Briggs & Stratton Corp. (BGG) Friday reported a lower third-quarter profit as sales were hurt mainly by inclement weather in the U.S. and elsewhere. Both earnings and sales for the quarter came in short of Wall Street estimates.
The company slashed its outlook for fiscal year 2013, citing frailty in consumer spending for outdoor power equipment in the international markets and lower demand for snow thrower products in the U.S. and Europe. Briggs & Stratton shares lost 5 percent in afternoon trade on the New York Stock Exchange.
Briggs & Stratton makes air-cooled gasoline engines for outdoor power equipment.
The Wisconsin-based company reported quarterly earnings of $38.5 million or $0.78 per share, compared to about $40 million or $0.80 per share last year.
Excluding items, adjusted earnings for the quarter were $44 million or $0.89 per share, compared to $49.5 million or $0.99 per share a year ago.
On average, four analysts polled by Thomson Reuters expected earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter slid 11.5 percent to $637 million from $720 million a year ago. Analysts on consensus estimated revenues of $707.6 million.
Engine segment sales fell 9.3 percent from the prior year, and Product sales slid 17.7 percent.
For fiscal 2013, the company now expects net income of $1.16 to $1.33 per share on sales of $1.95 billion to $2 billion, prior to the impact of restructuring charges. Briggs & Stratton earlier expected net income of $1.25 to $1.55 per share on sales of $1.95 billion to $2.15 billion.
Analysts currently estimate earnings of $1.41 per share on sales of $2 billion.
The company continues to project U.S. market growth of 4 to 6 percent. Among international markets, Brazil continues to be a bright spot as its Branco acquisition is performing as anticipated.
The company's stock is trading at $21.00, down 5.19%, on a volume of about 1 million shares.
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