Briggs & Stratton today announced fiscal 2009 fourth quarter consolidated net sales of $482.8 million and consolidated net income of $5.3 million or $0.11 per diluted share. The fourth quarter of fiscal 2008 had consolidated net sales of $581.1 million and consolidated net income of $0.5 million or $0.01 per diluted share. The consolidated net sales decrease of $98.3 million or 17% was due primarily to decreased shipment volumes in both the Engines and Power Products Segments.

Included in net income for the fiscal 2009 fourth quarter was a $5.8 million pretax ($3.5 million after tax or $0.07 per diluted share) expense associated with the closing of a manufacturing facility in Jefferson, Wisconsin. Included in the fourth quarter of fiscal 2008 was a $13.3 million pretax ($8.1 million after tax or $0.16 per diluted share) gain associated with the reduction of certain post closing employee benefit costs related to the closing of the Port Washington, Wisconsin manufacturing facility. After considering the impact of the fourth quarter items related to facility closures in both periods, fourth quarter consolidated net income was higher by $16.4 million as compared to the prior year. This increase was the result of lower spending, improved productivity, lower commodity costs and a lower effective tax rate, partially offset by the impact of decreased sales and production volumes.

For fiscal 2009, the company had consolidated net sales of $2.09 billion and consolidated net income of $32.0 million or $0.64 per diluted share. Fiscal 2008 consolidated net sales were $2.15 billion and consolidated net income was $22.6 million or $0.46 per diluted share. The $59.2 million decrease in consolidated net sales was due to the net effect of reduced shipment volumes, primarily related to lawn and garden equipment in the Power Products Segment, unfavorable currency exchange rates primarily related to the Euro and a mix of shipments that reflected lower priced units. Partially offsetting the consolidated net sales decrease were sales of $39.5 million included in the results for the first time this year due to the June 30, 2008 acquisition of Victa Lawncare Pty. Ltd., increased portable generator sales volume due to weather events and pricing improvements.

As noted above, included in fiscal 2009 consolidated net income is a $5.8 million pretax ($3.5 million after tax or $0.07 per diluted share) expense associated with the closing of the Jefferson, Wisconsin manufacturing facility. Fiscal 2008 consolidated net income included the $13.3 million pretax ($8.1 million after tax) gain associated with the reduction of certain post closing employee benefit costs referred to above and a $17.2 million pretax ($12.3 million after tax) net gain resulting from the redemption of preferred stock and the related dividends offset by expense from a snow engine recall. After considering the impact of these items, fiscal 2009 consolidated net income was higher by $33.3 million compared to the prior year, primarily the result of enhanced pricing, lower spending, improved productivity and lower interest expense. Partially offsetting these improvements was the impact of unfavorable currency exchange rates, higher commodity costs and mix of shipments that reflected lower margined product.

Engines:

Fiscal 2009 fourth quarter net sales were $336.0 million versus the $389.6 million for the same period a year ago, a decrease of $53.6 million or 14%. The decrease in net sales was the result of the mix of product shipped that reflected lower priced units, a 5% decrease in engine unit shipments compared to the same period a year ago and unfavorable currency exchange rates. Engine shipments were significantly impacted by the mix of lawn and garden products sold at retail, with higher priced riding equipment engines off more significantly than walk mower engines. Overall, we believe the current economic environment and weak consumer confidence are the main reasons for the sales decline.

Net sales for fiscal 2009 were $1.41 billion versus the $1.46 billion in the prior year, a decrease of $45.8 million or 3%. The decrease primarily results from the impact of the mix of product shipped that reflected lower priced units, a small decrease in engine shipments and unfavorable currency exchange rates. Product mix issues discussed for the fourth fiscal quarter were also applicable to the full fiscal year. Softer demand for engines for powered lawn and garden equipment was offset by the improvement in demand for engines for portable generators.

Income from operations for the fourth quarter of fiscal 2009 was $20.4 million, up $1.6 million from the $18.8 million during the same period in the prior year. Income from operations was similar between years, the result of lower spending, improved productivity and lower commodity costs, offset by lower sales and production volumes.

Income from operations for fiscal 2009 was $83.4 million, up $13.9 million from the $69.5 million in fiscal 2008. Fiscal 2008 consolidated net income included a $19.8 million expense for a snow engine recall. After considering the impact of the snow engine recall, fiscal 2009 income from operations was lower by $5.9 million compared to the prior year, primarily the result of less favorable Euro exchange rates and higher commodity costs in the current year, partially offset by lower engineering, selling and administrative expenses and improved productivity.

Power Products:

Fiscal 2009 fourth quarter net sales were $195.2 million versus $245.6 million from the same period a year ago, a decrease of $50.4 million. The net sales decrease was due to a reduction in unit shipments in every product category. Generally, the sales decrease experienced for the lawn and garden equipment category mirror the weak consumer confidence experienced during the spring selling season, especially as it relates to higher priced product like riding equipment. Portable generator shipments were lower because of a lack of storm related sales this year relative to last year and retailers reducing inventories compared to last year's pre-hurricane season.

Net sales for fiscal 2009 were $892.9 million versus $870.4 million in the prior year, a $22.5 million increase. The net sales increase for the year was the result of pricing and favorable mix improvements, the addition of sales by our acquisition of Victa Lawncare Pty. Ltd. and increased portable generator sales volume due to weather events. The primary offset to the sales improvements was a volume decline in our shipment of premium lawn and garden equipment that was comparable to the overall industry decline.

The loss from operations in the fourth quarter of fiscal 2009 was $6.1 million, which included a $4.6 million impairment expense related to the write-down of assets associated with the closure of the Jefferson, Wisconsin facility. The loss from operations in the fourth quarter of fiscal 2008 was $4.1 million, which included a $13.3 million gain related to reduced benefit costs associated with the closing of the Port Washington, Wisconsin facility. After considering the impact of the items related to the Wisconsin facilities, the loss from operations between years improved by approximately $15.9 million. The majority of the $15.9 million improvement resulted from pricing and favorable mix, lower spending, both in our active operations and the savings from closing the Port Washington facility and improved labor productivity. Offsetting the improvements was lower sales volumes.

The loss from operations for fiscal 2009 was $15.0 million, which included the $4.6 million expense related to the write-down of assets associated with the closure of the Jefferson, Wisconsin facility. The loss from operations for fiscal 2008 was $40.1 million, which included the $13.3 million gain that occurred in the fourth quarter of fiscal 2008. After considering the impact of the items related to the closures of the Wisconsin facilities, the loss from operations between years was improved by approximately $43.0 million. The majority of the improvement resulted from improvements in pricing and favorable mix, lower spending as previously described for the fourth quarter and improved productivity. Partially offsetting the improvements were increased commodity costs and lower sales volumes.