Briggs & Stratton Corporation produces air cooled gasoline engines for outdoor power equipment. The company designs, manufactures, markets 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. Through its wholly owned subsidiary, Briggs & Stratton Power Products Group, LLC, the company also designs, manufactures, and markets generators, pressure washers, snow throwers, lawn and garden powered equipment (primarily riding mowers) and related service parts and accessories. The company has joint ventures with Daihatsu Motor Company for the manufacture of engines in Japan, and with Starting Industrial of Japan for the production of rewind starters and punch press components in the United States. The company has a strategic relationship with Mitsubishi Heavy Industries (MHI) for the distribution of air cooled gasoline engines manufactured by MHI in Japan under Briggs & Stratton’s Vanguard brand. Segments The company operates through two segments, Engines and Products. Engines This segment manufactures four-cycle aluminum alloy gasoline engines with displacements ranging from 125 to 993 cubic centimeters. 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. The engines sold are for use on products for industrial, construction, agricultural, and other consumer applications that include portable and standby generators, pumps, and pressure washers. The company serves its international markets through its European regional office in Switzerland, its distribution center in the Netherlands and sales and service subsidiaries and offices in Australia, Austria, Brazil, Canada, China, the Czech Republic, England, France, Germany, Italy, Japan, Mexico, New Zealand, Poland, Russia, South Africa, Sweden and the United Arab Emirates. The company also exports engines to developing nations where its engines are used in agricultural, marine, construction and other applications. The Engines segment also manufactures replacement engines and service parts and sells them to sales and service distributors. During 2014, the company joined with one of its independent distributors to form a venture to distribute service parts. Majority of its lawn and garden powered equipment was sold through mass merchandisers such as The Home Depot, Inc.; Lowe’s Companies, Inc.; Sears Holdings Corporation (Sears); and Wal-Mart Stores, Inc. Seasonality: 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 fiscal third quarter have historically been the highest, while sales in the first fiscal quarter have historically been the lowest. Customers: The company's engine sales are primarily to OEMs. The company's major engine customers in the fiscal year 2014 included Husqvarna Outdoor Products Group; MTD Products Inc. (MTD); and Deere & Company. Competition: The company’s major domestic competitors in engine manufacturing are Honda Motor Co., Ltd.; Kawasaki Heavy Industries, Ltd.; and Kohler Co. Products This segment’s principal product lines include portable and standby generators, pressure washers, snow throwers, and lawn and garden power equipment. This segment sells its products through multiple channels of retail distribution, including consumer home centers, warehouse clubs, mass merchants, and independent dealers. The company sells its lawn and garden powered equipment, snow throwers, and standby generators primarily through an independent dealer network, and sells its pressure washers and portable generators primarily through the U.S. mass retail channel. The Products segment product lines are marketed under its own brands, such as Briggs & Stratton, Snapper, Simplicity, Ferris, Snapper Pro, Murray, Branco, and Victa as well as other brands such as Craftsman, GE, and Troy-Bilt. This segment has a network of independent dealers worldwide for the sale and service of snow throwers, standby generators and lawn and garden powered equipment. Customers: This segment’s customers include Lowe’s, Sears, The Home Depot, Wal-Mart, Tractor Supply Inc., Bunnings Warehouse, and a network of independent dealers. Seasonality: Due to seasonal and regional weather factors, sales of pressure washers and lawn and garden powered equipment are higher during the third and fourth fiscal quarters than at other times of the year. Sales of portable generators and snow throwers are higher during the first and second fiscal quarters and can spike during weather related power outage events. Competition: The company’s competitors include Honda (portable generators, pressure washers and lawn and garden equipment); Generac Power Systems, Inc. (portable and standby generators); Alfred Karcher GmbH & Co. (pressure washers); Techtronic Industries (pressure washers and portable generators); Deere & Company (commercial and consumer lawn mowers); MTD (commercial and consumer lawn mowers); The Toro Company (commercial and consumer lawn mowers); Scag Power Equipment, a Division of Metalcraft of Mayville, Inc. (commercial lawn mowers); and Husqvarna Outdoor Products Group (commercial and consumer lawn mowers). Research and Development As of June 29, 2014, the company spent approximately $19.7 million on research activities relating to the development of new products or the improvement of existing products. History Briggs & Stratton Corporation was founded in 1908.
briggs & stratton
(BS7:German Stock Exchange)
12301 West Wirth Street
Wauwatosa, WI 53222
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