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Briggs Earnings Up

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UCD
Briggs Earnings Up Briggs & Stratton Corp. has announced that a 20% increase in engine sales has offset slumping power products sales to boost fiscal fourth-quarter earnings. Power products sales, which includes the Ferris, Snapper Pro, Snapper and Simplicity brands, actually decreased 17% for the three-month period that ended June 30. Source: jsonline.com Briggs & Stratton takes a hit from closing factories By RICK BARRETT rbarrett@journalsentinel.com Posted: Aug. 9, 2007 Briggs & Stratton's full-year income plummeted due to the cost of closing factories, the company reported Thursday, but its fourth-quarter earnings increased 3% on higher engine sales. The world's largest maker of air-cooled gasoline engines reported a quarterly profit of $16.3 million, or 32 cents per share, compared with $15.8 million, or 31 cents per share, a year earlier. Excluding a $4.8 million, or 9 cent-per-share, charge to write down the value of assets from the planned closing of its Simplicity factory in Port Washington , Briggs earned 41 cents per share in the latest quarter. Sales were up 3.5% to $678.9 million from $656 million in the fourth quarter of 2006, due to a 20% increase in sales from the engine division. For fiscal 2007, the company reported a $146,000 profit and break-even earnings per share, compared with a profit of $102.3 million, or $1.98 per share, for fiscal 2006. The results for the latest year included a $26.2 million charge related to write-downs of assets associated with the restructuring of manufacturing plants. Briggs announced earlier that it would close its Simplicity lawn mower and snow-thrower plant in Port Washington in October 2008, eliminating about 325 jobs. The company plans to shift most of the work to a factory in McDonough, Ga. The company also is closing its small-engine plant in Rolla, Mo., by year's end. Opened in 1995, the Rolla plant employed between 750 and 800 at its peak but has lost jobs as the company has imported more engines from China. The Missouri plant was one of three that Briggs opened around the country when it moved to eliminate Milwaukee-area production of small engines in the 1990s. The company also opened plants in Alabama and Georgia at that time. Now, the Rolla plant is "winding down," said James Brenn, Briggs' chief financial officer. A Briggs plant in China produced about 440,000 engines in fiscal 2007 and is being geared up to produce between 775,000 and 800,000 engines in 2008. The plant has the capacity to build about 1 million engines a year, according to the company. "We have systematically ramped up in China over the last year by feeding them more engine volume," said Todd Teske, chief operating officer. Briggs is moving more production to the Czech Republic, in an effort to boost European sales. The company had seen a sales decline in Europe because of equipment manufacturers' decisions to buy their engines from Asian manufacturers. Briggs also said its sales of portable generators were down significantly due to a lack of U.S. hurricanes this year. Engine sales were up 20% in the quarter, largely because power equipment manufacturers pushed buying decisions later into the year. Dry weather, especially in the Southeast, also hampered sales of lawn and garden equipment. Briggs is not alone in facing industry challenges. A key competitor, Tecumseh Products Co. has closed its Wisconsin plant in New Holstein and has said it will quit making engines for lawn and garden equipment. Briggs said it expects a fiscal 2008 profit of $60 million to $70 million, or earnings per share of $1.18 to $1.38, on net sales growth of 9% to 10%. Analysts expect $1.91 per share, according to Reuters Estimates. Briggs shares closed at $32.47, down less than 1%.

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DMedal
quote:
Originally posted by wilm169 WHAT IS THIS DOING IN THIS FORUM????????????????????
Well, Briggs owns Simplicity, and when you buy your AC/Simplicity parts they come from Briggs in a Briggs box. Tractor related to me. Thanks Maynard. So what do these million engines per year go into and where are the good ones (Vanguard twins, I suppose) made? Wonder how many engines/year Briggs makes overall? -Don

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skunkhome
"Briggs also said its sales of portable generators were down significantly due to a lack of U.S. hurricanes this year." What a shame... I hope they did not ramp up to match the alarmists predictions of a bad hurricane season. I know it is far from over it has been quieter than average to this point.

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B-16_IC
The lack of hurricanes comment was kinda out of line. I am sure whoever said it didn't mean it to sound so heartless, or so I hope! The increase of engine sales offset the power equipment sales, that is a good sign. Briggs engines are holding their popularity, that is good. The power equipment sales slump is most probably as they say due to the droughts throughout the country, compounded by the whole "box store" junk problem. In these times of major change in U.S. manufacturing earnings up is a good sign!

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andrewk
quote:
Originally posted by UCD
It is related to Simplicity tractors and I put it here. If you have a problem with it take it up with the Executive committee.
I know you put it here, and I never said I cared. Didn't mean it to make you mad, if you are/were- sorry.
quote:
Woodydel: "If you can't read UCD's post and realize that Simplicity is in dire straits and that Briggs really doesn't give a damn about Simplicity due to it's lousy sales record, then you just don't get it."
For fans of the brand, its always the end of the world. I saw it with Oldsmobile fans, I see it here. It's not meant to be offensive, its just that most don't like change, especially when you have something that works for you. Nobody realizes that change doesn't have to be bad, but of course I just don't get it anywaysm03 I would like to see where other companies sales are for the year, and compare it to the numbers that Sim Corp put out. Then it's apples to apples, not "sales are down, so the company must be going down the toilet." As a person employed in the industry, I like to keep tabs on all manufacturers so that I know what to expect in my career down the line. I believe that power product sales are slumping everywhere, not just with Sim Corp. While it is a concern, this business is reliant on the weather and the economy, and whatever mother nature gives us is what we have to deal with. Sales are never a constant, and you have to take the down slope with the up- Its all simple economics.
quote:
Woodydel: "Simplicity (really Briggs) needs a good old updated retro version of a Model 700. Something to distinguish it from the others."
It'll never sell in volume enough to make it worth while. People don't look at a mower as an image statement like they used to, they want something that will minimize the time spent riding the thing so they can indulge themselves in something else. It has to trim, go fast, and cut good. The future of grass cutting still lies in the zero-turn. The tractor market is for those that have utilitarian purposes for their power equipment, and they will buy quality machines, as they spend lots of time on them. Simplicity has this market nailed. People don't want a mower because its different, they want one that cuts their yard with minimal effort. We have become a society of consumers that want everything done yesterday, and unfortunately, a revamped 700 series does not fit that picture in any way. I'd sure as heck be first in line to buy one, but then again, I am not the average consumer. My opinion here comes from my experiences on the sales end of the business, and what I hear the most that people want. People (most) just don't like to cut the yard anymore.
quote:
Woodydel: "Who is the dummy wishing for hurricanes to make sales?"
I doubt they are wishing. If they didn't prepare for hurricanes, they would be hurting, and if they do, and we don't get one, they just get more inventory, which is an asset (on paper) to them anyway. We usually get at least one hurricane, so as a company that builds things that get used in aftermath, it makes sense that they would prepare for it.
quote:
B16_IC: "The lack of hurricanes comment was kinda out of line. I am sure whoever said it didn't mean it to sound so heartless, or so I hope!"
I am 99 percent sure it was on their quarterly report so it probably just cited it in the summary section of the stockholders equity report. I don't have a copy of said report, but I have seen reports of similar companies that cite such things in similar ways, but that doesn't mean that is the case here. It sort of looks like I am picking on Woodydel here, but I don't mean it that way- this is good discussion, and I enjoy all the perspectives, and I am not trying to offend- JMHO Andy

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JohnFornaro
I like the idea of an electric tractor. It should run on a steel frame. I liked my cordless lawnmower from B&D, but it was plastic, and didn't last very long, so I promised not to buy another till they lasted as long as a cheap gas mower, ten years or so. Also, even tho the Briggs buyout of Simplicity has a lot of political portent, it is still tractor related. So the thread should be here, and not in the BRL. And Briggs. If you go to Etrade or a similar site, you'll see that Briggs has been making wide swings during the recent market tumult. If you could time them right, you could make some money speculating on the stock price. Key word being "if". As said here and elsewhere, Briggs is more interested in money and less interested in manufacturing products.

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DMedal
electric tractor on a stainless steel frame, please. All the old Electraks are rusting out. And need to keep in mind you're going to be buying replacement batteries for it every few years if you use it lots. Maybe an electric zero turn too. It is going to happen. As to Briggs being in it for the money, why is this a surprise? Simplicity was in it for the money. That's what corporations do, or they die. -Don

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JoeJ
If it should have been here or not is not the problem now. It SHOULD be removed at this point,,,along with all the posts,,,from public view!!! Move it to the "Club" forum and hash it out there,,maybe????

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dlcentral
When you get an eng from china now,does it come with a spare crank and rod,like when you get one of those cheap china elec tools and they come with a new armature and brushes in the box!what a joke,these cos cant get outta here fast enough,everyone'll be on welfare in 10 yrs,..

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JohnFornaro
Electric Tractor w/ StainlessSteel Frame. Only thing better wuld be a hydrogen powered tractor, with the appropriately modified 16HP Briggs, a high pressure tank, and.... A PV kit which you could put water in one end, and get hydrogen and oxygen in tanks at the other end.

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ZippoVarga
All of these opinionated comments are best left in PM's or in the BRL. As for UCD posting this here....I think Maynard has been here long enough to know the appropriate forum to post in. So...if you don't like it being here, stop reading it and move on. If your comments are of a negative nature, you can be sure that they are generally not appreciated and there for inappropriate for this public forum. Thus further pushing the envelope of this topic's original topic being washed into the BRL or some other Members Only forum. Bottom line...get over it and move on or face the Executive Committee for violating public forum guidelines. I'm a member so that I can gain information, and this original post provided such information. The drivel beyond the original post that argues the posts placement is a waste of our reading time and an insult to the entire web sight's purpose. The drama is best left to rest when you enter this web sight. If you do not appreciate the entries then contact the author personally through e-mail or PM. Do not berate them in this public forum as it is a direct violation of this sights objective. On the subject......Briggs and Stratton is making moves to protect itself financially. Don't we all try to do the same thing? Thanks for the post Maynard. It's informative and well placed.

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