January 27 -- With stronger international business, Briggs & Stratton Corp. reported an overall 14.6% sales increase Thursday but a loss in its fiscal second quarter.
The Wauwatosa small-engine maker had a loss of $1.25 million, or 3 cents a share, compared with net income of $3.03 million, or 6 cents, a year earlier. Sales rose to $450.3 million in the quarter ended Dec. 31, an increase of $57.3 million.
The loss was related to a $2.2 million charge for previously announced organization changes and $2.4 million in costs associated with refinancing of senior notes.
Much of the sales increase was from international engine shipments, as well as improved lawn-and-garden and snow-thrower product sales, the company said.
Briggs is maintaining its revised fiscal 2011 outlook of net income in a range of $57 million to $68 million, or $1.13 to $1.35 a share. Sales are expected to be 2% to 4% higher than in fiscal 2010.
"We remain cautiously optimistic about the rate of the economic recovery, both here in the United States and abroad, and about the level of consumer confidence," Briggs CEO Todd Teske said in a conference call with analysts.
After the earnings announcement, Briggs shares closed at $21.15, up 2 cents.
The world's largest small-engine maker has lost some market share because of price increases, Teske said.
"Our discussions with key customers regarding product lineups for the 2011 spring and summer selling season, on the whole, went about as well as expected. Depending on the product mix, we believe we will achieve the expected price increase," he said.
The engine division's sales increased 14.5% in the quarter because of higher international shipments to European and Asian equipment makers. Sales of power products, including snow throwers and pressure washers, were up 13% from a year earlier.
As part of a restructuring, Briggs has established a corporate research and development function that will report to Teske. The focus will be on the next generation of products, he said.
The company has combined the management teams of its home and yard products, trying for greater efficiencies in areas such as manufacturing and product development.
It could be a couple more months before Briggs has more insight into the 2011 lawn-and-garden season. Equipment manufacturers often wait before gearing up for the spring, hoping to get a better sense of consumer spending.
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