Briggs & Stratton announces restructuring changes that will affect 475 employees

Briggs & Stratton announced that beginning in the 2016 lawn & garden season, it will narrow its assortment of lower-priced Snapper consumer lawn and garden equipment and consolidate its products manufacturing facilities in order to further reduce costs. The company will close its McDonough, Georgia location and consolidate production into existing facilities in Wisconsin and New York. Production is estimated to be completed in McDonough and transitioned to the other facilities during the first quarter of calendar 2015. changes will affect approximately 475 employees over the course of the next several months. Moving production of pressure washers, riding lawn tractors and snow throwers to the Wauwatosa, Wisconsin facility will add approximately 220 new full time positions and up to approximately 150 temporary seasonal employees. The company anticipates total restructuring charges related to these actions of approximately $30M-$37M, including non-cash write-downs of approximately $15M-$20M, to be recorded during fiscal 2015. Total cash costs related to these actions are anticipated to be approximately $15M-$17M, with the majority of the cash costs being incurred in fiscal 2015. Total annual cost savings as a result of these actions are anticipated to be approximately $15M-$20Mwith approximately $5M-$7M expected to be realized in fiscal 2015 and the remainder realized in fiscal 2016 upon completion of the transition in the fourth quarter of fiscal 2015. Products segment sales are estimated to be lower by approximately $20M-$25M in fiscal 2015 and $35M-$45Mannually beginning in fiscal 2016 as a result of these actions. The company does not expect a material change in the sales or production volumes of engines as a result of this announcement.