8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 17, 2008

BRIGGS & STRATTON CORPORATION

(Exact name of registrant as specified in its charter)

Wisconsin	1-1370	39-0182330
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

12301 West Wirth Street, Wauwatosa, Wisconsin	53222
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (414) 259-5333

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On January 17, 2008, Briggs & Stratton Corporation issued a press release announcing fiscal 2008 second quarter results in the press release furnished as Exhibit 99.1.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits. The following exhibit is being furnished herewith:

99.1 Press Release dated January 17, 2008 announcing results for the second quarter of fiscal 2008.

2

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BRIGGS & STRATTON CORPORATION
	(Registrant)
Date: January 17, 2008	By:	/s/ James E. Brenn
		James E. Brenn
		Senior Vice President and Chief Financial Officer
		Duly Authorized Officer

3

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated January 17, 2008 announcing results for the second quarter of fiscal 2008.

4

EX-99.1

Exhibit 99.1

BRIGGS & STRATTON CORPORATION REPORTS RESULTS FOR THE

SECOND QUARTER OF FISCAL 2008

Investor Relations Contact:

James E. Brenn, Senior VP and Chief Financial Officer

(414) 259-5333

Milwaukee, WI January 17, 2008/PR Newswire/-Briggs & Stratton Corporation (NYSE:BGG)

Briggs & Stratton today announced second quarter fiscal 2008 consolidated net sales of $478.8 million and consolidated net income of $5.4 million or $.11 per diluted share. The second quarter of fiscal 2007 had consolidated net sales of $423.1 million and a consolidated net loss of $4.4 million or $.09 per diluted share. The $55.7 million, or 13%, increase in consolidated net sales in the second quarter was primarily due to volume improvement in most product categories. The $9.8 million improvement in second quarter consolidated net income reflects the impact of a $37.0 million gain ($25.0 million after tax) resulting from the sale of an investment in preferred stock including the final dividends paid on the preferred stock, offset by $17.7 million of warranty expense ($12.7 million after tax) for a previously announced snow engine recall. Operationally, the second quarter results were lower than last year’s second quarter. Improved margins from increased sales were offset by costs incurred in the startup of new production in facilities for power products as well as the impact of costs incurred to close an engine facility. In addition, fixed costs were higher in the second quarter due to lower production levels that resulted from our plan to produce closer to the retail season.

For the first six months of fiscal 2008, the Company had consolidated net sales of $845.5 million and a consolidated net loss of $15.0 million or $.30 per diluted share. For the same period a year ago, consolidated net sales were $761.3 million and there was a consolidated net loss of $20.8 million or $.42 per diluted share. The increase in the first six month’s consolidated net sales of the $84.2 million, or 11%, was primarily attributable to increased engine unit shipments. The $5.8 million increase in consolidated net income reflects the stock transaction that occurred in the second quarter, offset by $19.8 million of warranty expense ($13.5 million after tax) for the snow engine recall. Operationally, the six month results improved from the same period a year ago as the benefit of increased sales and lower manufacturing costs were greater than the higher expenses associated with operations startup, a plant closing and lower production levels.

Engines:

Fiscal 2008 second quarter net sales were $315.5 million versus $279.0 million for the same period a year ago, an increase of 13%. The increase resulted primarily from a 10% increase in engine unit shipments between quarters. Sales for the first half of fiscal 2008 were $524.0 million versus $468.6 million in the prior year, a 12% increase. This increase in the first half of the year also reflects a 10% increase in engine unit shipments between years. Engine unit shipment increases in the quarter reflect improved placement for the upcoming season as well as some earlier demand for engines by some original equipment manufacturers. The first six months sales also benefited somewhat from stronger summer retail demand in certain regions for lawn and garden equipment.

The second quarter of fiscal 2008 had a loss from operations of $4.9 million, down $13.4 million from the income for operations for the same period a year ago. The major reason for the decrease in income from operations was the $17.7 million warranty expense associated with the snow engine recall. Income from operations did benefit from higher unit volumes, although the volume increase skewed to smaller displacement units which generate lower gross profits. In addition, margins increased due to favorable exchange rates for Euro denominated sales.

The loss from operations for the first half of fiscal 2008 was $15.1 million, a $2.1 million decline from the loss from operations of $13.0 million for the same period a year ago. For the six months, the negative impact on income from operations from the snow engine recall was $19.8 million. Operationally, income from operations showed improvement between years due to a favorable Euro exchange rate, increased sales volume and lower manufacturing expenses.

Power Products:

Fiscal 2008 second quarter net sales were $197.0 million, a $26.6 million increase from the same period a year ago. The improvement was primarily the result of increased shipments of portable generators and pressure washers.

Net sales for the first six months of fiscal 2008 were $384.0 million, a $26.7 million increase over the same period a

year ago. The sales improvement was the result of unit shipment increases in pressure washers and certain lawn and garden products.

The loss from operations for the second quarter of fiscal 2008 was $15.6 million, a decline of $11.6 million from the loss for the same period a year ago. The increase in the loss from operations was the result of startup costs for a new plant and new product models for the lawn and garden markets that did not exist in the second quarter a year ago. In addition, manufacturing costs related to materials and components have increased and fixed costs are up because of lower utilization at certain facilities.

The loss from operations for the first six months of fiscal 2008 was $26.2 million, a $25.0 million decline from the loss from operations for the same period a year ago. As in the second quarter, increased manufacturing costs and the costs of the startups make up the majority of the operating income decline.

General:

Interest expense was lower in the second quarter of fiscal 2008 because of lower average borrowings than last year due to reduced inventories. The second quarter and year to date fiscal 2008 effective tax rates are at 28% and 32%, respectively versus the 26% and 32% used in the same respective periods last year.

Other income in the second quarter of fiscal 2008 reflects the gain on the redemption of an investment in preferred stock and the associated dividends. There was no dividend income in the second quarter last year, but there was $2.0 million of dividends in other income for the first half of last year.

Outlook:

Our net income forecast for the year is $60 to $68 million or $1.21 to $1.37 per diluted share for the full year. The estimate is based on the assumption that consolidated net sales will grow approximately 7% to 8% between years, primarily due to higher volume in the Engines Segment. Operating income margins are projected to be approximately 4.0%, and interest expense and other income are forecasted at $36 million and $38 million, respectively. The effective tax rate for the full year is projected to be in the range of 32% to 34%.

The top end of the projected range for net income was increased by $3.0 million to reflect the after tax benefit of the preferred stock transaction of $25 million. This benefit was offset by two factors. The first offset is a $9.0 million after tax benefit for dividends on the preferred stock that had already been in our forecast for fiscal 2008. The second offset is the $13 million after tax impact of the snow engine recall. The bottom end of the range remains unchanged because we feel we continue to face uncertain market conditions for the remainder of the fiscal year.

The Company will host a conference call at 10:00 AM (EST) on January 17, 2008 to review this information. A live web cast of the conference call will be available on its corporate website: http://www.briggsandstratton.com/shareholders. Also available is a dial-in number to access the call real-time at (866) 802-4328. A replay will be offered beginning approximately two hours after the call ends and will be available for one week. Dial (888) 266-2081 to access the replay. The access code will be 1182513.

This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. The words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “intend”, “may”, “objective”, “plan”, “project”, “seek”, “think”, “will”, and similar expressions are intended to identify forward-looking statements. The forward-looking statements are based on the Company’s current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully forecast demand for our products and appropriately adjust our manufacturing and inventory levels; changes in our operating expenses; changes in interest rates; the effects of weather on the purchasing patterns of consumers and original equipment manufacturers (OEMs); actions of engine manufacturers and OEMs with whom we compete; the seasonal nature of our business; changes in laws and regulations, including environmental, tax, pension funding and accounting standards; work stoppages or other consequences of any deterioration in our employee relations; work stoppages by other unions that affect the ability of suppliers or customers to manufacture; acts of war or terrorism that may disrupt our business operations or those of our customers and suppliers; changes in customer and OEM demand; changes in prices of raw materials and parts that we purchase; changes in domestic economic conditions, including housing starts and changes in consumer disposable income; changes in foreign economic conditions, including currency rate fluctuations; the actions of customers of our OEM customers; the ability to bring new productive capacity on line efficiently and with good quality; the ability to successfully realize the maximum market value of assets that may require disposal if products or production methods change; new facts that come to light in the future course of litigation proceedings which could affect our assessment of those matters; and other factors that may be disclosed from time to time in our SEC filings or otherwise, including the factors discussed in Item 1A, Risk Factors, of the Company’s Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Some or all of the factors may be beyond our control. We caution you that any forward-looking statement reflects only our belief at the time the statement is made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made.

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Statements of Earnings for the Fiscal Periods Ended December

(In Thousands, except per share data)

(Unaudited)

	Second Quarter						Six Months
	2007			As Adjusted 2006			2007			As Adjusted 2006
NET SALES	$	478,837		$	423,059		$	845,506		$	761,308
COST OF GOODS SOLD		432,220			353,779			755,445			645,749
Gross Profit on Sales		46,617			69,280			90,061			115,559
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		66,430			64,214			130,570			129,896
Income (Loss) from Operations		(19,813	)		5,066			(40,509	)		(14,337	)
INTEREST EXPENSE		(10,610	)		(11,829	)		(19,583	)		(20,866	)
OTHER INCOME, Net		37,995			921			38,017			4,378
Income (Loss) before Provision for Income Taxes		7,572			(5,842	)		(22,075	)		(30,825	)
PROVISION (CREDIT) FOR INCOME TAXES		2,134			(1,490	)		(7,060	)		(9,995	)
Net Income (Loss)	$	5,438		$	(4,352	)	$	(15,015	)	$	(20,830	)
Average Shares Outstanding		49,536			50,583			49,543			49,983
BASIC EARNINGS (LOSS) PER SHARE	$	0.11		$	(0.09	)	$	(0.30	)	$	(0.42	)
Diluted Average Shares Outstanding		49,637			50,583			49,543			49,983
DILUTED EARNINGS (LOSS) PER SHARE	$	0.11		$	(0.09	)	$	(0.30	)	$	(0.42	)

Segment Information

(In Thousands)

(Unaudited)

	Second Quarter						Six Months
	2007			As Adjusted 2006			2007			As Adjusted 2006
NET SALES:
Engines	$	315,537		$	279,018		$	523,953		$	468,614
Power Products		196,995			170,406			383,986			357,293
Inter-Segment Eliminations		(33,695	)		(26,365	)		(62,433	)		(64,599	)
Total *	$	478,837		$	423,059		$	845,506		$	761,308
* Included sales originating in foreign countries of	$	52,551		$	47,204		$	98,396		$	93,189
GROSS PROFIT ON SALES:
Engines	$	43,421		$	55,344		$	78,675		$	81,960
Power Products		2,536			13,477			10,561			33,730
Inter-Segment Eliminations		660			459			825			(131	)
Total	$	46,617		$	69,280		$	90,061		$	115,559
INCOME (LOSS) FROM OPERATIONS:
Engines	$	(4,857	)	$	8,585		$	(15,085	)	$	(12,981	)
Power Products		(15,616	)		(3,978	)		(26,249	)		(1,225	)
Inter-Segment Eliminations		660			459			825			(131	)
Total	$	(19,813	)	$	5,066		$	(40,509	)	$	(14,337	)

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets as of the End of Fiscal December

(In Thousands)

(Unaudited)

	2007			As Adjusted 2006
CURRENT ASSETS:
Cash and Cash Equivalents	$	48,921		$	36,593
Accounts Receivable, Net		342,410			306,473
Inventories		636,281			777,404
Deferred Income Tax Asset		52,695			61,632
Other		38,726			24,554
Total Current Assets		1,119,033			1,206,656
OTHER ASSETS:
Goodwill		250,107			251,885
Investments		18,170			46,781
Prepaid Pension		105,032			193,641
Deferred Loan Costs, Net		3,748			3,722
Other Intangible Assets, Net		91,621			93,506
Other Long-Term Assets, Net		6,921			7,283
Total Other Assets		475,599			596,818
PLANT AND EQUIPMENT:
At Cost		1,008,428			1,032,868
Less—Accumulated Depreciation		614,959			605,361
Plant and Equipment, Net		393,469			427,507
	$	1,988,101		$	2,230,981
CURRENT LIABILITIES:
Accounts Payable	$	130,105		$	152,916
Short-Term Borrowings		281,059			273,514
Current Maturity on Long-Term Debt		—			81,056
Accrued Liabilities		172,857			160,317
Total Current Liabilities		584,021			667,803
OTHER LIABILITIES:
Deferred Income Tax Liability		38,942			146,064
Accrued Pension Cost		40,176			26,868
Accrued Employee Benefits		20,293			16,400
Accrued Postretirement Health Care Obligation		185,997			82,716
Other Long-Term Liabilities		36,307			21,787
Long-Term Debt		266,197			302,630
Total Other Liabilities		587,912			596,465
SHAREHOLDERS’ INVESTMENT:
Common Stock and Additional Paid-in Capital		76,100			72,303
Retained Earnings		1,074,296			1,107,732
Accumulated Other Comprehensive Income (Loss)		(122,349	)		3,702
Treasury Stock, at Cost		(211,879	)		(217,024	)
Total Shareholders’ Investment		816,168			966,713
	$	1,988,101		$	2,230,981

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

	Six Months Ended Fiscal December
	2007			As Adjusted 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$	(15,015	)	$	(20,830	)
Depreciation and Amortization		34,930			36,410
Stock Compensation Expense		3,261			4,896
Loss (Gain) on Disposition of Plant and Equipment		(404	)		174
Gain on Sale of Investment		(36,960	)		—
Provision for Deferred Income Taxes		465			(4,728	)
Increase in Accounts Receivable		(14,933	)		(32,971	)
Increase in Inventories		(83,498	)		(215,389	)
Decrease in Other Current Assets		8,797			10,515
Decrease in Accounts Payable and Accrued Liabilities		(52,329	)		(13,231	)
Other, Net		(6,957	)		(6,039	)
Net Cash Used in Operating Activities		(162,643	)		(241,193	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Plant and Equipment		(34,177	)		(29,866	)
Proceeds Received on Disposition of Plant and Equipment		523			442
Proceeds Received on Sale of Investment		66,011			—
Other, Net		(503	)		—
Net Cash Provided by (Used in) Investing Activities		31,854			(29,424	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings (Repayments) on Loans and Notes Payable		159,920			270,040
Issuance Cost of Amended Revolver		(1,286	)		—
Dividends		(10,901	)		(11,267	)
Stock Option Exercise Proceeds and Tax Benefits		991			750
Treasury Stock Purchases		—			(48,232	)
Net Cash Provided by Financing Activities		148,724			211,291
EFFECT OF EXCHANGE RATE CHANGES		1,517			828
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		19,452			(58,498	)
CASH AND CASH EQUIVALENTS, Beginning		29,469			95,091
CASH AND CASH EQUIVALENTS, Ending	$	48,921		$	36,593