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Briggs & Stratton Corporation Reports Strong Sales and Net Income for the Third Quarter of Fiscal 2004.

Article Excerpt
Briggs & Stratton Corporation

Briggs & Stratton today announced fiscal 2004 third quarter consolidated net sales of $654.7 million and net income of $71.3 million or $2.88 per diluted share. The third quarter of fiscal 2003 had consolidated net sales of $560.4 million and net income of $43.0 million or $1.81 per diluted share. The $94.3 million or 17% consolidated net sales increase was primarily the result of shipment increases in both the Engines and Power Products business segments. The net income increase of $28.3 million was the result of increased Engines segment sales, a shipment mix that favored engines with higher margins, and greater production volumes in both business segments that lowered unit costs.

For the first nine months of fiscal 2004, the Company had net sales of $1,402.1 million and net income of $95.9 million or $3.95 per diluted share. For the same period a year ago, net sales were $1,149.5 million, and net income was $47.7 million or $2.10 per diluted share. Most of the $252.6 million or 22% sales increase for the first nine months was the result of increased shipments that occurred in both business segments. The majority of the nine-month net income improvement of $48.2 million was the result of increased sales, primarily in the Engines segment, strong production volume increases in both business segments, and a benefit from more favorable exchange rates in fiscal 2004 on Euro denominated engine sales.

Engines:

Third quarter sales were $581.9 million versus $496.9 million for the same period a year ago, an increase of $85.0 million or 17%. A majority of the 17% improvement was the result of a 13% increase in engine unit shipments. The remainder of the improvement was the result of a favorable mix of engine shipments and a $4.4 million revenue improvement from favorable exchange rates on Euro denominated sales.

Sales for the first nine months of fiscal 2004 were $1,174.1 million versus $997.0 million in the prior year, an improvement of $177.1 million or 18%. An engine unit shipment increase of 15% and a favorable Euro impact of $22.3 million were the main drivers of the sales increase....