Briggs & Stratton Corp. today announced it will eliminate about 8 percent of its salaried positions, or about 200 jobs, worldwide this year. A spokeswoman for the small engine manufacturer told Small Business Times this morning she did not know how many jobs will be eliminated from the company’s Wauwatosa headquarters.
The announcement of the job cuts was made as the company reported that its sales outlook is not as rosy as it had hoped, even though the firm reported quarterly net income of $21.8 million, or 42 cents per share, which was up from $7.0 million, or 14 cents per share, a year ago. The company’s quarterly net sales jumped to $574.3 million, or $503.7 per share.
In its earnings report today, the company stated, “We are adjusting our forecasts of net income for fiscal 2006 to incorporate both today’s announcement of the headcount reduction, but more importantly, our current assessment of the direction of our business for the 2006 lawn and garden season.”
The company said it would initiate price increases to reflect its rising costs for raw materials and components. The company projects those price increases could cause its sales to drop 1 to 2 percent.
