Briggs & Stratton Corporation on Tuesday announced a business update related to the COVID-19 pandemic. Following is a press release from the company.
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.