Briggs & Stratton Corporation Introduces Lithium-Ion Electric Starting Technology to Gas-Powered Engines
Feb 25 15
Briggs & Stratton Corporation introduced lithium-ion electric starting technology to gas-powered engines. Available now, exclusively on Cub Cadet lawn mowers at Cub Cadet independent dealers and Costco Wholesale, InStart lithium-ion starting technology, combined with Briggs & Stratton's ReadyStart Starting System, requires no priming, no choking and no rope to pull. InStart also offers quick, reliable charging. One hour is all it takes to fully charge the lithium-ion battery, which provides up to 75 starts, enough starts for the entire mowing season for many homeowners. With the rapid recharge, ten minutes of charging can provide up to 20 starts.
Briggs & Stratton Corp. Announces Unaudited Consolidated Financial Results for the Second Quarter and Six Months Ended December 28, 2014; Revises Earnings Guidance for the Full Year of 2015
Jan 21 15
Briggs & Stratton Corp. announced unaudited consolidated financial results for the second quarter and six months ended December 28, 2014. For the quarter, the company reported net sales of $444,287,000 against $416,592,000 a year ago. The increase in Net Sales were partially offset by reduced shipment volumes of small engines used on walk mowers in North America due to elevated channel inventories following this past season and lower generator sales due to adequate channel inventories and no major storm activity. Income from operations was $13,315,000 against $5,164,000 a year ago. Income before income taxes was $10,477,000 against $2,321,000 a year ago. Net income was $6,943,000 against $702,000 a year ago. Basic and basic and diluted earnings per share were $0.15 against $0.01 a year ago. Adjusted income from operations was $20,925,000 against $7,482,000 a year ago. Adjusted income before income taxes was $18,087,000 against $4,639,000 a year ago. Adjusted net income was $11,889,000 against $2,298,000 a year ago. Adjusted basic and basic and diluted earnings per share were $0.26 against $0.05 a year ago.
For the six months, the company reported net sales of $736,916,000 against $733,896,000 a year ago. This increase in Net Sales were partially offset by reduced shipment volumes of small engines used on walk mowers in North America and lower sales of generators. Loss from operations was $10,402,000 against $19,767,000 a year ago. Loss before income taxes was $15,385,000 against $25,027,000 a year ago. Net loss was $8,336,000 against $18,647,000 a year ago. Basic and basic and diluted loss per share was $0.19 against $0.41 a year ago. Adjusted net income was $2,559,000 against adjusted net loss of $14,200,000 a year ago. Adjusted basic and basic and diluted income per share was $0.05 against adjusted net loss per share of $0.31 a year ago. Net cash used in operating activities was $114,032,000 against $45,248,000 a year ago. Additions to plant and equipment were $23,289,000 against $18,063,000 a year ago. Adjusted income from operations was $6,359,000 against adjusted net loss from operations of $13,864,000 a year ago. Adjusted income before income taxes was $1,376,000 against adjusted loss before income taxes of $19,124,000 a year ago. Net debt at December 28, 2014 was $260.3 million. The increase in operating cash flows used was primarily related to higher inventory levels to facilitate the upcoming closure of the McDonough plant and the introduction of a new engine line in fiscal 2015, partially offset by improvements in managing outstanding accounts receivable.
The company is adjusting its full year guidance to increase the lower end of its earnings guidance. The company now projects its fiscal 2015 full year net income to be in a range of $55 million to $63 million or $1.20 to $1.35 per diluted share prior to the impact of acquisition expenses, additional share repurchases, or costs related to announced restructuring actions. The company expects consolidated net sales for fiscal 2015 to be in a range of $1.94 billion to $2.0 billion which contemplates the retail market for U.S. lawn and garden products will increase an estimated 1-4% in the next season. The company is also increasing its estimated operating income margins for fiscal 2015. Operating margins are expected to be in a range of 4.7% to 5.2%, an improvement over fiscal 2014 reflecting the positive impacts of the restructuring actions, particularly in the last quarter of the fiscal year. Interest expense and other income are estimated to be approximately $19 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 $60 million to $65 million.