8-K

UNITED STATES

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 14, 2010

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 14, 2010, Briggs & Stratton Corporation issued a press release announcing results for the second quarter of fiscal 2010 in the press release furnished as Exhibit 99.1.

Cautionary Statement on Forward-Looking Statements

This Current Report on Form 8-K 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”, “could”, “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; the ability of ourselves and our customers to secure adequate working capital funding and meet related covenants; 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 consumer confidence; changes in the market value of the assets in our defined benefit pension plan and any related funding requirements; 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.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

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 14, 2010 announcing results for the second quarter of fiscal 2010.

3

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 14, 2010	By:	/s/ James E. Brenn
		James E. Brenn
		Senior Vice President and Chief Financial Officer
		Duly Authorized Officer

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated January 14, 2010 announcing results for the second quarter of fiscal 2010.

5

EX-99.1

Exhibit 99.1

Investor Relations Contact:

              James E. Brenn, Senior VP and Chief Financial Officer

              (414) 259-5333

BRIGGS & STRATTON CORPORATION REPORTS RESULTS FOR

THE SECOND QUARTER OF FISCAL 2010

MILWAUKEE, WI January 14, 2010/PR Newswire/-Briggs & Stratton Corporation (NYSE:BGG)

Briggs & Stratton today announced second quarter fiscal 2010 consolidated net sales of $393.0 million and consolidated net income of $3.0 million or $0.06 per diluted share. The second quarter of fiscal 2009 had consolidated net sales of $477.5 million and consolidated net income of $3.2 million or $0.06 per diluted share. Consolidated net sales decreased $84.5 million between years, with both reporting segments experiencing lower sales, primarily the result of lower unit volumes. Consolidated net income was fairly consistent between years despite the sales decline. This result reflects better margins caused by lower manufacturing costs and lower engineering, selling, general and administrative costs.

For the first six months of fiscal 2010, the company had consolidated net sales of $717.7 million and a consolidated net loss of $5.7 million or $0.12 per diluted share. For the same period a year ago, consolidated net sales were $935.6 million and consolidated net income was $1.2 million or $0.02 per diluted share. The decrease in the first six months’ consolidated net sales of $217.9 million was attributable to both reporting segments experiencing lower sales, primarily the result of lower unit volumes. Consolidated net income declined by $6.9 million between years resulting from lower volumes of product both shipped and manufactured, offset in part by manufacturing and operating costs that were lower than in the same period a year ago.

Engines:

Fiscal 2010 second quarter net sales were $274.3 million versus $339.3 million for the same period a year ago, a decrease of 19%. The decrease resulted primarily from a 15% decrease in engine unit shipments between quarters driven by lower shipments for lawn and garden applications as some OEMs are delaying deliveries of engines to control their inventory investment ahead of an uncertain market environment for the spring of 2010. In addition, engine requirements for portable generators were down due to the lack of any significant weather events and engine shipments for snow thrower applications were down because of shifts in placement.

Net sales for the first half of fiscal 2010 were $484.7 million versus $597.9 million in the prior year, a 19% decrease. This decrease reflects an 18% decrease in engine unit shipments between years. The first six months sales decline in engine unit volume resulted from primarily the same reasons discussed for the second quarter in addition to light first quarter sales of engines because 2009 summer retail demand for lawn and garden equipment was soft and did not generate the same level of engine reorders that occurred in the prior year.

The second quarter of fiscal 2010 had income from operations of $18.0 million versus $22.0 million from the same period a year ago. The decrease of $4.0 million in income from operations reflects the impact of a 19% revenue decrease and a 6% decrease in production volume offset by lower manufacturing and operating costs, resulting primarily from lower commodity costs and planned cost savings initiatives.

Income from operations for the first half of fiscal 2010 was $12.1 million, a $4.4 million decrease from income from operations of $16.5 million for the same period a year ago. The decrease of $4.4 million in income from operations was the result of a 19% revenue decrease and a 10% decrease in production volume offset by the same factors described in the quarter.

Power Products:

Fiscal 2010 second quarter net sales were $156.6 million, a $35.4 million decrease from the $192.0 million in the same period a year ago. The lower net sales were primarily the result of a decrease in shipments of portable generator product. Replenishment demand that occurred because of major weather events last year was not required in the current year due to a lack of weather events. In general, all lawn and garden product volumes were

less than those in the same period a year ago, except for stronger snow thrower shipments. All levels of the lawn and garden distribution channel appear to be managing to lower inventory levels ahead of the spring of 2010 retail season.

Net sales for the first six months of fiscal 2010 were $320.2 million, a $127.4 million decrease over the same period a year ago. The sales decline was primarily the result of a decrease in sales of portable generators due to no hurricanes making landfall in the United States in the first half of fiscal 2010. Other than a small increase in pressure washer shipments, the other product offerings in this reporting segment had volume declines between years.

The loss from operations for the second quarter of fiscal 2010 was $4.5 million, an improvement of $4.1 million over the loss for the same period a year ago. The improvement in the loss from operations for the quarter was the result of lower manufacturing costs, primarily related to lower commodity costs and planned cost saving initiatives. These improvements were partially offset by lower sales, lower production volumes and $1.7 million of expenses associated with the previously announced closing of the Jefferson, Wisconsin manufacturing facility.

The loss from operations for the first six months of fiscal 2010 was $0.9 million, a $5.1 million improvement over the loss from operations for the same period a year ago. The improvement in the loss from operations between years resulted from the same factors as described for the quarter and was also offset year to date by an unfavorable mix of lawn and garden product shipments. Through the first six months of fiscal 2010, costs related to the closure of the Jefferson, Wisconsin facility were $3.1 million.

General:

Interest expense was lower in the second quarter and first six months of fiscal 2010 because of lower average borrowings. The second quarter and year to date fiscal 2010 effective tax rates are at 29% and 39%, respectively, versus the 30% and 155% used in the same respective periods last year. The difference between the effective tax rates for the six month periods was due to the impact of higher levels of discrete items related to foreign dividends in fiscal 2009 compared to fiscal 2010.

Outlook:

The company continues to project that fiscal 2010 net income will be in the range of $40 to $50 million or $0.80 to $1.01 per diluted share. Consolidated net sales are projected to be approximately 6% lower between years primarily due to the absence of hurricane related sales of portable generators, selected price reductions to reflect projected lower commodity costs and lower engine shipments to Europe for lawn and garden applications. Production levels for substantially all products are planned to be lower in fiscal 2010 to decrease our investment in working capital. Operating income margins are projected to be in the range of 4.0% to 5.0%, and interest expense and other income are forecasted at $27 million and $5 million, respectively. The effective tax rate for the full year is projected to be in a range of 31% to 34%.

The company will host a conference call today at 10:00 AM (EST) to review this information. A live web cast of the conference call will be available on our corporate website: http://www.briggsandstratton.com/shareholders. Also available is a dial-in number to access the call real-time at (866) 281-4322. A replay will be offered beginning approximately two hours after the call ends and will be available for one week. Dial (703) 925-2533 to access the replay. The pass code will be 1420930.

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”, “could”, “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; the ability of ourselves and our customers to secure adequate working capital funding and meet related covenants; 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 consumer confidence; changes in the market value of the assets in our defined benefit pension plan and any related funding requirements;

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
	2009			2008			2009			2008
NET SALES	$	393,049		$	477,481		$	717,656		$	935,632
COST OF GOODS SOLD		322,399			401,584			594,616			795,016
Gross Profit on Sales		70,650			75,897			123,040			140,616
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		60,339			63,302			121,132			128,153
Income from Operations		10,311			12,595			1,908			12,463
INTEREST EXPENSE		(7,179	)		(8,714	)		(13,655	)		(16,611	)
OTHER INCOME, Net		1,137			687			2,427			1,886
Income (Loss) before Income Taxes		4,269			4,568			(9,320	)		(2,262	)
PROVISION (CREDIT) FOR INCOME TAXES		1,244			1,376			(3,658	)		(3,498	)
Net Income (Loss)	$	3,025		$	3,192		$	(5,662	)	$	1,236
Average Shares Outstanding		49,595			49,571			49,594			49,567
BASIC EARNINGS (LOSS) PER SHARE	$	0.06		$	0.06		$	(0.12	)	$	0.02
Diluted Average Shares Outstanding		50,040			49,707			49,594			49,664
DILUTED EARNINGS (LOSS) PER SHARE	$	0.06		$	0.06		$	(0.12	)	$	0.02

Segment Information

(In Thousands)

(Unaudited)

	Second Quarter						Six Months
	2009			2008			2009			2008
NET SALES:
Engines	$	274,332		$	339,287		$	484,735		$	597,908
Power Products		156,576			192,012			320,182			447,543
Inter-Segment Eliminations		(37,859	)		(53,818	)		(87,261	)		(109,819	)
Total *	$	393,049		$	477,481		$	717,656		$	935,632
*  International sales based on product shipment destination included in net sales	$	147,374		$	164,930		$	232,812		$	276,797
GROSS PROFIT ON SALES:
Engines	$	59,909		$	65,697		$	96,309		$	106,124
Power Products		14,014			10,953			36,044			32,484
Inter-Segment Eliminations		(3,273	)		(753	)		(9,313	)		2,008
Total	$	70,650		$	75,897		$	123,040		$	140,616
INCOME (LOSS) FROM OPERATIONS:
Engines	$	18,043		$	21,970		$	12,129		$	16,459
Power Products		(4,459	)		(8,622	)		(908	)		(6,004	)
Inter-Segment Eliminations		(3,273	)		(753	)		(9,313	)		2,008
Total	$	10,311		$	12,595		$	1,908		$	12,463

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets as of the End of Fiscal December

(In Thousands)

(Unaudited)

CURRENT ASSETS:	2009			2008
Cash and Cash Equivalents	$	22,909		$	19,036
Accounts Receivable, Net		218,915			329,593
Inventories		596,064			608,220
Deferred Income Tax Asset		57,285			54,608
Other		27,223			45,707
Total Current Assets		922,396			1,057,164
OTHER ASSETS:
Goodwill		254,844			248,546
Investments		16,673			16,968
Prepaid Pension		—			97,119
Other Intangible Assets, Net		91,343			98,518
Deferred Income Tax Asset		23,964			—
Other Long-Term Assets, Net		11,951			11,006
Total Other Assets		398,775			472,157
PLANT AND EQUIPMENT:
At Cost		981,162			1,017,261
Less—Accumulated Depreciation		632,399			637,334
Plant and Equipment, Net		348,763			379,927
	$	1,669,934		$	1,909,248
CURRENT LIABILITIES:
Accounts Payable	$	135,580		$	194,223
Short-Term Debt		106,415			204,894
Accrued Liabilities		163,881			169,631
Total Current Liabilities		405,876			568,748
OTHER LIABILITIES:
Deferred Income Tax Liability		3,280			50,833
Accrued Pension Cost		133,137			36,936
Accrued Employee Benefits		19,512			18,685
Accrued Postretirement Health Care Obligation		150,238			156,406
Other Long-Term Liabilities		28,686			32,936
Long-Term Debt		230,924			246,848
Total Other Liabilities		565,777			542,644
SHAREHOLDERS’ INVESTMENT:
Common Stock and Additional Paid-in Capital		80,034			76,732
Retained Earnings		1,059,632			1,061,978
Accumulated Other Comprehensive Income (Loss)		(237,355	)		(131,793	)
Treasury Stock, at Cost		(204,030	)		(209,061	)
Total Shareholders’ Investment		698,281			797,856
	$	1,669,934		$	1,909,248

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

	Six Months Ended Fiscal December
CASH FLOWS FROM OPERATING ACTIVITIES:	2009			2008
Net Income (Loss)	$	(5,662	)	$	1,236
Depreciation and Amortization		32,265			34,580
Stock Compensation Expense		5,359			2,560
Loss on Disposition of Plant and Equipment		1,013			641
Provision for Deferred Income Taxes		(6,216	)		4
(Increase) Decrease in Accounts Receivable		44,779			(8,344	)
Increase in Inventories		(118,127	)		(68,125	)
(Increase) Decrease in Other Current Assets		10,271			(355	)
Increase in Accounts Payable and Accrued Liabilities		10,296			4,958
Other, Net		743			(5,896	)
Net Cash Used by Operating Activities		(25,279	)		(38,741	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Plant and Equipment		(15,592	)		(21,140	)
Cash Paid for Acquisition, Net of Cash Acquired		—			(24,757	)
Proceeds Received on Disposition of Plant and Equipment		172			2,211
Other, Net		(144	)		—
Net Cash Used by Investing Activities		(15,564	)		(43,686	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings on Loans, Notes Payable, and Long-Term Debt		52,932			81,650
Dividends		(5,500	)		(10,906	)
Net Cash Provided by Financing Activities		47,432			70,744
EFFECT OF EXCHANGE RATE CHANGES		328			(1,749	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		6,917			(13,432	)
CASH AND CASH EQUIVALENTS, Beginning		15,992			32,468
CASH AND CASH EQUIVALENTS, Ending	$	22,909		$	19,036