Milwaukee, Wis.-based Briggs & Stratton Corp. last week announced fiscal 2007 fourth-quarter consolidated net sales of $678.9 million, compared with 4Q06 consolidated net sales of $656.0 million. Fourth-quarter ’07 consolidated net income was $16.3 million or $0.32 per diluted share, which included a $7.9 million pretax write-down of assets associated with a plan to close its Port Washington, Wis., manufacturing facility by October 2008, compared with 4Q06 consolidated net income of $15.8 million, or $0.31 per diluted share.
The consolidated net sales increase of $22.9 million or 3.5 percent was due to a $77.6 million or 20-percent increase in the Engines Segment's net sales offset by a $56.2 million or 17-percent decrease in the Power Products Segment's net sales. Fourth-quarter consolidated net income, excluding the write-down of assets, improved by more than $5 million as compared to the prior year. The improvement is attributed to increased engine unit shipments offset by lower shipments of generator units and reduced fixed cost absorption due to lower production volumes.
For fiscal 2007, the company had consolidated net sales of $2.16 billion and consolidated net income of $0.1 million or $0 per diluted share. For fiscal 2006, consolidated net sales were $2.54 billion, and consolidated net income was $102.3 million or $1.98 per diluted share. The $385.0 million or 15-percent decrease in consolidated net sales was due to reduced shipments of portable generators, decreases in engine unit shipments and reduced shipments of lawn and garden equipment caused primarily by unfavorable market conditions during the year.
For fiscal 2008, the company projects that net income will be in the range of $60 to $70 million or $1.18 to $1.38 per diluted share. The estimate is based on the assumption that consolidated net sales will grow 9 to 10 percent between years primarily due to volume in the Engines Segment. The estimate assumes that there will be no hurricane activity in fiscal 2008.
In addition, at its regular quarterly meeting held last week, the Briggs & Stratton board of directors declared a quarterly dividend of $0.22 per share on the common stock. The dividend is payable Oct. 1, to shareholders of record at the close of business Aug. 20.
