Briggs & Stratton Swings To Q4 Profit - Update

(RTTNews) - Briggs & Stratton Corp. (BGG), Thursday reported a swing to profit for the fourth quarter, driven largely by higher revenues and gross margins, and lower one-time charges. Quarterly earnings missed Wall Street expectations, while sales surpassed estimates.

Milwaukee, Wisconsin-based Briggs & Stratton reported fourth-quarter profit of $7.8 million or $0.17 per share, compared with a loss of $55.0 million or $1.17 per share last year.

On an adjusted basis, earnings improved to $0.31 per share from $0.22 per share last year. On average, four analysts polled by Thomson Reuters expected earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Briggs, which makes gasoline engines for outdoor power equipment, said quarterly sales rose 4.1 percent to $496.8 million from $477.2 million last year. Analysts had a consensus revenue estimate of $495.93 million for the quarter.

The company said revenue growth was fueled by increased sales of large engines used on riding lawnmowers, pressure washers, and service parts used on lawn and garden equipment.

Forth-quarter engines segment sales increased 6.3 percent to $317.8 million, while gross margin improved to 22 percent from 18.2 percent last year. Product segment sales were $206.6 million, up 2 percent from last year, with gross margin rising to 12.4 percent from 11.6 percent last year.

"Despite a slower than normal start to the lawn and garden season this spring, we saw improved sales results for our engines and products due to the new innovative products launched this year and market share gains made within the large engine category," said CEO Todd Teske.

The company also boosted its quarterly dividend by 4 percent to $0.125 per share and authorized an additional $50 million in share repurchases.

Looking forward to the fiscal year 2015, the company expects adjusted earnings of $1.07 per share to $1.27 per share and sales of $1.88 billion to $1.94 billion. Wall Street currently sees earnings of $1.16 per share on revenues of $1.92 billion.

Separately, the company said it has agreed to buy Allmand, a towable light towers, industrial heaters, and solar LED arrow boards maker, for nearly $62 million in cash. The transaction is expected to be complete in the next 30 days, subject to customary due diligence.

BGG is currently trading at $19.62, up $0.61 or 3.21%, on the NYSE.