Briggs & Stratton Improves Formula for Their Proprietary 5-In-1 Advanced Formula Fuel Treatment & Stabilizer to Include Five Times More Detergent Than the Previous Formula
May 6 15
Briggs & Stratton have improved the formula for their proprietary 5-in-1 Advanced Formula Fuel Treatment & Stabilizer to include five times more detergent than the previous formula. The added detergent works harder to clean the engine while it runs, preventing gumming and varnishing within the fuel system. In addition to the improved detergent, the super-concentrated Briggs & Stratton's Advanced Formula Fuel Treatment & Stabilizer still contains: Triple anti-oxidants to stabilize fuel; Corrosion inhibitors and metal de-activators to protect the metal engine components from rust and corrosion; and a powerful detergent that cleans while the engine runs, preventing gumming and varnishing within the fuel system.
Briggs & Stratton Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended March 29, 2015; Revised Earnings Guidance for the Full Year of Fiscal 2015
Apr 23 15
Briggs & Stratton Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended March 29, 2015. For the quarter, consolidated reported and adjusted net sales were $619.0 million against $628.4 million last year. The strengthening of the US dollar, predominantly against the Australia dollar, Brazilian real and Euro, led to an unfavorable foreign exchange impact on sales of $6.7 million. In addition, net sales were unfavorably impacted by reduced generator sales and unfavorable mix of engines shipped. Net sales benefited by higher sales in international markets, particularly Australia and Europe, and the results of the Allmand acquisition, which closed in August of this fiscal year. Income from operations was $45.4 million against $55.4 million last year. Income before income taxes was $42.5 million against $53 million last year. Net income, which includes restructuring expenses and acquisition-related charges, was $33.9 million or $0.75 per basic and diluted share. The third quarter of fiscal 2014 consolidated net income, which included restructuring charges, was $39.2 million or $0.82 per basic and diluted share. The fiscal 2015 third quarter consolidated net income includes a tax benefit of $4.7 million related to incremental research and development tax credits, partially offset by an unfavorable foreign exchange impact of approximately $3.4 million. Adjusted income from operations was $53.6 million against $54.6 million last year. Adjusted income before income taxes was $50.7 million against $52.2 million last year. Adjusted net income was $39.2 million or $0.86 per basic and diluted share against $38.7 million or $0.81 per basic and diluted share last year.
For the first nine months of fiscal 2015, reported and adjusted net sales were $1.4 billion against $1.4 billion last year. The decrease in net sales is due to reduced shipment volumes of engines to OEM customers in North America due to slightly elevated channel inventories, lower generator sales from a lack of major power outages, and an unfavorable foreign exchange impact of approximately $14.0 million, predominantly due to the weakening of the Euro, Australian dollar, and Brazilian real. The decrease in Net Sales were partially offset by higher sales in Europe and Australia, higher sales of commercial lawn and garden equipment and pressure washers in North America, and the results of the Allmand acquisition. Income from operations was $35.0 million against $35.6 million last year. Income before income taxes was $27.1 million against $27.9 million last year. Net income, which includes $24.9 million of restructuring expenses and acquisition-related charges, was $25.6 million or $0.56 per basic and diluted share. The first nine months of fiscal 2014 consolidated net income, which included $5.1 million of restructuring charges, was $20.5 million or $0.43 per basic and diluted share. The fiscal 2015 nine months consolidated net income includes an unfavorable foreign exchange impact of approximately $5.4 million, partially offset by a tax benefit of $5.0 million related to incremental research and development tax credits. Net cash used in operating activities was $52.1 million against $14.0 million last year. Additions to plant and equipment were $44.2 million against $29.5 million last year. Adjusted income from operations was $59.9 million against $40.7 million last year. Adjusted income before income taxes was $52.0 million against $33.1 million last year. Adjusted net income was $41.8 million or $0.91 per basic and diluted share against $24.4 million or $0.51 per basic and diluted share last year. Net debt at March 29, 2015 was $235.4 million or $117.6 million higher than the $117.8 million at March 30, 2014. 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.
The company increased estimated earnings for fiscal 2015 to take into consideration the operating results and additional share repurchases during the first three fiscal quarters as well as the tax benefit of $4.7 million recognized in the third quarter for research and development tax credits. The company has also considered the continued strengthening of the U.S. dollar relative to many currencies it sells in outside of the United States. The company now projects fiscal 2015 full year net income to be in a range of $57 million to $64 million or $1.27 per diluted share to $1.43 per diluted share prior to the impact of acquisition expenses, additional share repurchases, or costs related to announced restructuring actions, from previous guidance of $1.20 per diluted share to $1.35 per diluted share. The company now projects consolidated net sales for fiscal 2015 to be in a range of $1.90 billion to $1.95 billion. The decrease in the sales guidance is primarily related to slowing growth rates in sales of product in international regions as well as the impact of the strengthening U.S. dollar. Operating margins are expected to be in a range of 4.9% to 5.2%, an improvement over fiscal 2014 reflecting the strategic actions taken to focus on higher margin products and the positive impacts of the restructuring actions. Interest expense and other income are estimated to be approximately $19 million and $7 million, respectively. The effective tax rate excluding restructuring charges is projected to be in a range of 25% to 26% and capital expenditures are projected to be approximately $60 million to $65 million.
Briggs & Stratton Corporation Declares Quarterly Dividend Payable on June 26, 2015
Apr 23 15
At its regular quarterly meeting held on April 23, 2015, the Board of Directors of Briggs & Stratton Corporation declared a quarterly dividend of $0.125 per share on the common stock of the corporation. The dividend is payable June 26, 2015 to shareholders of record at the close of business June 12, 2015.