Briggs Stratton Turning Around

Briggs & Stratton is into deep problems now a days like other American companies. There is a drop in its earnings from $60 million to a mere $7.8 million. The EPS has dropped from $1.16 to an all time ever low of $0.15 per share. All expectations of the analysts have gone for a six. The market cap of the company has taken a deep hit and the stock prices have dipped by more than 50% over the previous year and are currently stuck at $31 in contrast to $60 last year.

 This has prompted Briggs & Stratton to go out and cut American jobs and arrange for outsourcing its operations for survival. The company as woken up to the signals and has taken up the axe and started hacking of costs. It has already decided to close down its plant at Missouri and has moved its production base to China which has given a tremendous cost savings and is considering the same action for its plant at Georgia.

 Recently Briggs & Stratton laid off 500 of its workers at Port Washington. And another 41 employees were handed over the pink slips at the engine plat at Milwaukee. With these cost cuts the future prospects of the company are bright and there are every chances of a bounce back unless the company goes out of production totally and files bankruptcy which seems distant.

The stock prices of the company which took a major beating in the exchanges are showing signs of recovery as recently some large chunks of is stock have been purchased by institutional investors like Janus Capital and Barclays. All these are good signs for the company and it should come out of the red soon. Currently with a market capitalization of $1.53 billion this could be a good bargain for any cash rich investor. These happening definitely point out to a probable buy out by someone.

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