August 13 -- Small-engine and outdoor power-equipment maker Briggs and Stratton reversed an $18 million profit last year into a nearly identical loss this time around, as its engines segment suffered from a 13% drop in shipment volumes.
A hefty goodwill write-down also hurt numbers. Industry-wide, sales in the lawn and garden market dropped by double-digit rates over the full year, reflecting the tough environment that mass-merchandise retailers like Home Depot and Lowe's have endured from the horrible housing market.
Briggs and Stratton sells about half of all the engines it makes to three companies -- Husqvarna, MTD, and Deere. Some analysts expect the market for lawn and garden equipment to rebound based on a housing recovery.
The Freedonia Group expects the segment to grow almost 6% annually through 2015, but I have a hard time seeing that, considering housing's current malaise.
Some housing experts don't expect the industry to recover until 2015, so expecting power equipment to grow into that market is difficult to imagine.
With almost a third of CAPS members rating the engine maker to underperform the market, it seems they're not too enthusiastic, either.
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