Briggs & Stratton’s 2016 fiscal third quarter sales, ending March 27, were down 2.5% as compared to one year ago. That said, lawn and garden business in the U.S. remains solid amidst struggling European and international markets.
Todd Teske, chairman, president and CEO of Briggs & Stratton, had this to say: "Our fiscal 2016 third quarter results were impacted by many economic factors. In the U.S., we continue to be encouraged by the housing recovery as well as some positive signs of regional early season demand for outdoor power equipment. Our Job Site business continues to be impacted by the downturn in U.S. oil production which is masking the improvements in other areas of our Products Segment ... Internationally our sales were down by 16% in the quarter driven by a delayed start to the European lawn and garden market combined with continued global economic uncertainty and a stronger U.S. dollar.”
ENGINES SEGMENT. Third quarter sales were down 3.8% overall, although sales in North America were up. Sales for the year are down 3.4% across all global markets.
PRODUCTS SEGMENT. Third quarter sales were up 4.6%. Sales for the year are down 3.5%.
OUTLOOK. Weak consumer spending on lawn and garden equipment internationally, coupled with reduced jobsite product demand due to elevated channel inventories, is prompting Briggs to revise-down its fiscal forecast from $1.9-$1.96 billion to $1.85-$1.92 billion. The company still expects the U.S. lawn and garden market to grow roughly 1-3%, reflecting the gradual improvement in the housing market. However, it is possible that some sales activity shifts to a bit later in the year.