Briggs & Stratton Plant Cuts Jobs

The lack of a ferocious storm like Hurricane Katrina has cut into sales of the Briggs & Stratton plant in Auburn, Ala., leading to the layoffs of 90 people.

"Our sales have softened," Dave DeBaets, vice president and general manager of the Auburn factory's large engine division, said Tuesday.

The production line impacted by the job cuts makes engines used in generators sold by retailers like Home Depot and Lowe's.

"With the last two years, and particularly this year with no landfall on hurricanes, all of our customers have pretty much called it a season and started shutting down," DeBaets said.

In a normal season, the plant makes up to 500,000 engines used in generators. After Katrina hammered New Orleans and the central Gulf Coast two years ago, that number spiked to nearly 900,000 engines as homeowners and businesses grabbed them to supply power to their structures and for equipment used in cleanup and reconstruction.

But the tropical season has been very quiet this year, leading the company to notify its workers Monday of the pending layoffs. It's a mix of skilled and semi-skilled operators, and no severance is being offered, DeBaets said. A recall list is being maintained should more work materialize.

"It's a hard business to plan for, but we try to do our best working closely with our customers," he said. "The retailer inventory is full. The Home Depots and the Lowe's have plenty of generators. So you need a weather event to create some flow."

With the cuts, the 300,000-square-foot Briggs & Stratton plant will employ about 500 people, DeBaets said. In recent years the work force peaked at just under 800.

Built in 1995, the 150 Technology Parkway facility also makes V-twin lawn tractor engines and a smaller 3-horsepower engine that powers equipment like edgers and snow blowers.

DeBaets said there are no plans to whittle the Auburn plant's work force any more.

"We've got three product families in here," he said. "This one is probably the most seasonal in nature because of the generator application."

Overall, Milwaukee-based Briggs & Stratton Corp. reported last Thursday a loss of $20.5 million, or 33 cents per share, for its fiscal first quarter. The loss came on revenue of $366.7 million, up from $338.2 million the same period a year ago.

The outdoor power equipment manufacturer attributed the loss to expenses related to the shutdown of an engine plant in Rolla, Mo., and efforts to open a lawn equipment factory in Newbern, Tenn.

Briggs & Stratton management said it expects a full-year profit ranging from $60 million to $65 million, or $1.21 to $1.31 per share. Analysts have been forecasting earnings of $1.31 per share.