14195--9/1/2006--BRIGGS_&_STRATTON

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{cost, operation, labor}

{customer, product, revenue}

{operation, international, foreign}

{condition, economic, financial}

{acquisition, growth, future}

{product, market, service}

Demand for products fluctuates significantly due to seasonality. In addition, changes in the weather and consumer disposable income impact demand. We have only a limited ability to pass through cost increases in our raw materials to our customers during the year. A significant portion of our net sales comes from major customers and the loss of any of these customers would negatively impact our financial results. Changes in environmental or other laws could require extensive changes in our operations or to our products. Foreign economic conditions and currency rate fluctuations can reduce our sales. Actions of our competitors could reduce our sales or profits. Disruptions caused by labor disputes or organized labor activities could harm our business. Failure to successfully integrate acquisitions could adversely impact our results. We have approximately $383.3 million of long-term debt, in addition to the seasonal borrowings we incur under our working capital facilities. This level of debt could adversely affect our operating flexibility and put us at a competitive disadvantage. We are substantially restricted by the terms of the outstanding senior notes and our other debt, which could adversely affect us. Our failure to comply with restrictive covenants under the indentures governing the senior notes and our revolving credit facilities could trigger prepayment obligations.

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14195--9/1/2006--BRIGGS_&_STRATTON_CORP