Briggs & Stratton Corp. announced adjusted net income improved to $15.1 million in the second quarter of fiscal 2016 compared to $11.9 million in the second quarter of fiscal 2015, a 26.9-percent leap. Second quarter fiscal 2016 consolidated net sales were $413 million, a 7-percent decline compared to the fiscal second quarter of 2015, which ended Dec. 27. Net sales dropped 5 percent discounting currency impacts.
“We are pleased to report improved quarterly results with continued margin improvements in both our engines and products businesses,” said Todd Teske, chairman, president and CEO. “These improvements reflect our focus on selling higher margin products as well as our focus on improving our operations. We expect some modest industry growth in the upcoming season here in the U.S. and we maintain some caution regarding the global economy.
“Looking forward to the upcoming U.S. lawn and garden season, we have gained additional placement of our engines on lawn-and-garden products as compared to our placement last year. In addition to introducing new products to the market this spring, we will be expanding our offering of new products that we have launched over the past several years to give consumers and commercial users around the world greater access to this innovation.”
Given a solid first half operating performance, Briggs & Stratton said it is increasing its earnings guidance for fiscal 2016, now estimating net income for fiscal 2016 to be in the range of $56 million to $63 million. Previous guidance called for a range of $54 million to $61 million.
“Compared to last year, operating margins are expected to be slightly improved as product margin expansion and manufacturing efficiency improvements are tempered by some economic instability overseas, including the impacts of a stronger dollar,” the company said. “We continue to anticipate net sales for fiscal 2016 to be in a range of $1.90 billion to $1.96 billion. This sales range contemplates modest organic growth with our expectations of the U.S. market to improve by 1 percent to 3 percent for the next season. Acquisitions completed in fiscal 2015 are expected to add up to 2 percent to net sales.”
