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Briggs & Stratton Corporation Message Board

  • hospital_boy hospital_boy Mar 24, 1999 7:12 AM Flag

    Toro news should help BGG

    Toro, a major competitor to BGG has a press
    release out today saying - revenues will up 10% this
    quarter over projections. they say there is stronger
    sales then expected. I think this bodes well for BGG,
    and to tell you the truth I expected this. IF toro is
    up 10% BGG will be up 15. They have much more market
    share. Go Baby. Warm wet spring, big income tax refunds,
    riding mower sales will surge.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • None!

    • <EOM>

    • The Genset business is only a small portion of
      the overall business at BGG......Y2k has helped beef
      up 1st and 2nd quarters..... but business will be
      strong for the rest of the year.......weather providing
      !

    • According to the financials things have been
      pretty good... good enough that there is no inventory
      built up and things must be running at capacity. What
      happens to earnings when sales start to decrease below
      capacity and inventory is built back up? Seems to me there
      would be a couple of quarters that would find earnings
      well short. How can earnings keep growing with
      production at capacity? Anyone know if sales are still going
      strong, or was it just the generators that were driving
      things? Any other exciting info about bgg??

    • the Yahoo Research page fresh today shows boosted
      earnings estimate for this fiscal year (ending 06/'00),
      and a fairly dramatic projection for next.

      The
      President's letter I looked at last weekend made clear that
      generator sales, in anticipation of y2k, drove earnings
      last year. Ever since reading that I've had nightmares
      of seeing January '00 ads on eBay like, "FS, new B&G
      xx-hp gas gen. Never out of carton. Bids start at $xxx
      (60% off cost)."

      That Mr. Stratton sold 200,000
      shares in the last year concerns me, too. I'd been
      thinking he might be retiring, but that doesn't appear to
      be the case.

      If I get another shot ay
      stepping aside at $62 I wonder if I'll shoot (I R a NWL
      owner . . . really don't need another
      meltdown.)

      Please post yor thoughts.

      Good luck to all.

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    • <EOM>

    • How is Toro a major competitor to Toro. Toro
      produces products sold directly to retail distribution,
      Briggs supplies OEM components (engines primarily) to
      manufacturers. Briggs produces no proprietary products. Toro is
      a customer, maybe not a large one, of
      Briggs.

      The generator industry is certainly booming. Generac
      and Coleman Powermate have been the retail leaders
      with volume distribution through retailers including
      Kmart, Walmart, Home Depot, Sears, Sams, Costco etc.
      They are both balls to the walls with production
      restraints and engine availability (Briggs and Tecumseh)
      providing a major problem.

      New generator players
      have joined the party over the past years, taking a
      sizable chunk of Powermate's market share, less from
      Generac. These players include DeVilbiss and Campbell
      Hausfeld. A former Powermate exec has begun generator
      assembly and several old line companies including Winco,
      Winpower and Onan are pursuing the Generac and Powermate
      retail channels.

      Yes it will be a good year for
      generators. Generators remain a fairly small component of
      Briggs sales however. The entire generator industry in
      normal times consumes less than a half million engines
      annually. These engines do produce better margins for
      Briggs and Stratton than lawn mower engines thereby
      resulting in a favorable mix.

      Still remember that
      MTD and Murray will consume more than ten times the
      total generator industry engine requirement.

      • 1 Reply to s3X2k
      • s3X2k,

        It is good that people are reading
        the posted messages with scrutiny BUT...

        The
        overall content (as I read it) of the first Toro message
        is that Toro, a gasoline engine powered yard
        equipment manufacturer, announced that they expect 10%
        higher earnings than previously forecast.

        It is
        reasonable to hope that since Toro is expecting greater
        earnings that similar industries, MTD, Murray, etc, and
        their suppliers, BGG + others, may also end up with
        higher earnings than forecast.

        The fact of
        whether or not Toro is a direct competitor of BGG is of
        little consequence. In fact if Toro does buy engines
        from BGG, as you stated, then the Toro good news makes
        me more optimistic that BGG may receive some
        unforecast earnings increase.

        Since you like to
        scrutinize every detail then you should have previewed your
        message to correct your first statement. "How is Toro a
        major competitor to Toro." I expect that one of the
        Toros should be a BGG and that a question mark should
        have been used instead of a period. I did read past
        the errors and took in the OVERALL CONTENT OF YOUR
        MESSAGE.

    • I agree that Toro's good news will translate to
      good news (or better) for BGG also.

      Others must
      feel they have to wait 3-4 weeks for BGG's quarterly
      report (qtr ending 03-31) before they can realize that
      BGG should be in the $57-$61 dollar range,
      conservatively.

      How do we convince other investors that they
      should hold on to their BGG stock? It appears that many
      investors are taking profits when the price increases only
      $1 to $1.50. Don't they realize that if they can
      hold on for 1 to 3 months that a sustainable price in
      the upper 50's or 60's should be realized?

      BGG
      has great upside price potential and should not
      follow the ups and downs of the S&P.

 
BGG
19.97-0.910(-4.36%)Jun 24 4:04 PMEDT