(Reuters) - Briggs & Stratton Corp (BGG.N), the world’s largest producer of gasoline engines for outdoor power equipment, posted an adjusted quarterly profit below Wall Street expectations as severe drought conditions in North America reduced its sales.
The company also forecast lower-than-expected full-year earnings due to the potential impact of the recent storm activity and the dry conditions in the United States.
It expects earnings of between $1.25 and $1.55 per share, below analysts’ expectations of earnings of $1.56 per share.
Briggs & Stratton increased its quarterly dividend to 12 cents per share from 11 cents, payable on or after October 1 to shareholders of record at the close of business on August 20.
The company said it had bought $39.3 million worth of shares in the fourth quarter as part of a share repurchase program.
Fourth-quarter net loss narrowed to $8.4 million, or 18 cents a share, from $17.8 million, or 36 cents per share, a year earlier.
Excluding items, the company earned 22 cents per share.
Revenue fell 17 percent to $501.2 million.
Analysts had expected earnings of 28 cents a share on revenue of $606.2 million, according to Thomson Reuters I/B/E/S.
Net sales at the company’s engine segment fell 18 percent to $322.5 million.
Shares of the company were down 7 percent at $16.41 in early trading on the New York Stock Exchange.
Reporting by Megha Mandavia in Bangalore; Editing by Maju Samuel