1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 27, 1998March 28, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period fromfrom_______________ to ------------- -------------_______________
Commission file number 1-1370
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BRIGGS & STRATTON CORPORATION
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(Exact name of registrant as specified in its charter)
Wisconsin 39-0182330
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
12301 West Wirth Street, Wauwatosa, Wisconsin 53222
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(Address of Principal Executive Offices) (Zip Code)
414/259-5333
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
---- --------- -----
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at
Class February 1,May 7, 1999
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COMMON STOCK, par value $0.01 per share 23,464,01523,284,999 Shares
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
INDEX
Page No.
--------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets -
December 27, 1998March 28, 1999 and June 28, 1998 3
Consolidated Condensed Statements of Income -
Three Months and SixNine Months ended
December 27,March 28, 1999 and March 29, 1998 and December 28, 1997 5
Consolidated Condensed Statements of Cash Flow -
SixNine Months ended December 27,March 28, 1999 and
March 29, 1998 and
December 28, 1997 6
Notes to Consolidated Condensed Financial
Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 11
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 6. Exhibits and Reports on Form 8-K 1112
Signatures 12
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
ASSETS
December 27,March 28, June 28,
1999 1998
1998
------------ ----------------- --------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 2,24326,166 $ 84,527
Receivables, net 302,050342,958 136,629
Inventories -
Finished products and parts 105,97465,892 58,975
Work in process 61,64456,662 45,217
Raw materials 4,8855,372 3,684
-------- --------
Total inventories 172,503127,926 107,876
Future income tax benefits 31,85435,776 31,287
Prepaid expenses 24,86029,660 21,727
-------- --------
Total current assets 533,510562,486 382,046
-------- --------
OTHER ASSETS:
Marketable securities 1,680 -2,100 --
Deferred income tax assets 6,5795,221 9,555
Capitalized software 7,4727,545 9,881
-------- --------
Total other assets 15,73114,866 19,436
-------- --------
PLANT AND EQUIPMENT -
Cost 829,359842,040 812,428
Less - Accumulated depreciation 433,395444,495 420,501
-------- --------
Total plant and equipment, net 395,964397,545 391,927
-------- --------
$945,205$974,897 $793,409
======== ========
The accompanying notes are an integral part of these statements.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (Continued)
(In thousands)
LIABILITIES & SHAREHOLDERS' INVESTMENT
December 27,March 28, June 28,
1999 1998
1998
------------ -------- -------
(Unaudited)
CURRENT LIABILITIES:
Accounts payable $ 80,162$106,223 $ 76,915
Domestic notes payable 135,02081,025 4,700
Foreign loans 22,25418,952 14,336
Current maturities of long-term debt 15,000 15,000
Accrued liabilities 107,955131,372 101,465
Dividends payable 6,765 -6,762 --
Federal and state income taxes 23,09629,200 10,529
-------- --------
Total current liabilities 390,252388,534 222,945
-------- --------
OTHER LIABILITIES:
Deferred revenue on sale of plant and equipment 15,84815,823 15,893
Accrued pension cost 21,88019,494 26,477
Accrued employee benefits 12,84312,984 12,571
Accrued postretirement health care obligation 69,99270,691 70,933
Long-term debt 128,205128,256 128,102
-------- --------
Total other liabilities 248,768247,248 253,976
-------- --------
SHAREHOLDERS' INVESTMENT:
Common stock-
Authorized 60,000 shares, $.01 par value,
Issued 28,927 shares 289 289
Additional paid-in capital 37,02937,044 37,776
Retained earnings 549,265584,316 533,805
Unearned compensation on restricted stock (263) -
Unearned loss(249) --
Unrealized gain on marketable securities (64) -192 --
Cumulative translation adjustments (1,341)(1,998) (2,110)
Treasury stock at cost, 5,7315,743 and 5,103 shares,
respectively (278,730)(280,479) (253,272)
-------- --------
Total shareholders' investment 306,185339,115 316,488
-------- --------
$945,205$974,897 $793,409
======== ========
The accompanying notes are an integral part of these statements.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Ended SixNine Months Ended
------------------ ----------------
Dec. 27 Dec.-------------------
March 28, Dec. 27 Dec.March 29, March 28 March 29,
1999 1998 19971999 1998
1997
-------- -------- -------- --------------- ------- ------- -------
NET SALES $359,943 $308,481 $583,924 $479,038$476,259 $469,055 $1,060,183 $948,093
COST OF GOODS SOLD 288,472 257,584 474,841 401,730373,428 374,282 848,269 776,012
-------- -------- ------------------ --------
Gross profit on sales 71,471 50,897 109,083 77,308102,831 94,773 211,914 172,081
ENGINEERING, SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 29,107 30,065 58,355 59,23932,140 33,103 90,495 92,342
-------- -------- ------------------ --------
Income from operations 42,364 20,832 50,728 18,06970,691 61,670 121,419 79,739
INTEREST EXPENSE (4,748) (5,248) (8,158) (9,042)(5,025) (5,870) (13,183) (14,912)
OTHER INCOME, net 1,801 1,020 3,948 3,3351,250 1,908 5,198 5,243
-------- -------- ------------------ --------
Income before provision
for income taxes 39,417 16,604 46,518 12,36266,916 57,708 113,434 70,070
PROVISION FOR INCOME TAXES 14,780 6,310 17,440 4,70025,103 21,930 42,543 26,630
-------- -------- ------------------ --------
Net income $ 24,63741,813 $ 10,29435,778 $ 29,07870,891 $ 7,66243,440
======== ======== ================== ========
EARNINGS PER SHARE DATA -
Average shares outstanding 23,308 24,903 23,467 25,034
======== ======== ======== ========23,271 24,514 23,399 24,861
====== ====== ====== ======
Basic earnings per share $ 1.061.80 $ .411.46 $ 1.243.03 $ .31
======== ======== ======== ========1.75
====== ====== ====== ======
Diluted average shares outstanding 23,481 25,054 23,588 25,189
======== ======== ======== ========23,357 24,600 23,480 25,008
====== ====== ====== ======
Diluted earnings per share $ 1.051.79 $ .411.45 $ 1.233.02 $ .30
======== ======== ======== ========1.74
====== ====== ====== ======
CASH DIVIDENDS PER SHARE $ .29 $ .28 $ .58.87 $ .56
======== ======== ======== ========.84
====== ====== ====== ======
The accompanying notes are an integral part of these statements.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
SixNine Months Ended
--------------------------------
December 27, December----------------------------
March 28, March 29,
1999 1998
1997
------------ -------------------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 29,07870,891 $ 7,66243,440
Adjustments to reconcile net income to net
cash used in operating activities -
Depreciation 23,698 22,56735,706 35,523
Amortization of discount on long-term debt 103 103154 154
Amortization of compensation on
restricted stock 24 -39 --
Loss on disposition of plant and equipment 195 736
Provision391 984
Provision(Benefit) for deferred income taxes 2,450 (316)(278) 473
Change in operating assets and liabilities -
Increase in accounts receivable (166,692) (115,394)(207,600) (172,156)
Increase in inventories (64,625) (87,282)(20,048) (8,634)
(Increase)Decrease in prepaid expenses (3,252) 1,927
Increase(decrease)(8,052) 1,229
Increase in accounts payable
and accrued liabilities 30,557 (3,133)87,009 40,704
Other, net (4,262) (457)(5,882) (2,578)
--------- ---------
Net cash used in operating activities (152,726) (173,587)(47,670) (60,861)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to plant and equipment (29,881) (26,124)(43,903) (34,192)
Proceeds received on sale of plant and equipment 1,382 3361,521 360
--------- ---------
Net cash used in investing activities (28,499) (25,788)(42,382) (33,832)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on domestic and foreign loans 138,714 142,90581,417 83,220
Dividends (13,618) (13,963)(20,380) (20,802)
Purchase of common stock for treasury (35,614) (43,501)(58,006) (66,433)
Proceeds from exercise of stock options 8,897 8,04528,682 9,027
--------- ---------
Net cash provided by financing activities 98,379 93,48631,713 5,012
--------- ---------
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
CHANGES ON CASH AND CASH EQUIVALENTS 562 (587)(22) (562)
--------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (82,284) (106,476)(58,361) (90,243)
CASH AND CASH EQUIVALENTS, beginning 84,527 112,859
--------- ---------
CASH AND CASH EQUIVALENTS, ending $ 2,24326,166 $ 6,38322,616
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid $ 7,55914,751 $ 4,80714,809
========= =========
Income taxes paid $ 2,93723,678 $ 3,7139,144
========= =========
The accompanying notes are an integral part of these statements.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
The accompanying unaudited consolidated condensed financial statements
have been prepared in accordance with the rules and regulations of the
Securities and Exchange Commission applicable to interim statements and
therefore do not include all information and footnotes necessary for a fair
presentation of financial position, results of operations and cash flows in
conformity with generally accepted accounting principles. However, in the
opinion of the Company, adequate disclosures have been presented to make the
information not misleading, and all adjustments necessary to present fair
statements of the results of operations and financial position have been
included. All of these adjustments are of a normal recurring nature. These
condensed financial statements should be read in conjunction with the financial
statements and the notes thereto which were included in the Company's latest
Annual Report on Form 10-K.
The caption entitled Marketable Securities represents stock received in
the sale of the Company's software business at the end of the first quarter of
fiscal 1999. These securities are being classified as available-for-sale and are
being reported at fair market value. The unrealized gain or loss incurred on this stock
wasis recorded as Unearned LossUnrealized Gain on Marketable Securities in the Shareholders'
Investment section of the balance sheet.
The Company's Board of Directors authorized awards of a total of 8,000
shares of restricted stock to key employees in August 1998 from the Company's
treasury stock. These shares shall be forfeitable until they become vested upon
the first to occur of the following: five years from the award date; a change in
control; or termination of employment by reason of retirement, disability or
death. The market value of these shares was recorded as Unearned Compensation on
Restricted Stock at the award date and is being amortized to compensation
expense over the five years.
The Company adopted Financial Accounting Standard (FAS) No. 130,
Reporting Comprehensive Income, in the quarter ended September 1998. This
statement requires the reporting of comprehensive income in addition to net
income from operations. Comprehensive income is a more inclusive financial
reporting method that includes disclosure of certain financial information that
historically has not been recognized in the calculation of net income. The
Company has foreign currency translation adjustments accounted for under FAS
Statement No. 52 which fall within this definition. Total comprehensive income
is as follows (in thousands):
Three Months Ended SixNine Months Ended
------------------ ----------------
Dec. 27 Dec.------------------
Mar. 28 Dec. 27 Dec.Mar. 29 Mar. 28 Mar. 29
1999 1998 19971999 1998 1997
------- ------- ------- -------
Net income $24,637 $10,294 $29,078 $ 7,66241,813 $ 35,778 $ 70,891 $ 43,440
Foreign currency translation
adjustments 243 (422) 769 (665)
Unearned loss(657) (14) 112 (679)
Unrealized gain on marketable
securities, (net of tax) (64) - (64) -256 -- 192 --
-------- ------- ------- --------------- -------- --------
Total comprehensive income $ 24,81641,412 $ 9,872 $29,78335,764 $ 6,99771,195 $ 42,761
======== ======= ======= =============== ======== ========
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following is management's discussion and analysis of the Company's
financial condition and results of operations for the periods included in the
accompanying consolidated condensed financial statements:
RESULTS OF OPERATIONS
SALES
Net sales for the secondthird fiscal quarter increased $51$7 million or 17%2%
compared to the same period of the previous year. This increase resulted
primarily from the following factors: a $50$28 million increase in sales dollars
resulting from a 17% increase in engine unit shipments, and $6 million from
increased prices, offset by $5 million reduction due to a
mix change in engines sold.
Net sales for the six months ended December 1998 increased $105 million
or 22% when comparedsold to the first half of the prior year. This increase resulted
from the same factors discussed above for the quarter. There was a $115 million
increase in sales dollars due to a 27% increase in engine unit shipments, and $6higher priced units, $7 million from increased
prices, offset by a $27 million decrease in sales dollars resulting from an 8%
decrease in engine unit shipments.
Net sales for the nine months ended March 1999 increased $112 million
or 12% when compared to the first nine months of the prior year. This increase
was due to an $81 million increase in sales dollars resulting primarily from an
8% increase in engine unit shipments, a favorable mix change in engines sold of
$16
million.$17 million, and $14 million from increased prices.
GROSS PROFIT
The gross profit percentage increased to 20%22% in the current quarter
from 16%20% in the preceding year's secondthird quarter. This increase resulted primarily
from the $6$7 million of price increases, absorption of $5 million of fixed
expenses over more units produced, of $6 million and lower material costs forof $4 million caused
by lower aluminum of $2 million,cost, the major raw material used in engines.
The gross profit marginspercentage for the six-monthnine-month period increased to 19%20%
in the current year from 16%18% in the preceding year. The increase resulted
primarily from $6the following factors: $14 million of price increases, $6$7 million
attributed to the benefit of greaterhigher production induring the second quarter, lower costs for aluminum of $3and third
quarters and $13 million and $1 million ofin lower costs for purchased parts and engines caused by favorable
exchange rates.and raw
materials, of which $7 million was due to lower aluminum costs. Offsetting these
improvements were a mix shift to lower margin engines of $8 million and
increased overhead spending of $5 million.
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
This category decreased by 3% or $1 million between the secondthird fiscal
quarters of 1999 and 1998. This resulted from a $3 million decrease in costs
related to the software business the Company sold atearlier in the end of the first
quarter of the current fiscal year,
offset by increased advertising costs of $1
million and a $1$2 million increase in profit sharing expense due to improved
results.
The 1%2% or $1$2 million decrease for the comparative six-month periodnine-month periods
was due primarily to the same factors discussed above for the quarter. There was
a $3$6 million decrease in costs related to the software business and reduced
expenses of $1 million related to the implementation of the Company's new
computer system. These decreases were offset by $1a $2 million increasesincrease in both
advertising and profit sharing expenses.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
INTEREST EXPENSE
Interest expense decreased $1 million in the three-month comparison and
$1$2 million in the six-monthnine-month comparison. These decreases were the result of
lower average interest rates on working capital borrowings and the repayment of
$15 million of long-term debt at the end of fiscal year 1998.
OTHER INCOME
This category increased $1 million in both the three-month and
six-month periods. In each period, the primary change is due to reductions in
the loss on the disposition of plant and equipment.
PROVISION FOR INCOME TAXES
The effective rate used in both the three-month and six-monthnine-month periods
for the current year was 37.5%. This is management's estimate of what the rate
will be for the entire 1999 fiscal year. Last year's rate was 38% in both
periods; however, the final effective rate for the entire 1998 fiscal year was
37.6%.
LIQUIDITY AND CAPITAL RESOURCES
Cash used in operating activities for the six-monthnine-month period was $153$48
million in fiscal 1999 and $174$61 million in 1998. In the six-monthnine-month period, net
income before depreciation provided cash of $53$107 million for fiscal 1999 and $30$79
million for fiscal 1998. Accounts receivable increased $167$208 million in fiscal
1999 and $115$172 million in fiscal 1998. The increase in accounts receivable was
caused by increased sales nearin fiscal 1999 and the endtiming of the six months ended December 1998.payments. Inventory
increased $65$20 million in fiscal 1999 compared to $87$9 million in fiscal 1998. Increased sales account for the decreaseThe
increase in the buildup of inventories.inventories is attributed to increased production levels in fiscal
1999. Accounts payable and accrued liabilities increased $31$87 million in fiscal
1999 compared to a decrease of $3and $41 million in fiscal 1998. The $31$46 million increase was primarily due
to a $22$27 million increase in accounts payable and an $8 million increase in
accrued liabilities as a result of the timing of payments, and an $11a $6 million
increase in federal and state income
taxes payablethe warranty reserve due to the higher level of earnings.increased sales volume.
Cash used in investing activities totaled $28$42 million in the six-monthnine-month
period and $26$34 million the same period of the preceding year. Additions to plant
and equipment primarily made up the cash used in each year.
Financing activities provided $98$32 million of cash in 1999 compared to
$93$5 million in 1998. Net borrowings were $139 million and $143 million,
respectively. The Company used $36$58 million in the current year and $44$66
million in the preceding year for its stock repurchase program. The Company also
received an additional $20 million in proceeds from stock options exercised in
fiscal 1999.
FUTURE LIQUIDITY AND CAPITAL RESOURCES
The Company completed the share repurchase program authorized by the Board of Directors in
fiscal 1997 for $300 million of its common stock was completed in the second
quarter of fiscal 1999. In January 1999, the Board of Directors approved a
repurchase of up to 1.3 million additional shares of the Company's common stock. Purchases will be made from time to timestock
in open market or private transactions. Under this authorization, stock
repurchases totaling .4 million shares were made during the third quarter in
open market transactions. The latest share repurchase authorization is intended
to minimize dilution from shares issued for employee benefit plans and will be
funded from available cash.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Management expects capital expenditures for reinvestment in equipment
and new products to total $70 million in fiscal 1999.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
On April 21, 1999, the Company's Board of Directors approved capital
expenditures of $95 million for fiscal 2000. These anticipated expenditures
include a significant amount for capacity increases, as well as continuing
reinvestment in equipment and new products. The Company expects to increase its
engine capacity by approximately 10%-15% by fiscal 2001.
The Company currently intends to increase future cash dividends per
share at a rate approximating the inflation rate, subject to the discretion of
its Board of Directors and requirements of applicable law.
Management believes that available cash, the credit facility, cash
generated from operations, existing lines of credit and access to public debt
markets will be adequate to fund the Company's capital requirements for the
foreseeable future.
OUTLOOK
Based on customer expectations, orders actually placedAt this time the Company's business continues to be very strong despite
slower retail sales of lawn and favorable
econometric forecasts, and assuming normalgarden equipment. The slower start of the spring
weather, the Company expects
higherselling season is a concern, but last year's early spring sales and earnings for the full fiscal year.
Overall, thewere unusually
strong. Retail sales of other products, particularly generators, are strong. The
Company expects that engine unit sales will reflect a small increase in fiscal
1999 compared to fiscal 1998. Historically,Finished engine inventories are low, and the
Company has builtplans to continue high production rates in order to restore the engine
inventory in the first six months of the fiscal year and shipped much
of this inventory in the second half of the fiscal year, primarily in the third
quarter. The Company expects to ship fewer engines in the second half of this
fiscal year because of lower inventories that were caused by increased shipments
in the first six months.a normal level.
In fiscal 1998 the Company experienced adverse effects on revenue and
gross profit as a result of the strong U.S. dollar compared to European
currencies. Assuming the exchange rates of the U.S. dollar against the European
currencies remain consistent with December 1998,where they were in third fiscal quarter of
1999, management believes that the adverse effect on revenue and gross profit
for fiscal 1999 will be significantly less in fiscal
1999 than in fiscal 1998.less.
OTHER MATTERS
Emissions
Environmental Protection Agency (EPA) currently expects to finalize thefinalized its Phase II regulation
for non hand-held small engines in March of 1999. EPA has
informed industry that theThe final regulation will imposeimposes
more stringent standards over the useful life of the engine. The standards will
be phased in from 2001 to 2005 for Class II engines and from 2003 to 2008 for
Class I engines. It is not anticipated that this will have a material effect on
the financial condition or results of operations of the Company.
Year 2000 Issues
The Company has completed implementation of its new company-wide
information system. All business transactions are being processed on the new
system, which addressed the great majority ofaddresses all significant information technology year 2000
computer issues. Data containing year 2000 dates such as orders and preventive
maintenance schedules have been entered and accepted by the new system. The
Company has initiated a business recovery program at an off-site location which
will be used for complete testing of the new company-wide information system.
This testing is expected to be completed by the middle of the 1999 calendar
year. The Company will also be establishing an on-site stand alone system for
additional testing of the integrated information system.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Project expenditures to date total $29$30 million. The Company expects to
incur an additional $6 million of incremental costs, running through the 2002
fiscal year, because of related projects.
The Company is nearing completion ofcompleted the assessment phase of its non-information
technology systems during the first quarter of the 1999 calendar year. An
outside company was retained to audit these systems and to recommend remedial
actions for any non-compliant systems. These activities will be completed during
the second and third quarters of the 1999 calendar year. Based on the assessment
completed to date,and audit, the Company does not anticipate the need to develop an extensive
contingency plan for non-information systems, so it is not expecting to incur
material incremental costs to do this.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIESDuring the second and third quarters of calendar 1999 the Company will
be following up with suppliers who have not yet responded to the Company's
survey and contact companies who did respond to the survey but received a low
readiness ranking from the Company. Audits of suppliers will also be conducted
to verify their readiness. Contingency plans will be developed for suppliers
based on the information received in the follow-up contacts.
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements in Management's Discussion and Analysis of Financial
Condition and Results of Operations may contain 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", "objective", and "think" or
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 effects of weather on the purchasing patterns of the Company's
customers and end use purchasers of the Company's engines; the seasonal nature
of the Company's business; actions of competitors; changes in laws and
regulations, including accounting standards; employee relations; customer
demand; prices of purchased raw materials and parts; domestic economic
conditions, including housing starts and changes in consumer disposable income;
foreign economic conditions, including currency rate fluctuations; the ability
of the Company's customers and suppliers to meet year 2000 compliance; and
unanticipated internal year 2000 issues. Some or all of the factors may be
beyond the Company's control.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes since the September 8, 1998 filing
of the Company's Annual Report on Form 10-K.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The information required by this item was previously reported in the
Company's Form 10-Q for the first quarter ended September 27, 1998.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
Exhibit
Number Description
------------- -----------
10.1 Separation Agreement*
10.2 Agreement with Executive Officer*
11 Computation of Earnings Per Share of Common Stock*
12 Computation of Ratio of Earnings to Fixed Charges*
27 Financial Data Schedule, December 27, 1998*March 28, 1999*
*Filed herewith
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
(b) Reports on Form 8-K.
There were no reports on Form 8-K for the secondthird quarter ended December
27, 1998.March 28,
1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BRIGGS & STRATTON CORPORATION
-----------------------------
(Registrant)
Date: February 8,May 7, 1999 /s/ J. E. Brenn
--------------------------------------------------------------------------------------
J. E. Brenn
Senior Vice President and Chief Financial Officer
Date: February 8,May 7, 1999 /s/ T. J. Teske
---------------------------------------------------------------------------------------
T. J. Teske
Controller
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
EXHIBIT INDEX
Exhibit
Number Description
------ -----------
10.1 Separation Agreement*
10.2 Agreement with Executive Officer*
11 Computation of Earnings Per Share of Common Stock*
12 Computation of Ratio of Earnings to Fixed Charges*
27 Financial Data Schedule*
Exhibit
Number Description
------- -----------
10.1 Agreement with Executive Officer*
11 Computation of Earnings Per Share of Common Stock*
12 Computation of Ratio of Earnings to Fixed Charges*
27 Financial Data Schedule, March 28, 1999*
* Filed herewith.
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