Briggs & Stratton Corp.'s fiscal second-quarter earnings fell 5.2% as the company saw sales drop by double digits.
But cost cuts partially offset demand weakness at the maker of small gasoline engines that run lawn equipment and other machines found in home garages.
For the quarter ended Dec. 31, Briggs & Stratton reported a profit of $3 million, or 6 cents a share, down from $3.2 million, or 6 cents, a year earlier. Revenue dropped 18% to $393 million.
Analysts polled by Thomson Reuters had most recently forecast earnings of 6 cents on $430 million in revenue.
Gross margin rose to 18% from 15.9% amid the cost cuts
Sales of engines dropped 19% to $274.3 million because of lower shipments for products with lawn-and-garden applications, while power- products sales dropped 18% on lower generator shipments because of a lack of major weather events. However, both segments saw improved bottom lines, though power products remained in the red.
Shares of Briggs & Stratton, which reiterated its fiscal-year view, closed at $19.58 Wednesday and were inactive premarket.