MILWAUKEE (April 2012) - Briggs & Stratton announced today
several additional actions being taken to execute the
Company's strategy. Beginning in fiscal 2013, the
Company will no longer pursue placement of lawn and garden
products at national mass retailers. The Engines segment
will continue to support lawn and garden equipment OEMs who
provide lawn and garden equipment to these retailers.
The Products segment will continue to focus on innovative,
higher margin products that are sold through our network of
Simplicity, Snapper and Ferris dealers and regional
retailers. The Company will also continue to sell pressure
washers, and portable and standby generators through the
U.S. mass retail channel.
Briggs & Stratton also announced that production of
horizontal shaft engines currently made in the Auburn,
Alabama plant will move to the Company's existing
production facility in Chongqing, China or be sourced from
third parties in Southeast Asia. The Company previously
moved smaller horizontal shaft engines to the Chongqing,
China plant in 2007 where these types of engines can be
made more competitively. The Company will continue to
manufacture portable generators in Auburn through calendar
2012 and is evaluating alternatives with respect to
manufacturing, assembling or sourcing cost effective
portable generators beyond 2012. The Auburn plant will
continue to produce V-Twin engines used in riding mowers
and other outdoor power applications.
In addition to focusing our Products business on the dealer
channel and moving certain production out of the Auburn
facility, the Company also announced that it intends to
reduce its salaried headcount by approximately 10% during
fiscal 2012. "While we appear poised for an improved lawn
and garden market here in the U.S., our longer term
projections of the lawn and garden market in the U.S. and
in Europe do not return to the peaks that we saw in 2004
and 2005 for the foreseeable future. We previously
announced capacity reductions in our manufacturing
facilities and have announced today that certain portions
of our current business will not be strategic for us in the
future." said Todd Teske, Chairman, President & CEO.
"As a result, we are taking the difficult, but necessary
actions, to reduce our salaried support staff as
well. While it is very difficult to take these
actions, it is necessary to reach our strategic goals and
position Briggs & Stratton for success in the future,"
stated Teske.
The Company anticipates approximately 250 regular employees
will be affected by the Auburn, Alabama facility
consolidation. The 10% reduction of the Company's salaried
workforce will affect approximately 210 employees
globally.The Company anticipates it will be adding
approximately 12 to 15 full time employees at its Menomonee
Falls facility after construction is completed. The
consolidation of the brand parts distribution center from
its McDonough, Georgia facility will result in the loss of
approximately 4 regular employees and 65 temporary
employees.
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Briggs & Stratton Corporation, headquartered in
Milwaukee, Wisconsin, is the world's largest producer of
gasoline engines for outdoor power equipment. Its wholly
owned subsidiary Briggs & Stratton Power Products Group LLC
is North America's number one manufacturer of portable
generators and pressure washers, and is a leading designer,
manufacturer and marketer of standby generators, along with
lawn and garden and turf care through its Simplicity®,
Snapper®, Ferris® and Murray® brands. Briggs &
Stratton products are designed, manufactured, marketed and
serviced in over 100 countries on six continents.