Briggs & Stratton Corporation reported consolidated earnings results for the first quarter ended October 2, 2016. For the period, the company reported net sales of $286,797,000, loss from operations of $16,314,000, loss before income taxes of $20,362,000, net loss of $14,148,000 or $0.34 per diluted share against net sales of $289,458,000, loss from operations of $23,336,000, loss before income taxes of $26,417,000, net loss of $18,171,000 or $0.42 per diluted share a year ago. Net cash used in operating activities of $76,497,000 compared to $82,689,000 a year ago. Capital expenditures were $15,764,000 compared to $12,428,000 a year ago. Net debt as at October 2, 2016 was $230.4 million. The decrease in cash used in operating activities was primarily related to a lower net loss.

The company updated fiscal 2017 guidance: net sales are expected to be in a range of $1.86 billion to $1.90 billion, up from previous guidance of $1.84 billion to $1.89 billion. The company continue to expect that the U.S. residential lawn and garden market will improve by 1% to 4% including expected improvements in the housing market and more seasonal spring weather in key markets. Net income is expected to be in a range of $57 million to $64 million or $1.31 to $1.46 per diluted share (prior to the impact of any share repurchases), up from previous guidance of $55 million to $62 million or $1.26 to $1.41 per diluted share. Operating margins are expected to be approximately 5.5% to 5.8%, reflecting the benefit of the storm. Adjusted operating margins for fiscal 2016 were 5.0% (2.6% GAAP), which included the equity in earnings of unconsolidated affiliates for the second half of the fiscal year (5.2% if equity in earnings of unconsolidated affiliates had been included for the full year (2.7% GAAP)). The effective tax rate is expected to be in a range of 31% to 33%. Capital expenditures are now expected to be $70 million to $80 million.