Briggs & Stratton Corporation Provides Market Update And Revises Fiscal 2013 Guidance

 Briggs & Stratton Corporation Provides Market Update And Revises Fiscal 2013

PR Newswire

MILWAUKEE, July 26, 2013

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.


  oConsolidated net sales for the fourth quarter and fiscal year 2013 are
    expected to be approximately $475 million and $1.86 billion, respectively
  oProduction levels lowered in response to OEM production schedules to
    control inventories
  oU.S. sales in line with industry estimates for engines and products;
    Europe market softness continues
  oEngine market share in line with original guidance
  oExcluding 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
  oOutlook 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."

Engines Segment:

  oFourth fiscal quarter 2013 Engines segment net sales are expected to be
    approximately $300 million
  oTotal engines shipped in the quarter were approximately 1.9 million units
    compared to approximately 2.1 million units in the prior year
  oProduction totaled approximately 1.6 million units in the quarter compared
    to approximately 2.0 million in the prior year
  oEnding engine unit inventories were approximately 1.4 million compared to
    approximately 1.3 million units last year

Through the end of June 2013, the Company estimates that the retail market for
walk and riding mowing equipment has decreased by approximately 3-5% compared
to the last season. The lower retail sales due to a late spring in the U.S.
and Europe have not yet recovered in the current season. Estimates of U.S.
industry shipments to retailers of walk mowers are consistent with last year
through June while shipments of riding mowers has increased by approximately
3%. The Company expects that by the end of the current season, retail sales
of mowing equipment will be flat to slightly up for the season. Certain
equipment OEMs have reduced inventories compared to the prior year in response
to lower than anticipated retail sales.

Products Segment:

  oFourth fiscal quarter 2013 Products segment net sales are expected to be
    approximately $203 million
  oManufacturing throughput reduced 15% in the quarter compared to the prior
    year in order to control inventories
  oDomestic product inventories decreased by approximately $50 million
    compared to the prior year
  oDealer inventories are below average of last several years

The majority of the decrease in net sales compared to the prior year is due to
our previously announced decision to exit the sale of lawn and garden
equipment to U.S. mass market retailers. This was partially offset by higher
sales of lawn and garden equipment to our dealers in the U.S. and increased
sales in Brazil due to our acquisition of Branco in December of 2012.
Production levels in the products plants were also reduced to lower
inventories resulting in lower absorption of fixed manufacturing costs in the
near term.

Financial Position:

Net debt at June 30, 2013 is anticipated to be approximately $37 million.
Expected cash flows from operations for fiscal 2013 is approximately $160

The results discussed above are preliminary and therefore are subject to the
completion of fiscal year end closing and auditing procedures including, but
not limited to, the evaluation of goodwill and intangibles for potential

Conference Call Information:

There is no conference call scheduled in association with this announcement.

The Company is scheduled to announce its full results for the fourth fiscal
quarter of 2013 and host its regularly quarterly conference call on August 15,
2013 at 10:00 AM (ET). A live webcast of the conference call will be
available on our corporate website: 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 1596431.

Non-GAAP Financial Measures

Briggs& Stratton prepares its financial statements using Generally Accepted
Accounting Principles (GAAP). This press release contains non-GAAP financial
measures within the meaning of Regulation G promulgated by the SEC, including
the revised guidance range for expected diluted earnings per share which
excludes estimated charges related to restructuring actions, legal settlements
and other non-cash charges. A "non-GAAP financial measure" is generally
defined as a numerical measure of a company's historical or future performance
that excludes or includes amounts, or is subject to adjustments, so as to be
different from the most directly comparable measure calculated and presented
in accordance with generally accepted accounting principles ("GAAP"). The
revised guidance range for expected diluted earnings per share for fiscal
2013, excluding estimated charges related to restructuring, legal settlements
and other non-cash charges is a financial measure that is not defined by GAAP
and should be viewed in addition to, and not in lieu of diluted earnings per
share and other financial measures on a GAAP basis. Briggs & Stratton
Corporation management believes that these non-GAAP financial measures, when
considered together with the GAAP financial measures, provide information that
is useful to investors in understanding period-over-period operating results
separate and apart from items that may, or could, have a disproportionately
positive or negative impact on results in any particular period. Management
also believes that these non-GAAP financial measures enhance the ability of
investors to analyze our business trends and to understand our performance. In
addition, we may utilize non-GAAP financial measures as a guide in our
forecasting, budgeting and long-term planning process. Non-GAAP financial
measures should be considered in addition to, and not as a substitute for, or
superior to, financial measures presented in accordance with GAAP.

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.

SOURCE Briggs & Stratton Corporation

Contact: David J. Rodgers, Senior VP and Chief Financial Officer, (414)
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