Briggs & Stratton Corp. announced consolidated unaudited financial results for the second quarter and six months ended December 29, 2013. For the quarter, the company reported net sales of $416,592,000 against $439,066,000 a year ago. Income from operations of $5,164,000 against $4,278,000 a year ago, due to lower sales of standby and portable generators, partially offset by higher sales of engines and lawn and garden products. Income before income taxes was $2,321,000 against $1,129,000 a year ago. Net income was $702,000 against net loss of $635,000 a year ago. Diluted earnings per share were $0.01 against loss per diluted share of $0.02 a year ago. Adjusted net income was $2,298,000 against $3,678,000 a year ago. Adjusted diluted earnings per share was $0.05 against $0.07 a year ago. The impact of the reduced engines and generator sales in the quarter was an estimated $0.12 per diluted share compared with last year's second fiscal quarter. Adjusted loss from operations in the second quarter of fiscal 2014 was $4 million, an improvement of $0.5 million compared to last year.

For the six months, the company reported net sales of $733,896,000 against $748,086,000 a year ago. Loss from operations of $19,767,000 against $17,540,000 a year ago. Loss before income taxes was $25,027,000 against $23,771,000 a year ago. Net loss was $18,647,000 against $17,162,000 a year ago. Diluted loss per share was $0.41 against $0.37 a year ago. Adjusted net loss was $14,200,000 against $9,518,000 a year ago. Adjusted diluted loss per share was $0.31 against $0.21 a year ago. Net cash used in operating activities was $45,248,000 against $75,412,000 a year ago. Additions to plant and equipment was $18,063,000 against $16,744,000 a year ago. Net debt as at December 29, 2013 was $126.8 million. The improvement in operating cash flows was primarily related to changes in working capital needs in fiscal 2014 associated with lower seasonal growth in accounts receivable and inventory due to lower production levels and planned inventory reductions.

The company announced that for fiscal 2014, the company has revised its full year guidance to exclude the potential positive benefit of landed hurricanes from the upper end of the revenue and earnings guidance. In addition, the lower end of the guidance has been reduced to give effect to approximately $3.0 million of negative foreign currency fluctuations and the lack of European snow sales that are not likely to be recovered in the second half of the fiscal year. The company now expects net income to be in a range of $48 million to $57 million or $1.00 to $1.18 per diluted share prior to the impact of any additional share repurchases and costs related to announced restructuring actions. Fiscal 2014 consolidated net sales are projected to be in a range of $1.88 billion to $2.0 billion. The company continues to estimate that the retail market for lawn and garden products will increase 4-6% in the U.S. next season. The estimated incremental impact of exiting the sale of lawn and garden equipment through national mass retailers is approximately $10 million to $15 million of reduced sales in fiscal 2014. In addition, sales in fiscal 2013 were favorably impacted by sales of portable and standby generators in response to power outages during Hurricanes Isaac and Sandy. The upper end of earnings projections contemplates a higher market recovery in excess of 10% for the U.S. lawn and garden market. Operating income margins are expected to improve over fiscal 2013 and be in a range of 4.5% to 4.8% and reflect the positive impacts of the restructuring actions. Interest expense and other income are estimated to be approximately $18 million and $5 million, respectively. The effective tax rate is projected to be in a range of 30% to 33% and capital expenditures are projected to be approximately $50 million to $55 million.