Briggs & Stratton Corporation Reports Consolidated Earnings Results for the First Quarter Ended October 2, 2016; Revised Earnings Guidance for the Fiscal 2017
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.