Briggs & Stratton Corporation reports results for the fourth quarter and fiscal 2013
On August 15, Briggs & Stratton Corporation announced financial results for its fourth fiscal quarter and year ended June 30, 2013.
Highlights include:
* Fourth quarter fiscal 2013 consolidated net sales were $477.2 million, a decrease of $24 million from the prior year. Fourth quarter 2013 adjusted net income was $10.7 million, a decrease of $0.2 million from the prior year. Fourth quarter 2013 adjusted diluted earnings per share were $0.22, or comparable to the prior year.
* The Company recorded a non-cash pre-tax goodwill and tradename impairment charge of $90.1 million ($62.0 million after tax or $1.30 per diluted share) during the fourth quarter of fiscal 2013 within its Products Segment.
* Pre-tax charges related to the previously announced restructuring actions and a legal settlement were $5.7 and $24.1 million during the three and 12 months ended June 30, 2013, respectively.
* Including the impairment charges, restructuring costs and legal settlement, the fourth quarter fiscal 2013 consolidated net loss was $55.0 million compared to a net loss of $8.4 million in the same period last year.
* Fiscal 2013 consolidated net sales were $1.9 billion, a decrease of 9.9 percent from fiscal 2012. Fiscal 2013 adjusted net income was $45.1 million compared to $57.8 million in fiscal 2012. Fiscal 2013 adjusted diluted earnings per share were $0.93 compared to $1.15 in fiscal 2012.
* Operating cash flows for fiscal 2013 improved to $160.8 million from $66.0 million in fiscal 2012. Net debt at fiscal year-end 2013 was $36.9 million, a decrease from $71.9 million at the end of fiscal 2012.
* The Company’s restructuring actions achieved pre-tax savings of $37.2 million during fiscal 2013.
* Including the impairment charges, restructuring costs and legal settlement, the fiscal 2013 consolidated net loss was $33.7 million compared to net income of $29.0 million in fiscal 2012.
“During fiscal 2013, our industry continued to be impacted by cautious consumer spending on outdoor power equipment and channel inventory corrections following last summer’s droughts in the United States and Australia,” commented Todd J. Teske, chairman, president and chief executive officer of Briggs & Stratton Corporation. “We have seen retail sales momentum increase over the past several weeks compared to last year, and we believe that inventory levels in the channel are decreasing to more normal levels. Focusing on things within our control, we had solid execution during the year on realizing $37 million in cost savings from our restructuring actions, exiting the lower-margin mass retail lawn and garden products business and expanding our international distribution in Southeast Asia and Latin America, including the acquisition of Branco in Brazil. Our focus on reducing the working capital requirements in the business resulted in over $160 million of cash flows from operations in fiscal 2013 and a solid balance sheet which positions us well for executing our strategy of growing the global engines business and expanding in higher-margin products in our existing markets and in developing regions of the world.”
For more information, visit www.briggsandstratton.com.
