Thursday, August 13, 2009

Briggs & Stratton Poor Explaining

Briggs & Stratton (BGG) announced that revenues and profits are off. Big ride on mowers are not selling because people do not have the money. Smaller push mowers are selling because the price points work for cash strapped consumers. Simplistic and begs too many questions. They make this comment about their outlook

“Global markets for engines are mixed at this time but we anticipate that the domestic market could grow slightly while export markets could be flat to possibly down next spring. Production levels for all products are planned to be lower in fiscal 2010 to address working capital targets”

There is no break down about global markets. There is no discussion or comment about competition. There is no comment about energy effectiveness or the fact that many lawn mowers are insanely polluting and what are we going to do about this.