Briggs & Stratton Corporation produces gasoline engines for outdoor power equipment. The company designs, manufactures, markets, sells and services these products for original equipment manufacturers (OEMs) worldwide. In addition, the company markets and sells related service parts and accessories for its engines. The company markets pressure washers, and designs, manufactures, and markets power generation, lawn and garden, turf care and job site products through its Simplicity, Snapper, Snapper Pro, Ferris, PowerBoss, Allmand, Billy Goat, Murray, Branco and Victa brands. The company’s products are designed, manufactured, marketed, sold, and serviced in approximately 100 countries on 6 continents. Segments The company operates through two segments, Engines and Products. Engines This segment manufactures four-cycle aluminum alloy gasoline engines with horsepower ranging from 5.5hp up to 37hp and torques that range from 4.50 feet-lbs gross torque to 21.00 feet-lbs gross torque. The company’s engines are used primarily by the lawn and garden equipment industry. Major lawn and garden equipment applications include walk-behind lawn mowers, riding lawn mowers, garden tillers and snow throwers. Many retailers specify the company's engines on the power equipment they sell and the Briggs & Stratton logo is often featured prominently on a product because of the appeal and reputation of the brand. The company supplies gasoline engines in developed countries where there is an established lawn and garden equipment market. The company also exports engines to developing nations where its engines are used in agricultural, marine, construction and other applications. The company's engines are sold primarily by its worldwide sales force through direct interaction with customers. The Engines segment also manufactures replacement engines and service parts and sells them to sales and service distributors. Customers The company's engine sales are primarily to OEMs. The company's three major external engine customers in fiscal year 2016, were Husqvarna Outdoor Products Group (HOP), MTD Products Inc. (MTD), and Deere & Company. In 2016, approximately 80% of the company’s lawn and garden powered equipment sold in the United States was sold through mass merchandisers, such as The Home Depot, Inc. (The Home Depot), Lowe’s Companies, Inc. (Lowe’s), Sears Holdings Corporation (Sears), and Wal-Mart Stores, Inc. (Wal-Mart). Competition The company’s major competitors in engine manufacturing are Honda Motor Co., Ltd. (Honda), Kawasaki Heavy Industries, Ltd. (Kawasaki), and Kohler Co. (Kohler). Seasonality of Demand Sales of engines to lawn and garden OEMs are highly seasonal because of consumer buying patterns. The majority of lawn and garden equipment is sold during the spring and summer months when most lawn care and gardening activities are performed. Sales of lawn and garden equipment are also influenced by consumer sentiment, employment levels, new and existing home sales and weather conditions. Engine sales in the company’s third fiscal quarter (year ended July 3, 2016) have historically been the highest, while sales in the first fiscal quarter have historically been the lowest. In order to use its capital investments and meet seasonal demand for engines, the company pursues a balanced production schedule throughout the year. The schedule is adjusted to reflect changes in estimated demand, customer inventory levels and other matters outside the control of the company. Accordingly, inventory levels generally increase during the first and second fiscal quarters in anticipation of customer demand. Inventory levels begin to decrease as sales increase in the third fiscal quarter. This seasonal pattern results in high inventories and low cash flow for the company in the first, second and the beginning of the third fiscal quarters. The pattern generally results in higher cash flow in the latter portion of the third fiscal quarter and in the fourth fiscal quarter as inventories are liquidated and receivables are collected. Manufacturing The company has joint ventures with Daihatsu Motor Company for the ma
briggs & stratton (BS7:Frankfurt)
12301 West Wirth Street
Wauwatosa, WI 53222
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