Profile: Briggs & Stratton Corp (BGG)
30 Jun 2015
Briggs & Stratton Corporation, incorporated on September 2, 1992, 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, markets generators, 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.
Briggs & Stratton manufactures four-cycle aluminum alloy gasoline engines with displacements ranging from 125 to 993 cubic centimeters through its Engines segment. The Company’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 June 30, 2014 (fiscal 2014). 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 2014 were for use on products for industrial, construction, agricultural and other consumer applications that include portable and standby generators, pumps and pressure washers. The segment also manufactures replacement engines and service parts and sells them to sales and service distributors. The Company owns its principal international distribution centers. 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. an Kohler Co.
Power Products Segment
The Company’s 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 segment’ product lines are marketed under its own brands such as Briggs & Stratton, Snapper, Simplicity, Ferris, Snapper Pro, Murray, Branco, Victa as well as other brands such as John Deere, GE, and Troy-Bilt. The Company has a network of independent dealers worldwide for the sale and service of snow throwers, standby generators and lawn and garden powered equipment. Its major customers are Lowe’s, Sears, The Home Depot, Wal-Mart, Tractor Supply Inc., Bunnings Warehouse, and a network of independent dealers. Sales to the top three customers combined were 27% of the segment net sales in fiscal 2014.
The Company competes with Honda Motor Co., Ltd., Generac Power Systems, Inc., Alfred Karcher, Techtronic Industries, Deere & Company, MTD, The Toro Company, Scag Power Equipment and HOP.
Briggs & Stratton Corp
12301 W Wirth St
WAUWATOSA WI 53222