Revenues down at Briggs & Stratton

Engine manufacturer Briggs & Stratton has reported a slight drop in revenues for the first quarter of fiscal 2015, ended September 28, 2014, posting consolidated net sales of US$ 292.6 million (€230 million), down 7.8% year-on-year.

The manufacturer attributed the decline to lower sales of engines resulting from higher channel inventories in North America and lower sales of engines for snow thrower OEM customers in Europe due to adequate inventories following last season.

But it said the decrease in net sales was partially offset by higher sales of pressure washers, snow throwers, lawn and garden equipment, and the Allmand acquisition.

Briggs & Stratton acquired Allmand Bros, a designer and manufacturer of portable lighting towers, industrial heaters, and solar LED arrow boards, in August this year for US$ 62 million (€49 million).

Briggs & Stratton said its 2015 first quarter consolidated net loss, which included restructuring expenses and acquisition related charges, was US$ 15.3 million (€12 million), compared to US$ 19.3 million (€15.2 million) for the first quarter of fiscal 2014.

Todd Teske, Briggs and Stratton chairman, president and CEO, said, "Coming into the fiscal year, we anticipated that higher channel inventories of lawn and garden equipment would impact our first quarter engine sales compared with last year, which benefitted from lower channel inventories and strong late season retail sales of equipment.

"Our OEM customers and retailers have taken actions to reduce inventories which impacted our engine sales.

"Despite the sales decrease, we are pleased with the improved margins in both the engines and products businesses, reflecting the cost cutting actions and our focus on higher margin products, including the acquisition of Allmand."