Thursday, Briggs & Stratton Corporation (BGG), a manufacturer of gasoline engines and engine powered outdoor equipments, reported a surge in earnings for the fourth quarter, despite a 17% decline in net sales.
Net income for the quarter surged to $5.3 million or $0.11 per share from $0.5 million or $0.01 per share in the corresponding period last year.
Results for the most recent quarter include a $3.5 million, or $0.07 per share, expense associated with the closing of a manufacturing facility in Jefferson, Wisconsin. Included in the fourth quarter of fiscal 2008 was $8.1 million, or $0.16 per share, gain associated with the reduction of certain post closing employee benefit costs.
After considering the impact of the fourth quarter items related to facility closures in both periods, fourth quarter consolidated net income was higher by $16.4 million as compared to the prior year. The company ascribed the increase to lower spending, improved productivity, lower commodity costs and a lower effective tax rate, partially offset by the impact of decreased sales and production volumes.
On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales declined 17% to $482.8 million from $581.1 million in the same period last year. The company attributed the decline primarily to decreased shipment volumes in both the Engines and Power Products Segments. Five Street analysts expected the company to report sales of $545.19 million for the quarter.
Engines net sales were $336.0 million, down from $389.6 million a year ago, hurt by the current economic environment and weak consumer confidence. Power products net sales fell to $195.2 million from $245.6 million due to a reduction in unit shipments in every product category.
The company said global markets for engines are mixed at this time, but it expects the domestic market to grow slightly while export markets could be flat to possibly down next spring.
For fiscal 2009, net income increased to $32 million or $0.64 per share from $22.6 million or $0.46 per share last year. Net sales declined to $2.09 billion from $2.15 billion in the previous year.
Street analysts expected the company to earn $0.49 per share on sales of $2.16 billion for 2009.
Looking ahead, for fiscal 2010, the company expects net income to be in the range of $40 million to $50 million, or $0.80 to $1.01 per share. Consolidated net sales are projected to be approximately 4% lower between years primarily due to an absence of planned for hurricane related sales of portable generators in the 2010 forecast and selected price reductions to reflect projected lower commodity costs.
Analysts currently expect the company to earn $0.87 on sales of $2.19 billion for fiscal 2010.
BGG closed Wednesday's regular trading session at $17.02.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.