Briggs & Stratton Corp. (BGG: Quote) announced Monday that it will temporarily shut down its production facility in McDonough, Georgia in order to reduce inventory levels of lawn and garden products that are produced at the facility.
Market demand for lawn and garden equipment remains soft as a result of the ongoing drought that is affecting a large portion of the United States since May 2012. Production will be suspended from October 29th to November 25, 2012; however, shipments of products and service parts to customers will continue during this time, the company said.
The company noted that plant personnel will also utilize the shutdown period to complete the movement of certain equipment from its recently closed Newbern, TN facility into the McDonough plant and to re-tool for new products for spring production.
Approximately 340 hourly employees and 200 temporary employees will be temporarily laid off during this plant shutdown, the company said.
The company said it does not anticipate that this temporary plant shutdown will have a significant impact on its previously announced estimates for fiscal year 2013 net income of $60 million to $75 million, or $1.25 to $1.55 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $1.36 per share for fiscal 2013. Analysts' estimates typically exclude special items.
 | | To receive FREE breaking news email alerts for Briggs & Stratton and others in your portfolio |
|
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News