BRIGGS & STRATTON REPORTS RESULTS FOR 1Q FY18
Nov. 5, 2017
Source: Briggs & Stratton news release
Milwaukee, Wisconsin - Briggs & Stratton Corp. (NYSE: BGG) announces financial results for its first fiscal quarter ended October 1, 2017.
Fiscal first quarter net sales were $329 million, an increase of $42 million, or 14.7%, from $287 million for the prior year, due to both higher shipments of generators related to hurricane activity and continued favorable momentum in sales of engines and products designed for commercial markets.
Quarterly gross profit margin of 20.1% (GAAP) and adjusted gross profit margin of 20.5% increased from a gross profit margin of 18.3% last year primarily from the favorable storm contribution.
First quarter net loss was $15.0 million (GAAP). Adjusted net loss was $11.3 million, an improvement from a net loss of $14.1 million last year. On a per-share basis, the loss was $0.36 (GAAP). Adjusted loss per share for the fiscal first quarter was $0.27, an improvement from a $0.34 loss per share for the first quarter of fiscal 2017.
The company is increasing its fiscal 2018 earnings outlook to $1.41 to $1.58 per diluted share, before business optimization costs, from previous guidance of $1.31 to $1.48 per diluted share due to the impact to date of storm-related activity.
"Our first quarter results were better than we expected, largely driven by strong demand for generators resulting from the recent hurricanes and early shipments of engines to fulfill customer orders," said Todd J. Teske, Chairman, President and Chief Executive Officer. "At the same time, we maintained positive momentum in our commercial offerings, delivering innovative products that make people more productive. In addition, favorable grass growing conditions in the U.S. and Europe extended from the late summer months into early fall. We continue to believe that U.S. lawn and garden channel inventories are near historic lows. All of this makes us well-positioned to achieve our sales growth outlook for the year."
Teske continued, "I am proud of the efforts of our team, who diligently worked with our retail partners throughout the development and aftermath of the storms to deliver generators to help people in the affected areas in their time of need. Our increased sales and earnings guidance for fiscal 2018 reflects the storm impact to date and does not include estimates beyond this period. While it is too early to quantify its impact, the active storm season this year has stimulated higher activity, particularly for our standby generator product offerings, as consumers and small businesses look for reliable back-up power solutions."