Foreign Currency Headwinds Challenge Briggs & Stratton in Fiscal First Quarter

Foreign Currency Headwinds Challenge Briggs & Stratton in Fiscal First Quarter

Engine and equipment manufacturer Briggs & Stratton posted a small 1.1-percent decrease in its fiscal 2016 first quarter, with $289 million compared to $292 million the previous year, primarily because of unfavorable foreign currency impact related to the weakening of the Euro, the Australian dollar and the Brazilian real. Excluding currency impacts, net sales increased $8 million. The increase was driven by the results of acquisitions of Allmand Bros. and Billy Goat Industries completed during fiscal 2015, higher shipments of small engines used on walk mowers and increased sales of commercial lawn and garden equipment.

For the quarter, consolidated net loss was $15.2 million, compared to $9.3 million in the first quarter of fiscal 2015.

“Our first quarter results were better than we expected, driven by solid late-season activity in the major lawn and garden markets, especially in the U.S.,” said Todd Teske, chairman, president and CEO. “We believe the late-season activity has resulted in more normal channel inventories compared to the end of last season. Also we are encouraged by the continued profitability improvement of our Products business through a focus on selling high-end residential and commercial products while improving the efficiency of our operation. While these factors are encouraging, we are cautious about the global economy and continued foreign currency headwinds as well as continued low oil prices which negatively impact a portion of our jobsite product sales.”

Briggs & Stratton Corp. is based in Milwaukee.

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