BRIGGS & STRATTON ON PACE TO ACHIEVE SAVINGS IN SUPPORT OF COMMERCIAL GROWTH
Optimizes business with goal to yield $30 to $35 million annual pre-tax savings by FY2021
MILWAUKEE, Wisconsin (November 14, 2018) – 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.
Rick Carpenter
Briggs & Stratton Corporation
carpenter.rick@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 washers, 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.