Briggs & Stratton’s fiscal 2011 consolidated net sales (year ending July 3) were $2.1 billion, an increase of 4% from fiscal 2010—despite a fourth quarter that saw sales dip 1.7% from a year ago.
"We are pleased with our fiscal 2011 results when considering the significant challenges that have confronted the U.S. lawn and garden market," commented Todd J. Teske, chairman, president and CEO of Briggs & Stratton. "Sales growth in our international markets continued through the fourth quarter of fiscal 2011. This diversification of our customer base helped us deliver 14.4% growth in adjusted consolidated net income in a year that the North American consumer lawn and garden market has declined double-digits.
"The Board's authorization of a $50 million share repurchase program reflects continued confidence in our strategy, the long-term prospects of the business and our commitment to increase shareholder value,” Teske continued. “Our business continues to generate healthy cash flow, which allows us to opportunistically repurchase common shares while maintaining the flexibility to make strategic investments as we grow our business."
Engines Segment fiscal 2011 fourth quarter net sales were $392.3 million, 4.7% lower than the same period a year ago. This decrease in net sales was driven by approximately 13% lower shipment volumes compared to last year, due to lower sales to domestic OEMs as a result of unfavorable weather conditions in North America that have hampered the lawn and garden selling season, offset by improved engine pricing, a favorable mix of product shipped that reflected proportionally larger volumes of units used on commercial and riding lawn and garden equipment, and the favorable impact of foreign currency.
Engines Segment net sales for fiscal 2011 were approximately $1.4 billion, 2.9% higher than the same period a year ago despite a 2.1% decline in total unit shipment volumes. This increase from the same period last year was primarily due to higher international engine unit shipments, a favorable mix of product shipped that reflected proportionately larger volumes of units used on commercial applications, improved engine pricing and a $4.7 million foreign currency benefit, partially offset by reduced engine shipments primarily to customers in North America.
Power Products Segment fiscal 2011 fourth quarter net sales were $257.5 million, consistent with net sales of the same period a year ago. Fourth quarter results were primarily impacted by increased sales in the Australian and European markets as well as a $2.6 million foreign currency benefit. In the North American market, reduced shipment volumes of pressure washers and lawn and garden equipment were partially offset by increased shipments of portable generators. Sales of portable generators were favorably impacted by storm activity in the southern U.S. during the fourth quarter of 2011.
Power Products Segment net sales for fiscal 2011 were $879.0 million, 4.2% higher than the same period a year ago. This improvement was primarily due to increased sales in our Australian and European markets, partially offset by reduced unit shipment volumes of lawn and garden equipment, pressure washers and portable generators in the domestic market.
Business Outlook
- For fiscal 2012, the company projects that consolidated net income will be in the range of $53 million to $63 million or $1.05 to $1.25 per diluted share prior to the impact of any potential share repurchases.
- Consolidated net sales are projected to be higher by approximately 2% to 4% depending on the level of recovery of consumer spending within the outdoor power equipment category.
- Engines Segment sales are forecasted to be comparable to fiscal 2011 on lower volume and improved pricing while the Power Products Segment sales are forecasted higher primarily due to higher volumes of lawn and garden equipment and pressure washers.
- Demand for portable generators and the related engines due to landed hurricane activity have not been included in the fiscal 2012 sales forecast.
