The U.S. Bankruptcy Court in Nashville, Tenn., last week approved Briggs & Stratton’s acquisition of the assets of Murray Inc., a Brentwood, Tenn.-based manufacturer of lawnmowers and snowblowers currently under Chapter 11 bankruptcy protection. Murray owed Briggs & Stratton more than $30 million, and its failure to pay caused the Wauwatosa, Wis.-based engine maker’s quarterly net income to drop 66 percent to $7.1 million, or 14 cents per share, compared with $20.6 million, or 43 cents per share for the same period a year ago.
Still, Briggs & Stratton’s net sales for the three months ended in December increased 21 percent to $503.7 million, up from $416 million a year ago. The majority of the sales growth stemmed from additional sales revenue of $72.4 million from Port Washington, Wis.-based manufacturer Simplicity, which Briggs acquired in July 2004. If it were not for the write-off of the Murray debt, net income for the quarter would have increased because of price improvement and a more profitable mix of engine products sold.
Briggs & Stratton is projecting fiscal third-quarter net income growth of 13 to 15 percent, and sales growth of 30 percent.
