Briggs Stratton Dc (NYSE:BGG)
Historical Stock Chart
1 Year : From May 2018 to May 2019
MILWAUKEE, Nov. 14, 2018 /PRNewswire/ -- Briggs & Stratton Corporation is a 110-year-old company in the midst of a transformation. Traditionally best known for its gasoline-powered engines for residential outdoor power equipment, the Company introduced a Business Optimization Program just over a year ago to increase production capacity for higher-margin commercial turf products, bring engine production closer to its customers, and better utilize its facilities to drive efficiencies. These actions, coupled with an ERP upgrade, are anticipated to yield pre-tax savings of $30 million to $35 million and set the foundation for continued profitable commercial growth.
"Over the last five years, we've successfully grown commercial sales by more than 70 percent, requiring us to evaluate all facets of our business to best support this growth," says Todd Teske, Briggs & Stratton chairman, president and CEO. "In a short amount of time, Briggs & Stratton has displayed quick execution and substantial movement toward meeting the goals of the Program, and is on pace to meet the expected pre-tax cost savings."
Positioning Product to Serve Customers More Quickly and Effectively
- Briggs & Stratton is moving production of its Vanguard® V-Twin Small and Big BlockTM engines from a joint venture partnership in Japan to its existing Statesboro, GA and Auburn, AL facilities in the United States. With 85 percent of Briggs & Stratton® engines and products made in the U.S.A. of U.S. and global components, the Company is close to its customer base with faster production times and faster shipping.
- By consolidating a number of its smaller existing engine and product warehouses throughout the U.S. into two large warehouses in Germantown, Wisconsin and Auburn, Alabama, Briggs & Stratton is increasing efficiencies to more effectively serve customers and provide a North American enterprise distribution footprint that supports its strategy and customers with optimal inventory and order delivery.
Investing in Facilities for Optimal Growth
- Given the significant commercial sales growth over the past five years, the Company is expanding its Ferris mower production capacity into a new, modern facility in Sherrill, NY. This allows employees to more effectively produce commercial offerings.
Upgrading Systems for Streamlined Operations
- At the core of the business is the Company's ERP system. Recognizing the need to be easier to do business with and streamline processes to be more efficient and work more effectively, the Company invested in upgrading its global ERP system, which was recently integrated into the business.
For additional Business Optimization Program updates, follow the Company's quarterly earnings announcements, as outlined on investors.basco.com.
About Briggs & Stratton Corporation:
Briggs & Stratton Corporation (NYSE: BGG), headquartered in Milwaukee, Wisconsin, is focused on providing power to get work done and make people's lives better. Briggs & Stratton is the world's largest producer of gasoline engines for outdoor power equipment, and is a leading designer, manufacturer and marketer of power generation, pressure washer, lawn and garden, turf care and job site products through its Briggs & Stratton®, Simplicity®, Snapper®, Ferris®, Vanguard®, Allmand®, Billy Goat®, Murray®, Branco® and Victa® brands. Briggs & Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents. For additional information, please visit www.basco.com and www.briggsandstratton.com.
Safe Harbor Statement:
This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. The words "anticipate", "believe", "estimate", "expect", "forecast", "intend", "plan", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements are based on the company's current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully forecast demand for its products; changes in interest rates and foreign exchange rates; the effects of weather on the purchasing patterns of consumers and original equipment manufacturers (OEMs); actions of engine manufacturers and OEMs with whom the company competes; changes in laws and regulations, including U.S. tax reform, changes in tax rates, laws and regulations as well as related guidance; imposition of new, or change in existing, duties, tariffs and trade agreements; changes in customer and OEM demand; changes in prices of raw materials and parts that the company purchases; changes in domestic and foreign economic conditions (including effects from the U.K.'s decision to exit the European Union); the ability to bring new productive capacity on line efficiently and with good quality; outcomes of legal proceedings and claims; the ability to realize anticipated savings from the business optimization program and restructuring actions; and other factors disclosed from time to time in the company's SEC filings or otherwise, including the factors discussed in Item 1A, Risk Factors, of the company's Annual Report on Form 10-K and in its periodic reports on Form 10-Q. The company undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this release.
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SOURCE Briggs & Stratton Corporation