U.S. News

Briggs & Stratton Guides Below Expectations


Briggs & Stratton, which makes lawnmower engines and power tools, issued second-half and full-year earnings guidance below Wall Street's consensus views.

Briggs & Stratton said it expects to earn $86 million to $96 million, or $1.72 to $1.92 a share, in the second half of its fiscal year.

Wall Street is expecting the company to earn $1.95 a share in the second half of the year, according to analysts polled by Thomson Financial.

The company combined its guidance for the third and fourth quarters, saying, "We feel lawn and garden equipment manufacturers will schedule more of their production closer to the selling season, which could cause some shifting of engine shipments" between the quarters.

For the year, Briggs & Stratton expects net income of $62 million to $72 million, or $1.24 to $1.44 a share. Wall Street is looking for profit of $1.54 a share.

The outlook came as the Milwaukee, Wis.-based company reported a first-half loss of $23.9 million, or 48 cents a share, compared with a profit of $26.5 million, or 51 cents a share, in the first half of the previous year. First-half sales fell to $761.3 million from $1.1 billion.

Among other things, the company blamed the disappointing outlook on a lack of snow this winter, which has lowered demand for snow-throwers, and further reductions in its projections for the generator market.