Briggs & Stratton Forecasts Lower Q1 Revenues And Earnings
15 September 2000
Briggs & Stratton Corporation Forecasts Lower First Quarter Revenues And EarningsMILWAUKEE, Sept. 15 Briggs & Stratton Corporation First quarter net sales for fiscal 2001 will be down between 35% and 40% on engine unit volume decreases of approximately 35%. This means that the Company will probably experience a first quarter loss per share between $0.13 and $0.18, in contrast to the current First Call consensus estimate of earnings per share of $0.14. The Company believes that the decreased volume in the first quarter will be recovered in the second and third quarters, hence, we continue to believe that full-year earnings per share will be similar to fiscal 2000 results. In its fiscal 2000 Fourth Quarter Earnings Release, Briggs & Stratton Corporation did state that its fiscal 2001 first quarter results would be well below the prior year because concerns of equipment manufacturers and retailers about potential engine shortages appeared to have disappeared. Fiscal 2001 first quarter shipments are projected to return to lower, more historical levels. The Company believed that the first quarter revenue drop from the prior year would be closer to 25%. Greater than expected engine and finished product inventories at generator manufacturers caused by slow sales at the retail level is the primary reason for the revised, lower revenue and earnings expectations. BRIGGS & STRATTON CORPORATION James E. Brenn Senior Vice President and Chief Financial Officer