall in highly populated areas. In addition, sales
were lower in fiscal 2013 due to an unfavorable mix of engines sold that
reflected proportionately lower sales of large engines, and unfavorable
foreign exchange of $9.7 million primarily related to the Euro.

The Engines Segment adjusted gross profit percentage for the first nine months
of 2013 was 21.3%, which was 1.4% higher compared to the first nine months of
fiscal 2012. The adjusted gross profit percentage was favorably impacted by
3.4% due to lower manufacturing costs, partially offset by 1% due to
unfavorable foreign exchange and by 1% due to unfavorable absorption of fixed
manufacturing costs as a result of a 5% reduction in engines built. The lower
manufacturing costs resulted from $8.1 million of cost savings as a result of
restructuring actions initiated in fiscal 2012, lower material costs, and
start-up costs incurred in fiscal 2012 associated with launching our phase III
emissions compliant engines.

The Engines Segment engineering, selling, general and administrative expenses
were $130.0 million in the first nine months of fiscal 2013, or $4.7 million
lower compared to the first nine months of fiscal 2012 primarily due to lower
compensation costs of $7.4 million as a result of the previously announced
reduction of 10% of the global salaried workforce and reduced selling costs in
response to the softness in the global markets, partially offset by $2.7
million of increased pension expense compared to the same period last year.

Products Segment:

                         Three Months Ended Fiscal  Nine Months Ended Fiscal
                         March                      March
(In Thousands)           2013         2012           2013           2012
 Products Net Sales  $         $           $           $  
                         231,532      281,271       602,323       731,969
 Products Gross      $        $          $          $   
Profit as Reported       26,546      27,246        63,798        81,675
Restructuring Charges    1,236        9,821          7,624          9,821
 Adjusted Products   $        $          $          $   
Gross Profit             27,782      37,067        71,422        91,496
 Products Gross      11.5%        9.7%           10.6%          11.2%
Profit % as Reported
 Adjusted Products   12.0%        13.2%          11.9%          12.5%
Gross Profit %
 Products Income     $       $         $          $    
(Loss) from Operations    (199)     (1,153)        (11,787)       1,717
as Reported
Restructuring Charges    1,236        9,821          7,624          9,821
 Adjusted Products   $       $        $         $   
Income (Loss) from        1,037      8,668          (4,163)        11,538
Operations
 Products Income
(Loss) from Operations   -0.1%        -0.4%          -2.0%          0.2%
% as Reported
 Adjusted Products
Income (Loss) from       0.4%         3.1%           -0.7%          1.6%
Operations %



Products Segment fiscal 2013 third quarter net sales were $231.5 million, a
decrease of $49.7 million or 17.7% from the third quarter of fiscal 2012. The
decrease in net sales was primarily related to our decision to exit the sale
of lawn and garden equipment through national mass retailers. In addition,
sales of lawn and garden equipment and pressure washers decreased in North
America from last year as a result of a later start to the spring selling
season and decreased in international markets due to continued drought
conditions in parts of Australasia.The net sales decrease was partially
offset by net sales from the acquisition of Branco that were in line with
expectations. 

The Products Segment adjusted gross profit percentage for the third quarter of
2013 was 12.0%, which was 1.2% lower than the adjusted gross profit percentage
for the third quarter of fiscal 2012. The adjusted gross profit percentage
decreased 3.4% due to unfavorable absorption associated with a 35% decrease in
production in order to control inventory levels. This decrease was partially
offset by a benefit of 1.7% due to cost savings of $4.0 million as a result of
restructuring actions initiated in fiscal
2012.

The Products Segment fiscal 2013 third quarter engineering, selling, general
and administrative expenses were $26.8 million, a decrease of $1.7 million
from the third quarter of fiscal 2012. The decrease was attributable to lower
compensation costs of $0.7 million as a result of the previously announced
reduction of 10% of the global salaried workforce, $0.7 million of lower bad
debt expense, and reduced selling costs in response to the softness in the
global markets.

Products Segment net sales for the first nine months of fiscal 2013 were
$602.3 million, a decrease of $129.6 million or 17.7% from the same period a
year ago. The decrease in net sales was primarily due to lower sales volumes
of snow equipment due to significantly below average snowfall in North America
and reduced sales of lawn and garden equipment resulting from prolonged
drought conditions in the United States and Australasia. In addition, the
decrease in net sales was impacted by our decision to exit the sale of lawn
and garden equipment through national mass retailers.The decrease in net
sales was partially offset by higher shipments of portable and standby
generators in the North American market.

The Products Segment adjusted gross profit percentage for the first nine
months of 2013 was 11.9%, which was 0.6% lower compared to the adjusted gross
profit percentage of the first nine months of fiscal 2012. The adjusted gross
profit percentage decreased 2.6% due to unfavorable absorption associated with
a 43% decrease in production volume in order to control inventory levels. This
was partially offset by a 1.8% benefit due to cost savings of $11.1 million as
a result of restructuring actions. We reduced production volumes in the first
nine months of fiscal 2013 in order to manage inventory levels in response to
a decline in near-term market demand. The McDonough, Georgia manufacturing
facility was temporarily idled for four weeks in the second quarter of fiscal
2013 to reduce inventory levels in response to a decline in market demand for
snow and lawn and garden products and to re-tool the plant for new products to
be launched for the spring season.

The Products Segment engineering, selling, general and administrative expenses
were $75.6 million in the first nine months of fiscal 2013, a decrease of $4.4
million from the first nine months of fiscal 2012. The decrease was
attributable to lower compensation costs of $2.2 million as a result of the
previously announced global salaried employee reduction and reduced selling
expenses in response to the softness in the global markets.

Corporate Items:

Interest expense was lower compared to the prior year periods by $0.1 million
for both the third quarter and first nine months of fiscal 2013.

The effective tax rate for the third quarter and the first nine months of
fiscal 2013 was 27.6% and 27.5% respectively, compared to 20.4% and 13.4% for
the same respective periods last year. The tax rate for the third quarter of
fiscal 2013 is lower than the 35% statutory U.S. rate due to the reenactment
of the U.S. federal research and development and other credits in the amount
of $1.0 million and foreign tax credits in the amount of $0.5 million which
were partially offset by additional taxes of $1.0 million due to
non-deductible expenses related to the Ostrava, Czech Republic plant closing.
The effective tax rate for the first nine months of fiscal 2013 was lower than
the 35% statutory U.S. rate due to the aforementioned credits and
non-deductible expenses and non-deductible acquisition costs increasing the
tax expense by $0.5 million. The effective rate for the third quarter of
fiscal 2012 was lower as a result of recording a net benefit of $3.3 million
related to Ostrava plant restructuring charges incurred during that quarter.
The effective rate for the first nine months of fiscal 2012 was impacted by
the aforementioned restructuring charges and a net benefit of $5.0 million
related to the settlement of U.S. audits and the expiration of a non-U.S.
statute of limitation period during fiscal 2012.

Financial Position:

Net debt at March 31, 2013 was $239.9 million (total debt of $262.5 million
less $22.6 million of cash), or $17.7 million lower from the $257.6 million
(total debt of $274.0 million less $16.4 million of cash) at April 1, 2012.
Cash flows used in operating activities for the first nine months of fiscal
2013 were $73.8 million compared to $166.7 million in the first nine months of
fiscal 2012. The improvement in operating cash flows was primarily related to
lower working capital needs in the first nine months of fiscal 2013 associated
with less of an increase in accounts receivable and inventory compared to the
same period last year.

Restructuring:

The Company's execution of its previously announced restructuring actions
remains largely on schedule. In the third quarter of fiscal 2013, the Company
entered into an agreement to sell the Ostrava, Czech Republic manufacturing
facility. The transaction closed early in the fourth fiscal quarter. The
Company continues to make progress towards finalizing its exit from the
Newbern, Tennessee manufacturing facility and the move of horizontal engine
manufacturing from its Auburn, Alabama plant to China. As noted previously,
pre-tax restructuring costs for the third quarter and first nine months of
fiscal 2013 were $6.6 million and $18.4 million, respectively. The total
estimated pre-tax expense related to restructuring actions in fiscal 2013 is
expected to be $20 million to $22 million. In addition, the Company continues
to anticipate pre-tax savings associated with restructuring actions of $32
million to $37 million in fiscal 2013 and $40 million to $45 million in fiscal
2014 as compared to 2012.

Share Repurchase Program:

On August10, 2011, the Board of Directors of the Company authorized up to $50
million in funds for use in a common share repurchase program with an
expiration of June30, 2013. On August 8, 2012 the Board of Directors of the
Company authorized up to an additional $50 million in funds associated with
the common share repurchase program and an extension of the expiration date to
June 30, 2014. The common share repurchase program authorizes the purchase of
shares of the Company's common stock on the open market or in private
transactions from time to time, depending on market conditions and certain
governing loan covenants. During the first nine months of fiscal 2013, the
Company repurchased approximately 1.2 million shares on the open market at an
average price of $18.96 per share.

Revised Outlook:

Due to continued weakness in consumer spending for outdoor power equipment in
our international markets and a significantly reduced market for snow thrower
products in the U.S. and Europe, we are revising our fiscal 2013 net income
projections to be in a range of $56 million to $65 million or $1.16 to $1.33
per diluted share. These net income projections include the results of the
Branco acquisition closed on December 7, 2012 and are prior to the impact of
any additional share repurchases and costs related to our announced
restructuring programs. The market growth estimates of 4% to 6% for the U.S.
lawn and garden market remain unchanged; however, the lower end of the net
income projections contemplate a later start to the spring lawn and garden
season in the U.S. which could potentially have the impact of extending the
season past fiscal 2013 at the end of June and into the first quarter of
fiscal 2014. The Company previously indicated that it would exit sales of lawn
and garden products to national mass retailers. The estimated impact of
exiting this business in fiscal 2013 is approximately $100 million of reduced
sales. Although sales in the first nine months of fiscal 2013 were favorably
impacted by sales of generators in response to power outages during Hurricanes
Isaac and Sandy, drought conditions and a lack of meaningful snowfall in a
significant portion of the U.S. prior to February and a reduction in sales
demand from many of our international markets have continued to negatively
impact shipment volumes, offsetting the storm benefit. Our fiscal 2013
consolidated net sales are projected to be in a range of $1.95 billion to $2.0
billion. Operating income margins are expected to improve over fiscal 2012
and be in a range of 4.8% to 5.3% and reflect the positive impacts of the
restructuring programs announced during fiscal 2012. Interest expense and
other income are estimated to be approximately $18 million and $7 million,
respectively. The effective tax rate is projected to be in a range of 30% to
33%, and capital expenditures are projected to be approximately $45 million to
$50 million.

Conference Call Information:

The Company will host a conference call today at 10:00 AM (ET) to review this
information. A live webcast of the conference call will be available on our
corporate website: http://www.briggsandstratton.com/shareholders. Also
available is a dial-in number to access the call real-time at (866) 804-3545.
A replay will be offered beginning approximately two hours after the call ends
and will be available for one week. Dial (888) 266-2081 to access the replay.
The pass code will be 1596430.

Safe Harbor Statement:

This release contains certain forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
those projected in the forward-looking statements. The words "anticipate",
"believe", "estimate", "expect", "forecast", "intend", "plan", "project", and
similar expressions are intended to identify forward-looking statements. The
forward-looking statements are based on the Company's current views and
assumptions and involve risks and uncertainties that include, among other
things, the ability to successfully forecast demand for our products; changes
in interest rates and foreign exchange rates; the effects of weather on the
purchasing patterns of consumers and original equipment manufacturers (OEMs);
actions of engine manufacturers and OEMs with whom we compete; changes in laws
and regulations; changes in customer and OEM demand; changes in prices of raw
materials and parts that we purchase; changes in domestic and foreign economic
conditions; the ability to bring new productive capacity on line efficiently
and with good quality; outcomes of legal proceedings and claims; and other
factors disclosed from time to time in our SEC filings or otherwise, including
the factors discussed in Item1A, Risk Factors, of the Company's Annual Report
on Form 10-K and in its periodic reports on Form 10-Q.

About Briggs & Stratton Corporation:

Briggs & Stratton Corporation, headquartered in Milwaukee, Wisconsin, is the
world's largest producer of gasoline engines for outdoor power equipment. Its
wholly owned subsidiaries include North America's number one manufacturer of
portable generators and pressure washers, and it is a leading designer,
manufacturer and marketer of lawn and garden and turf care through its
Simplicity®, Snapper®, Ferris®, Murray®, Branco® and Victa® brands. Briggs &
Stratton products are designed, manufactured, marketed and serviced in over
100 countries on six continents.

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations for the Fiscal Periods Ended March
(In Thousands, except per share data)
(Unaudited)
                             Three Months Ended     Nine Months Ended Fiscal
                             Fiscal March           March
                             2013        2012        2013          2012
NET SALES                    $          $          $            $ 
                             637,259     720,097     1,385,345     1,565,341
COST OF GOODS SOLD           503,826     573,221     1,122,804     1,278,531
RESTRUCTURING CHARGES        6,645       19,764      14,970        19,764
Gross Profit                126,788     127,112     247,571       267,046
ENGINEERING, SELLING,
GENERAL ANDADMINISTRATIVE   70,668      73,668      205,556       214,638
EXPENSES
RESTRUCTURING CHARGES        -           -           3,435         -
Income from Operations       56,120      53,444      38,580        52,408
INTEREST EXPENSE             (4,717)     (4,811)     (13,802)      (13,945)
OTHER INCOME                 1,806       1,566       4,660         4,749
Income before Income Taxes   53,209      50,199      29,438        43,212
PROVISION FOR INCOME TAXES   14,693      10,262      8,084         5,798
Net Income                   $  38,516  $  39,937  $           $  
                                                     21,354       37,414
Weighted Average Shares      47,336      48,882      47,126        49,323
Outstanding
BASIC EARNINGS PER SHARE     $        $        $        $     
                             0.79        0.82        0.44          0.75
Diluted Average Shares       47,709      49,857      47,291        50,264
Outstanding
DILUTED EARNINGS PER SHARE   $        $        $        $     
                             0.78        0.80        0.44          0.74



Segment Information
(In Thousands)
(Unaudited)
                        Three Months Ended Fiscal  Nine Months Ended Fiscal
                        March                      March
                        2013           2012         2013          2012
NET SALES:
Engines                 $ 451,921      $ 498,009    $  890,631  $  987,486
Products                231,532        281,271      602,323       731,969
Inter-Segment           (46,194)       (59,183)     (107,609)     (154,114)
Eliminations
Total *                 $ 637,259      $ 720,097    $1,385,345    $1,565,341
* International sales
based on product        $ 166,722      $ 203,276    $  453,335  $  529,709
shipment destination
included in net sales
GROSS PROFIT:
Engines                 $ 100,981      $ 100,320    $  181,980  $  186,555
Products                26,546         27,246       63,798        81,675
Inter-Segment           (739)          (454)        1,793         (1,184)
Eliminations
Total                   $ 126,788      $ 127,112    $  247,571  $  267,046
INCOME (LOSS) FROM
OPERATIONS:
Engines                 $  57,058     $  55,051   $           $  
                                                    48,574       51,875
Products                (199)          (1,153)      (11,787)      1,717
Inter-Segment           (739)          (454)        1,793         (1,184)
Eliminations
Total                   $  56,120     $  53,444   $           $  
                                                    38,580       52,408

Non-GAAP Financial Measures

Briggs& Stratton prepares its financial statements using Generally Accepted
Accounting Principles (GAAP). When a company discloses material information
containing non-GAAP financial measures, SEC regulations require that the
disclosure include a presentation of the most directly comparable GAAP measure
and a reconciliation of the GAAP and non-GAAP financial measure. Management's
inclusion of non-GAAP financial measures in this release is intended to
supplement, not replace, the presentation of the financial results in
accordance with GAAP. Management believes that the non-GAAP financial measures
in this release aid investors in understanding the magnitude of the change in
earnings between years due to recurring operations. The following table is a
reconciliation of the non-GAAP financial measures:

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Net Income & Diluted Earnings Per Share for the Fiscal Periods Ended
March
(In Thousands, except per share data)
(Unaudited)
                                 Three Months Ended      Nine Months Ended
                                 Fiscal March            Fiscal March
                                 2013          2012       2013       2012
Net Income                       $  38,516   $ 39,937  $ 21,354  $  
                                                                     37,414
  Tax effected charges to
  reported net income:
          Restructuring          5,369         9,590      13,013     9,590
          Charges^1
Adjusted Net Income              $  43,885   $ 49,527  $ 34,367  $  
                                                                     47,004
Diluted Earnings Per Share       $          $        $        $    
                                 0.78         0.80      0.44      0.74
  Tax effected charges to
  reported diluted earnings per
  share:
          Restructuring          0.11          0.19       0.27       0.19
          Charges^1
Adjusted Diluted Earnings Per    $          $        $        $    
Share                            0.89         0.99      0.71      0.93

^1 For the third quarter and first nine months of fiscal 2013, represents
   charges of $6,645 (net of $1,276 of taxes) and $18,405 (net of $5,392 of
  taxes), respectively. For the third quarter and first nine months of fiscal
   2012, represents charges $19,764 (net of $10,174 of taxes).

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Segment Gross Profit for the Fiscal Periods Ended March
(In Thousands)
(Unaudited)
                         Three Months Ended Fiscal  Nine Months Ended Fiscal
                         March                      March
                         2013         2012           2013           2012
 GROSS PROFIT:
 Engines
 Gross Profit            $        $          $          $   
                         100,981     100,320       181,980        186,555
 Restructuring Charges   5,409        9,943          7,346          9,943
 Adjusted Engines Gross  $        $          $          $   
 Profit                  106,390     110,263       189,326        196,498
 Products
 Gross Profit            26,546       27,246         63,798         81,675
 Restructuring Charges   1,236        9,821          7,624          9,821
 Adjusted Products       $       $        $         $    
 Gross Profit            27,782      37,067         71,422         91,496
 Inter-Segment           (739)        (454)          1,793          (1,184)
 Eliminations
 Adjusted Gross Profit   $        $          $          $   
                         133,433     146,876       262,541        286,810

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Segment Income from Operations for the Fiscal Periods Ended March
(In Thousands)
(Unaudited)
                           Three Months Ended       Nine Months Ended Fiscal
                           Fiscal March             March
                           2013         2012         2013          2012
INCOME FROM OPERATIONS:
 Engines
  Income from          $       $       $        $     
 Operations                  57,058   55,051      48,574       51,875
 Restructuring Charges     5,409        9,943        10,781        9,943
  Adjusted Engines     $       $       $        $     
 Income from Operations      62,467   64,994      59,355       61,818
 Products
  Income (Loss) from   (199)        (1,153)      (11,787)      1,717
 Operations
 Restructuring Charges     1,236        9,821        7,624         9,821
  Adjusted Products    $       $       $        $     
 Income (Loss) from           1,037   8,668     (4,163)      11,538
 Operations
 Inter-Segment             (739)        (454)        1,793         (1,184)
 Eliminations
 Adjusted Income from      $       $       $        $     
 Operations                  62,765   73,208      56,985       72,172

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets as of the End of Fiscal March
(In Thousands)
(Unaudited)
CURRENT ASSETS:                               2013            2012
Cash and Cash Equivalents                     $    22,568  $    16,445
Accounts Receivable, Net                      403,320         485,811
Inventories                                   463,448         480,202
Deferred Income Tax Asset                     46,212          42,924
Assets Held For Sale                          5,347           10,846
Prepaid Expenses and Other Current Assets     19,799          24,551
Total Current Assets                          960,694         1,060,779
OTHER ASSETS:
Goodwill                                      220,817         205,354
Investments                                   19,891          21,583
Debt Issuance Costs                           4,957           5,975
Other Intangible Assets, Net                  110,006         87,677
Deferred Income Tax Asset                     60,504          21,827
Other Long-Term Assets, Net                   9,085           9,162
Total Other Assets                            425,260         351,578
PLANT AND EQUIPMENT:
At Cost                                       1,012,622       1,033,202
Less - Accumulated Depreciation               729,933         724,709
Plant and Equipment, Net                      282,689         308,493
                                              $ 1,668,643    $ 1,720,850
CURRENT LIABILITIES:
Accounts Payable                              $   182,287   $   224,045
Short-Term Debt                               2,100           3,000
Accrued Liabilities                           170,175         155,459
Total Current Liabilities                     354,562         382,504
OTHER LIABILITIES:
Accrued Pension Cost                          232,869         160,804
Accrued Employee Benefits                     23,494          24,321
Accrued Postretirement Health Care Obligation 84,843          108,054
Other Long-Term Liabilities                   30,352          30,520
Long-Term Debt                                260,350         271,000
Total Other Liabilities                       631,908         594,699
SHAREHOLDERS' INVESTMENT:
Common Stock                                  579             579
Additional Paid-In Capital                    77,757          80,907
Retained Earnings                             1,103,807       1,113,665
Accumulated Other Comprehensive Loss          (279,081)       (240,658)
Treasury Stock, at Cost                       (220,889)       (210,846)
Total Shareholders' Investment                682,173         743,647
                                              $ 1,668,643    $ 1,720,850



BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
                                             Nine Months Ended Fiscal March
CASH FLOWS FROM OPERATING ACTIVITIES:        2013              2012
Net Income                                   $     21,354  $       
                                                               37,414
Adjustments to Reconcile Net Income to Net
Cash Used in Operating Activities:
Depreciation and Amortization                41,234            47,590
Stock Compensation Expense                   5,244             4,497
Loss on Disposition of Plant and Equipment   293               81
Provision (Benefit) for Deferred Income      (16,866)          2,820
Taxes
Earnings of Unconsolidated Affiliates        (3,011)           (3,519)
Dividends Received from Unconsolidated       4,636             4,029
Affiliates
Cash Contributions to Pension Plan           (29,363)          (24,134)
Non-Cash Restructuring Charges               11,930            14,263
Changes in Operating Assets and Liabilities:
Accounts Receivable                          (167,435)         (237,800)
Inventories                                  (19,873)          (56,411)
Other Current Assets                         10,571            18,349
Accounts Payable and Accrued Liabilities     70,273            33,605
Other, Net                                   (2,766)           (7,471)
 Net Cash Used in Operating Activities     (73,779)          (166,687)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Plant and Equipment             (26,301)          (31,815)
Proceeds Received on Disposition of Plant    6,705             175
and Equipment
Payments Made for Acquisitions, Net of Cash  (59,627)          (2,673)
Acquired
 Net Cash Used in Investing Activities     (79,223)          (34,313)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on Short-Term Debt                (900)             -
Net Borrowings on Revolver                   35,350            46,000
Debt Issuance Costs                          -                 (2,007)
Treasury Stock Purchases                     (23,057)          (22,689)
Stock Option Exercise Proceeds and Tax       19,613            235
Benefits
Cash Dividends Paid                          (11,499)          (11,041)
 Net Cash Provided by Financing Activities 19,507            10,498
EFFECT OF EXCHANGE RATE CHANGES              (12)              (2,692)
NET DECREASE IN CASH AND CASH EQUIVALENTS    (133,507)         (193,194)
CASH AND CASH EQUIVALENTS, Beginning         156,075           209,639
CASH AND CASH EQUIVALENTS, Ending            $     22,568  $       
                                                               16,445

SOURCE Briggs & Stratton Corporation

Website: http://www.briggsandstratton.com
Contact: Investor Relations Contact: David J. Rodgers, Senior VP and Chief
Financial Officer, (414) 259-5333
 
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