MILWAUKEE, March 31, 2020 /PRNewswire/ -- Briggs &
Stratton Corporation (NYSE: BGG) (the company) today announced a
business update related to the COVID-19 pandemic.
To protect the health, safety and well-being of its employees,
customers, channel partners and the public, the company continues
to implement preventative measures while also seeking to meet the
needs of its global customers as an essential supplier to their
businesses. These measures include more frequent and deeper
cleaning of facilities; using appropriate social distancing
practices; working remotely when possible; restricting business
travel; cancelling certain events; and restricting visitor access
to facilities.
In response to the spread of COVID-19, uncertain economic
conditions resulting in reduced demand and potential constraints on
its supply chain, the company is reducing manufacturing activity at
several of its manufacturing facilities and has temporarily shut
down others. The company is also taking other actions to manage
operating expenses in this fluid business environment. It will
continue to monitor the situation and adjust manufacturing and
other operations as the situation warrants.
Despite the reduced production, the company believes it is
well-positioned with finished goods inventories in most categories
to meet expected customer demand, as well as with aftermarket parts
to support dealers worldwide in the repair and maintenance of
products. The company is closely monitoring the situation and
proactively taking actions needed to keep people safe and to supply
the market during this spring season.
At this time, it is difficult to estimate the magnitude of the
impact of the COVID-19 pandemic on the company's business,
financial position, results of operations or liquidity. The
magnitude of the impact, which could be material, will be
determined by the duration and span of the pandemic, operational
disruptions including those resulting from government actions and
the overall impact on the economy. The company expects
that its fiscal third and fourth quarter results will be adversely
impacted by the global pandemic. As a result, the company is
withdrawing its financial outlook for the fiscal year ending
June 28, 2020. An update will
be provided in the company's fiscal third quarter announcement of
financial results and conference call.
Forward-looking Statement
This release contains certain forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those projected in the forward-looking
statements. The words "anticipate," "believe," "estimate,"
"expect," "forecast," "intend," "plan," "project," and similar
expressions are intended to identify forward-looking statements.
The forward-looking statements are based on the Company's current
views and assumptions and involve risks and uncertainties that
include, among other things, the impact of the COVID-19 pandemic on
the Company's business, financial position, results of operations
and liquidity; the ability to successfully forecast demand for its
products; changes in interest rates and foreign exchange rates; the
effects of weather on the purchasing patterns of consumers and
original equipment manufacturers (OEMs); actions of engine
manufacturers and OEMs with whom the Company competes; changes in
laws and regulations, including U.S. tax reform, changes in tax
rates, laws and regulations as well as related guidance; imposition
of new, or changes in existing, duties, tariffs and trade
agreements; changes in customer and OEM demand; changes in prices
of raw materials and parts that the Company purchases; changes in
domestic and foreign economic conditions (including effects from
the U.K.'s decision to exit the European Union); the
ability to bring new production capacity on line efficiently and
with good quality; outcomes of legal proceedings and claims; the
ability to realize anticipated savings from the business
optimization program and restructuring actions; the ability to
maintain or obtain adequate sources of liquidity and access to debt
markets; and other factors disclosed from time to time in the
Company's SEC filings or otherwise, including the factors
discussed in Item 1A, Risk Factors, of the Company's Annual
Report on Form 10-K and in its periodic reports on Form 10-Q. In
addition, the effects of the COVID-19 pandemic, including actions
taken by individuals, businesses, government agencies and others in
response to COVID-19, may aggravate the impact on our business of
the risk factors identified in our Annual Report on Form 10-K. The
Company undertakes no obligation to update forward-looking
statements made in this release to reflect events or circumstances
after the date of this release.
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SOURCE Briggs & Stratton Corporation