Briggs & Stratton Corp. today reported it lost $20.5 million, or 41 cents per share, in its fiscal first quarter, which was worse than its loss of $16.5 million, or 33 cents per share, in the same period a year ago.
The Milwaukee-based manufacturer of small engines said its quarterly sales increased to $366.7 million from $338.2 million.
"The increase in the net loss of $4.0 million is primarily the result of expenses associated with the previously announced shutdown of our Rolla, Mo., engine manufacturing plant and expenses associated with opening our new lawn equipment plant in Newbern, Tenn.," the company stated in a press release today. "We believe we need to make an additional adjustment of our forecast of sales of portable and standby generators for 2008 and even more of a concerted effort to reduce production levels to bring inventory levels down. As a result we believe the range of our net income forecast needs to be narrowed to $60 to $65 million or $1.21 to $1.31 per diluted share for the full year. The estimate is based on the assumption that consolidated net sales will grow approximately 7 percent to 8 percent between years primarily due to higher volume in the Engines Segment. Operating income margins are projected to be in the range of 5.1 percent to 5.4 percent, and interest expense and other income are forecasted at $40 million and $10 million, respectively. The effective tax rate for the full year is projected to be 30 percent to 32 percent.
Briggs reports brutal quarter
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