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