Profile: Briggs & Stratton Corp (BGG)
14 Mar 2014
Briggs & Stratton Corporation (Briggs & Stratton) is a producer of 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. The Company manufactures, marketsgenerators, pressure washers, snow throwers, lawn and garden powered equipment (primarily riding and walk behind mowers) and related service parts and accessories. The Company operates in two segments: Engines and Power Products. On November 02, 2011, the Company acquired Premier Power Equipments and Products Private Ltd. of Tamil Nadu, India.
The Company manufactures four-cycle aluminum alloy gasoline engines with displacements ranging from 125 to 993 cubic centimeters through its Engines segment. Briggs & Stratton’s engines are used primarily by the lawn and garden equipment industry, which accounted for 86% of the segment’s engine sales to OEMs during the fiscal year ended July 01, 2012 (fiscal 2012). Major lawn and garden equipment applications include walk-behind lawn mowers, riding lawn mowers, garden tillers and snow throwers. The remaining 14% of engine sales to OEMs in fiscal 2012, were for use on products for industrial, construction, agricultural and other consumer applications, that include generators, pumps and pressure washers. Briggs & Stratton engines are sold primarily by its worldwide sales force through direct calls on customers. Briggs & Stratton also manufactures replacement engines and service parts and sells them to sales and service distributors. Briggs & Stratton owns its principal international distributors. In the United States the distributors are independently owned and operated. These distributors supply service parts and replacement engines directly to independently owned, authorized service dealers throughout the world.
The Company competes with Honda Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., Kohler Co.
Power Products segment’s (Power Products) principal product lines include portable and standby generators, pressure washers, snow throwers and lawn and garden powered equipment. Power Products sells its products through multiple channels of retail distribution, including consumer home centers, warehouse clubs, mass merchants and independent dealers. The products segment product lines are marketed under its own brands such as Briggs & Stratton, Snapper, Simplicity, Ferris, Snapper Pro, Murray, Victa as well as other brands such as Craftsman, John Deere, GE, and Troy-Bilt. Power Products has a network of independent dealers worldwide for the sale and service of snow throwers, standby generators and lawn and garden powered equipment. Power Products’ major customers are Lowe’s and Sears and Deere Company. Sales to these three customers combined were 27% of Power Products segment net sales in fiscal 2012. Other United States customers include Wal-Mart,The Home Depot, Tractor Supply Inc., and a network of independent dealers.
The Company competes with Honda Motor Co., Ltd., Generac Power Systems, Inc.. Techtronic Industries, Deere & Company, MTD, The Toro Company and Scag Power Equipment, and HOP.
Briggs & Stratton Corp
12301 West Wirth Street
WAUWATOSA WI 53222