Husqvarna Interim Report – January to September 2009 Excerpts

October 23 -- Magnus Yngen, President and CEO: “Market demand in the quarter was substantially weaker than in the previous year in all product areas. Adjusted for changes in exchange rates and acquisitions, Group sales declined by 11% and operating income by 11% exclusive of the restructuring charge. The decline in income resulted mainly from lower volumes and a less favorable product and country mix.

Lower material costs had a positive effect, as did savings from previously implemented cost cutting measures. Despite a difficult market environment, income for Professional Products remained at a high level. Forestry reported largely unchanged income with a higher margin, while Construction showed a decline.

Cash flow for the nine month period was strong as our efforts to reduce working capital have paid off. 

In line with our strategic plan, we intend to implement a number of structural changes to improve internal efficiency. The total cost for these measures is estimated at approx. SEK 400m, of which SEK 59m was charged against operating income in the third quarter.

The remaining part, i.e. approx. SEK 340m, is expected to be charged against operating income in the fourth quarter of 2009. The restructuring refers mainly to consolidation of production in Sweden and the US, and to changes within the sales organization.

Annual savings from all these activities are expected to amount to approximately SEK 400m, and will be generated gradually from the second half of 2010 with full effect as of the start of 2012.”

NET SALES AND INCOME

THIRD QUARTER

Net sales

Net sales for the third quarter amounted to SEK 6,709m (6,830), a decline of 2%.

Adjusted for acquisitions and changes in exchange rates, net sales declined by 11%. Sales for Consumer Products were lower than in the previous year both in North America and outside North America. Sales for Professional Products declined in all product areas with the largest downturns for Construction and Forestry.

Operating income

Operating income, including a restructuring charge of SEK 59m, amounted to SEK 173 (310).

Excluding the restructuring charge, operating income declined by 29% to SEK 232m (325), corresponding to a margin of 3.5% (4.8). The decline resulted mainly from generally lower volumes and a less favorable product and country mix. Lower material costs and savings from previously implemented cost reductions had a positive effect.

In terms of business areas, the decline in operating income refers mainly to Consumer Products outside North America. Professional Products also reported a decline, referring mainly to Construction, while income for Forestry was largely unchanged and margin improved.

Changes in exchange rates, including both translation and transaction effects net of hedging, had a total negative effect on operating income of approximately SEK -74m (64). Hedging contracts had a negative effect of SEK -30m (-12).

Costs for restructuring

The Group intends to implement a number of structural changes during 2009-2010. The total cost for these restructuring measures is estimated at approximately SEK 400m, of which SEK 59m was charged against operating income in the third quarter of 2009. The charge in the third quarter refers to relocation of production of chainsaws and other handheld products from the plant in Valmadrera, Italy to the plant in Shanghai, China. Approximately SEK 10m of this amount refers to non-cash items. 

The remaining part of the restructuring cost, i.e. approximately SEK 340m, is expected to be charged against operating income in the fourth quarter of 2009. Approximately SEK 170m of this amount refers to non-cash items. 

Capital expenditure related to the restructuring is expected to amount to approximately SEK 400m, of which a new plant in Poland will account for approximately SEK 250m. 

Annual savings from all the above mentioned activities are expected to amount to approximately SEK 400m, and will be generated gradually from the second half of 2010 with full effect as of the start of 2012.  For further details

Financial net

Net financial items amounted to SEK -65 (-132). Net financial items were positively affected by the SEK 3 billion rights issue earlier in the year and by lower interest rates.

The average interest rate on borrowings at the end of the quarter was 3.16% (4.80). The average fixed interest-term of the loans was extended during the third quarter from 3.3 months to 18.1 months. 

Income after financial items

Income after financial items amounted to SEK 108m (178) corresponding to a margin of 1.6% (2.6). 

Taxes

Tax was positive in the amount of SEK 22m (-35), as a result of utilization of tax-loss carry forwards and the previously announced changes in Group structure.

Earnings per share

Income for the period was SEK 130m (143), corresponding to SEK 0.23 (0.32) per share after dilution. 

NET SALES AND INCOME

JANUARY - SEPTEMBER

Net sales

Net sales amounted to SEK 29,342m (27,216), corresponding to an increase of 8%. 

Adjusted for changes in exchange rates and acquisitions, net sales declined by 9%. Sales for Consumer Products in North America rose somewhat from the previous year, while sales for Consumer Products outside North America declined. Sales for Professional Products were lower than in 2008 in all product areas with the largest downturn for Construction. 

Operating income

Operating income including restructuring charges of SEK 112m, amounted to SEK 2,075m (2,833), corresponding to a margin of 7.1% (10.4).

Excluding the restructuring charge, operating income declined by 23% to SEK 2,187m (2,848), corresponding to a margin of 7.5% (10.5). 

The decline in operating income resulted mainly from a higher share of sales of consumer products with lower margins than professional products, as well as a less favorable mix in terms of products and geographical markets.

Operating income declined for both business areas, with the largest downturn for Professional Products. Income for Consumer Products in North America rose from the previous year and margin improved. All areas within Professional Products reported declines with the largest downturn for Construction. Margin for Forestry was higher than in 2008. 

Changes in exchange rates, including both translation and transaction effects net of hedging, had a total negative effect on operating income of SEK -16m (93). Hedging contracts had a negative effect of SEK -48m (-126).

Financial net

Net financial items amounted to SEK -433m (-454). Lower interest rates and lower net debt were partly offset by the negative effect of the weaker SEK, as the greater part of funding is denominated in foreign currencies.

Income after financial items

Income after financial items amounted to SEK 1,642m (2,379), corresponding to a margin of 5.6% (8.7).

Taxes

Total taxes amounted to SEK -287m (-673). The lower tax rate is an effect of previously announced changes in Group structure, a one-time tax repayment in the amount of SEK 40m in the second quarter and utilization of tax-loss carry forwards.

Earnings per share

Income for the period was SEK 1,355m (1,706), corresponding to SEK 2.50 (3.74) per share after dilution.

OUTLOOK FOR FOURTH QUARTER 2009

The gardening season ends during the third quarter, and production for next year’s season normally starts late in the fourth quarter. The major share of Group sales during the fourth quarter normally comprises chainsaws and other forestry equipment as well as products for the construction industry.

Retail inventories of the Group’s garden products at the end of the third quarter are estimated to have been lower than in the previous year. Uncertainty remains regarding shipments in light of the recession, and retailers are expected to continue maintaining inventories at low levels .The Group expects shipments in the fourth quarter to be slightly lower than in the fourth quarter of 2008. 

OPERATING CASH FLOW

Operating cash flow for the third quarter declined to SEK 1,411m (2,216). Cash flow in the third quarter was negatively affected by the sale of trade receivables in the second quarter in the amount of SEK 400m.

Operating cash flow for the first nine months improved to SEK 2,936m (1,897), mainly as a result of efforts to reduce working capital, which resulted in lower levels of inventory and trade receivables. 

PERFORMANCE BY BUSINESS AREA

THIRD QUARTER

Sales for the Consumer Products business area rose in SEK, but declined after adjustment for changes in exchange rates. Sales in North America in the quarter were lower than in 2008, particularly for handheld equipment as a result of lower demand and in comparison with the previous year when sales were positively impacted by storms.

The Group’s shipments in North America, in both the third quarter and for the nine-month period, outperformed overall industry shipments which are estimated to have declined in most product categories. 

Sales outside North America rose slightly in the mass-market channels. Gardena-branded electrical products showed a positive sales trend on the basis of several new products for this season, such as chainsaws and lawnmowers.

Sales of Husqvarna-branded products in the dealer channel declined, particularly within handheld products and in Eastern Europe and Russia.

Operating income for this business area was lower than in the previous year, and margin declined. Income for the North American operation improved somewhat in local currency. Income for the operation outside North America showed a slight improvement in the mass-market channel.

Professional Products

Sales for the Professional Products business area were substantially lower than in the previous year, as a result of weaker demand in most product areas and markets. All product areas reported declines, the largest being for Construction and Forestry. 

Operating income for this business area declined, but margin was unchanged. The decline in income was due mainly to lower sales volumes. Income for Forestry declined slightly but margin improved mainly as a result of rationalization of production, and despite substantially lower volumes in markets such as Eastern Europe and Russia. Lawn and Garden reported largely unchanged income and margin. Operating income for Construction decreased from a low level.

CHANGES IN GROUP MANAGEMENT

As of 1 October 2009, Michael Jones was appointed head of Sales in North and Latin America and a member of Group Management. Michael Jones has held various leading positions in General Electric in the US since 1994, most recently as General Manager, Cooking Products within the Appliances Division.

Roger Leon, who was acting head of Sales in North and Latin America, was appointed head of Global purchasing.

Hoffco-Comet Closes - Shutters Plant in Richmond, Indiana

October 20 -- A Richmond manufacturer has closed, leaving 15 people out of work.

Hoffco-Comet has filed for Chapter 11 bankruptcy protection.

Our partners at Kicks 96 in Richmond report the company lost its biggest client, John Deere, less than two months ago.

Approximately a decade ago, Hoffco was servicing big name clients including Whirlpool and Amana and employed more than 300.

The company most recently manufactured lawn and garden equipment.

The John Deere contract represented about 50 percent of its business.

Kicks 96 reports the company has been borrowing money on a weekly basis to stay afloat.

Once it was no longer able to obtain financing, the company was forced into bankruptcy.

Husqvarna Restructuring for Improved Competitiveness

October 23 -- Husqvarna intends to implement a number of structural changes in order to reduce costs and improve the Group's competitiveness. The measures are aimed at eliminating overlap and duplication within production and administration, and involve consolidation of production in Sweden and the US, and of the sales organization in Europe and Asia/Pacific.

The changes are scheduled to be implemented in 2009-2010 and will affect approximately 1,200 employees. As a result of an increase in the number of employees in other production facilities in Poland and China, the net reduction in the number of employees is estimated at 400.

The total cost for the restructuring measures is estimated at approximately SEK 400m, of which SEK 59m was charged against operating income in the third quarter of 2009. The charge in the third quarter refers to relocation of production of chainsaws and other handheld products from the plant in Valmadrera, Italy to the plant in Shanghai, China. Approximately SEK 10m of this amount refers to non-cash items.

The remaining part of the restructuring cost, i.e. approximately SEK 340m, is expected to be charged against operating income in the fourth quarter of 2009. Approximately SEK 170m of this amount refers to non-cash items.

Capital expenditure related to the restructuring is expected to amount to approximately SEK 400m, of which a new plant in Poland will account for approximately SEK 250m.

Annual savings from all the above mentioned activities are expected to amount to approximately SEK 400m, and will be generated gradually from the second half of 2010 with full effect as of the start of 2012.

The planned restructuring activities mainly include:

· Relocation of production of riders to a new plant in Poland, and closure of the Rider plant in Huskvarna, Sweden.

· Relocation of production in Tandsbyn, Sweden to Huskvarna, and closure of the plant in Tandsbyn.

· Relocation of lawn-mower production in Höör, Sweden, to the new plant in Poland and intention to divest the remaining operation in Höör.

· Relocation of Construction's operation in Jönköping, Sweden to Huskvarna, and personnel cutbacks within Construction in Spain.

· Intention to divest the plant in Ödeshög, Sweden which produces components for chainsaws, riders and other products.

· Relocation of production of chainsaws and other handheld products in USA from DeQueen, AR to the plant in Nashville, AR and intention to use the facility as a warehouse.

· Closure of the office in Augusta, GA, USA and transfer to Charlotte, NC, USA, which will be the regional head office.

· Consolidation of sales organization in Europe and Asia/Pacific, including establishment of a single sales office for the Nordic region in Huskvarna, Sweden.

"I regret that we have to implement measures which will affect so many employees. Husqvarna's production is too fragmented with a number of small plants, which means inefficient utilization of capital and resources. We also need to finalize the integration of acquired units and realize anticipated synergies. These changes are necessary in order to secure the Group's long-term competitiveness", says Magnus Yngen, CEO and President.

The above changes are subject to requisite approval or negotiations with respective unions.

Sagging Sales Push Briggs to Wider Loss

Milwaukee -- October 22 -- Sagging sales of lawn mower engines and portable generators led Briggs & Stratton Corp. of Wauwatosa to report a fiscal first quarter loss of $8.7 million - more than four times bigger than a year ago.

The company's loss was $8.69 million, or 18 cents a share, compared with a loss of $1.96 million, or 4 cents, a year ago.

Sales for the three months ended Sept. 30 were down 29%, to $324.6 million from $458.2 million.

Sales are expected to fall for the full fiscal year for Briggs, which responded to the slowdown by cutting jobs and consolidating operations.

But the company continues to forecast that net income will grow in 2010 to a range of $40 million to $50 million, from $32 million in 2009. Earnings per share are forecast at 80 cents to $1.01.

The company said it's seeing higher commodity prices, as the cost of aluminum and steel have jumped in recent months, said Jim Brenn, chief financial officer.

Briggs said sales of engines for lawn mowers fell 19% in the quarter, and sales of power products - primarily portable generators - fell 36%.

"Retail sales of lawn and garden equipment during the summer months were not as robust as they were during last year's first quarter," said Todd Teske, president and chief operating officer, during a conference call with investment analysts. That led retailers to reduce inventories, with dealers of premium lawn and garden equipment slashing inventories "to levels that we have not seen for several years," he said.

Helping offset the decline in sales were cost-cutting moves the company has made, including the shutdown of its Port Washington factory, Teske said.

The company recorded $1.4 million in costs linked to the shutdown of its generator and pressure washer factory in Jefferson, announced in July.

Briggs & Stratton Announces 1st Quarter Fiscal Year Results

MILWAUKEE – October 22 -- Briggs & Stratton Corporation today announced fiscal 2010 first quarter consolidated net sales of $324.6 million and a net loss of $8.7 million or $0.18 per diluted share. Consolidated net sales decreased $133.5 million or 29% from the prior year while the net loss was $6.7 million greater than the same period a year ago.

The $133.5 million consolidated net sales decrease was primarily the result of weaker shipments of both portable generators and engines. The increase in the net loss of $6.7 million was primarily the result of lower sales volumes in both reportable segments and a less favorable effective tax rate, partially offset by lower production costs and operating expenses.

Engines:

Fiscal 2010 first quarter net sales were $210.4 million, $48.2 million or 19% less than the prior year. This decrease reflects a 22% decrease in engine unit shipments compared to the same period a year ago.

The reduction in engine unit volume was attributable to consumer demand for lawn and garden equipment that was softer than that experienced in the same period a year ago and the decrease in demand for engines for portable generators due to the lack of landed hurricanes this year versus the activity experienced in the first quarter last year.

The fiscal 2010 first quarter loss from operations was $5.9 million, which is $0.4 million more than the $5.5 million loss from operations experienced in the first quarter of fiscal 2009. This increase in the loss from operations over the prior year was the result of a decrease in engine unit shipments and an increased provision for potential uncollectible receivables, offset by lower production costs and operating expenses.

The lower production costs are primarily the result of lower costs for purchased materials and components, lower transportation costs and lower warranty expenses. Operating expenses were lower in the fiscal 2010 first quarter compared to the prior year period, due primarily to planned reductions in selling and engineering expenses.

Power Products:

Fiscal 2010 first quarter net sales were $163.6 million, $91.9 million or 36% less than the prior year. The decrease in sales primarily resulted from decreased sales of portable generators due to the lack of hurricanes making landfall in the United States in this year's first quarter. In addition, unit shipments of all lawn and garden products were soft, especially the premium equipment that we sell through the dealer channel.

The fiscal 2010 first quarter income from operations was $3.6 million, an improvement of $1.0 million from the income from operations of $2.6 million reported in the first quarter of fiscal 2009. This improvement in income from operations between years resulted from lower production costs for materials and components and improved absorption related to the mix of product manufactured, partially offset by lower sales.

General:

Interest expense was lower between years because of lower outstanding borrowings. The effective tax rate was 36% versus the 71% used in the first quarter last year. The effective tax rate for the first quarter of fiscal 2009 was significantly higher than the 2010 period because 2009 included the favorable tax impact of foreign dividends.

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 lower between years primarily due to the absence of hurricane related sales of portable generators and selected price reductions to reflect projected lower commodity costs. 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%.

Briggs Announces Results of Annual Meeting

MILWAUKEE, Oct. 21 -- Briggs & Stratton Corporation announced the following results of its Annual Meeting held today:

Shareholders reelected Robert J. O'Toole, John S. Shiely and Charles I. Story as directors to terms expiring in 2012.

Shareholders ratified the selection of PricewaterhouseCoopers LLP as the company's independent auditors and the Rights Agreement as amended by the company on October 13, 2009.

A proposal to amend and restate the Briggs & Stratton Corporation Incentive Compensation Plan was also approved by shareholders.

Auburn NE Arien's Plant to Make Products from Recnt Acquisition

LINCOLN -- October 20 -- Ariens Company said Tuesday it has acquired an Arizona company and will move production from there to its plant in Auburn.

Ariens said it bought the assets of Parker Inc. of Phoenix, which makes debris maintenance equipment, including blowers, power rakes, lawn sweepers, litter vacuums and portable truck loaders. The purchase price was not disclosed.

Ann Stilp, an Ariens spokeswoman, said the company hasn't determined whether it will continue to produce all of Parker's product line, but whatever it makes will be made in Auburn.

Stilp said the Auburn plant has excess capacity, and the Parker expansion will not require any additional employees.

She said employment at the Auburn plant has steadily grown and is now up to about 100 employees, about 25 fewer than Auburn Consolidated Industries had when it closed its doors two years ago this month.

Ariens bought the ACI plant within weeks and resurrected the Great Dane and EverRide commercial mower brands.

In addition to the Parker acquisition, Ariens earlier this year bought the Treker line of utility vehicles from Great Plains Mfg. and moved production of the product to Auburn.

As part of that move Ariens added a few engineering employees at the Auburn plant, she said.

Generac Holdings Files for $300 Million IPO

October 20 -- Standby generator maker Generac Holdings Inc. (Generac Power Systems) has registered for an initial public offering of up to $300 million in shares, the second IPO filing by a company managed by private equity firm CCMP Capital LLC this month.

Exact details on price and number of shares to be offered are not yet available, but it appears that Generac itself will be selling all the shares. The company said it intends to use the proceeds to pay down a portion of its first- and second-lien term loans.

The company was founded in 1959 in a garage in Waukesha by entrepreneur Robert Kern, who sold a controlling stake in 2006 to CCMP Capital Advisors LLC, a Manhattan-based private equity firm. Kern used much of his share of the buyout to create the Kern Family Foundation, which supports science programs and educational reform meant to make the nation more competitive.

The company's headquarters and flagship production site is in the Town of Genesee near Waukesha. It also has two other Wisconsin production facilities in Whitewater, where it makes engines and generators, and Eagle, where it does metal fabrication.

The Wisconsin company makes generators with an output of 800 Watts to 9 megawatts of power and fueled by natural gas, liquid propane, gasoline, and diesel.

Generac is a boom-era deal for CCMP, which together with Unitas Capital Pte Ltd. and management bought the company in November 2006 for roughly $2 billion. According to the IPO filing, that included the purchase of $689 million of its equity and the borrowing of an aggregate of $1.4 billion.

Since the transaction, CCMP has been delevering the company by buying back its debt. According to the filing, CCMP bought up $259.1 million of the company's debt between September 2007 and July 2009, which Generac exchanged for common and preferred stock. Nonetheless, Generac failed to satisfy a leverage ratio in its senior secured credit facilities at Sept. 30, 2008, a default that CCMP cured with an equity contribution of $15.5 million.

As of Sept. 30, CCMP owned 76.5% of the company's Class B common stock and 99.4% of its Series A preferred stock.

The company, which plans to list on the New York Stock Exchange under the symbol GNRC, saw sales rise to $290 million from $236.6 million for the six months ended June 30 from a year earlier. Net income was $11.8 million, a reversal from a loss of $27 million a year earlier.

J.P. Morgan Securities Inc. and Goldman Sachs & Co. are acting as joint book-running managers.

Tecumseh Products Shakeup Puts Herrick Family Back in Control

October 9 -- The change in leadership at  Tecumseh Products Co. is not expected to have any impact on the ongoing negotiations to sell the company’s former headquarters and manufacturing plant to and Ohio-based baked-goods maker.

Snack food manufacturer Consolidated Biscuit Co. of McComb, Ohio, has been negotiating with Tecumseh Products to buy the former compressor manufacturing facility in Tecumseh for its seventh plant.

Consolidated Biscuit anticipates adding 500 jobs and about $12 million in personal property investment, with production to start in 2011 once everything has been finalized.

City officials said the project will go as planned. A spokesman for Consolidated Biscuit declined to comment, while Tecumseh Products did not respond to requests for comment.

“We have been in touch with Kent Herrick on this and other projects, and we believe he has the best interests of the company and the community at heart,” said Tecumseh City Manager Kevin Welch. “We don’t see any major hurdles. It’s a long process and something new comes up about every day, but we are all going to take our time and make sure it gets done right.”

Tecumseh Products announced new board and executive-level appointments on Wednesday, a little more than a month after a shareholder vote resulted in the Herrick family regaining control of the company founded by Ray Herrick. His great-grandson Kent Herrick was elected chairman of the board of directors.

As a result of the vote, Ed Buker was fired as chairman of the board, president and chief executive officer, effective Oct. 2. He also resigned from the board. James Wainright, currently vice president of global operations, will serve as acting president of the company while the board conducts a search for a new president and CEO.

Kent Herrick, a former executive with Tecumseh Products, and his father, former Tecumseh Products CEO, president and chairman Todd Herrick, were ousted from the company in the spring of 2007. Todd Herrick then launched a proxy battle to elect Kent Herrick and another nominee to the company’s board. Kent Herrick was named a director in April 2007 as part of a lawsuit settlement between the Herricks and the company.

At the annual meeting in August, shareholders voted to elect the Herrick slate of board candidates and did not approve a recapitalization proposal that would have consolidated the company’s Class A and B shares and reduced the Herrick Foundation’s voting power.

The Tecumseh City Council has a public hearing on a brownfield development plan for Consolidated Biscuit at 7:35 p.m. Oct. 19. The project site covers current Products-owned properties at 402 S. Evans St., 404 S. Evans St., 600 S. Ottawa St., 100 E. Patterson St. and 805 S. Evans St. and will cover lead paint removal and asbestos abatement and removal, said Paula Holtz, Tecumseh economic development director. After the public hearing and council action, the plan will go to the Michigan Department of Environmental Quality for approval.

The brownfield redevelopment plan would have a 30-year run involving $600,000 that will be reimbursed through tax increment financing (TIF), which allocates a portion of property taxes collected on a parcel for repayment of debts. Consolidated Biscuit will use the funds incrementally and will be repaid with the TIF funds.

Recent Tecumseh Products History

2006
— Nov. 20: Todd Herrick announces he will step down as the Tecumseh Products Co.’s CEO after 20 years at the head of the company his grandfather, Ray Herrick, founded. A $100 million credit agreement calls for Herrick to remain as the company’s board chairman after a successor is hired.

2007
— Jan. 19: The products’ board removes Herrick as CEO, replacing him with Jim Bonsall on an interim basis. Bonsall, a managing partner in a corporate-turnaround firm, had been running the company’s small-engine division during restructuring. Kent Herrick is fired from his management position with the company.

— Feb. 28: The company’s board removes Todd Herrick as chairman, replacing him with director David Risley, a former executive at La-Z-Boy in Monroe.

--  April 2: Todd Herrick and Tecumseh Products settle lawsuits over the management of the company resulting in Todd Herrick’s resignation as chairman on April 9. He remains as a non-voting board member as chairman emeritus. Kent Herrick is appointed to the board.

— Aug. 13: Ed Buker becomes CEO and president of the Products. He had been president and CEO of Citation Corp. in Alabama, a maker of cast and machined metal parts. He had previous held management positions in the automotive industry. A condition of his hiring is that he will eventually succeed Risley as chairman.

— Nov. 2: The company announces it will end production activities at its Tecumseh plant by the end of April 2008.

2008
— March 10: The Herrick Foundation recommends putting the company up for sale and says it plans to sell its share of the company’s stock.

— March 12: The company announces it will move its headquarters from Tecumseh to Pittsfield Township outside Ann Arbor.

— June: The company and the Herrick Foundation trade barbs in court over control of the company. The company had instituted a bylaw requiring 75 percent of voting stock to call a special meeting. The old threshold had been 50 percent. The foundation and Herrick family at the time owned more than 40 percent of the company’s voting stock.

— July 18: The company and Herrick Foundation reach an agreement to call a special shareholder meeting to consider removing directors Risley and Peter Banks.

— Dec. 19: Lenawee County Circuit Judge Timothy P. Pickard orders a halt to a planned stock split that would have diluted the Herrick family’s and foundation’s voting power. The company has two types of stock: non-voting Class A and voting Class B. The company claimed the proposed stock split was a move to recapitalize the company.

2009
— February: The company becomes part of an international investigation into alleged price-fixing in the compressor business. The Products, Whirlpool and other companies were cooperating in the investigation, though Tecumseh Products claimed Kent Herrick was not cooperating. The company also announces a new recapitalization plan that would replace the two classes of stock with a single share and compensate Class B shareholders with 1.1 shares of the new stock for every one share of the old stock.

— Aug. 14: Shareholders elect the Herrick Founda­tion’s slate of four candidates to the company’s board and reject the recapitalization plan. Two of management’s candidates who were elected immediately resign.

— Oct. 7: The board fires Buker as CEO and president and he resigns from the board. Kent Herrick is named chairman. James Wainwright, the company’s vice president of global operations, will serve as acting president until the board finds a new president and CEO.

Carlisle Finalizes Plans for Jackson, TN Plant

October 1 -- Aiken, S.C.-based Carlisle Tire & Wheel, a subsidiary of Charlotte, N.C.-based Carlisle Companies Inc., finalized its intent to operate in the former Jackson, Tenn., Whirlpool Corp. facility.

In July, Carlisle announced it would locate in the 568,606-square-foot manufacturing and distribution facility creating over 400 new jobs. Carlisle also plans to expand the facility, which will manufacture tires and inner tubes, by 156,000 square feet.

Madison County, through its Madison County Industrial Development Board, bought the facility from Whirlpool for $71 million and will lease it to Carlisle Corp., which will pay principal and interest on it.

Carlisle will also be eligible for state incentives like FastTrack Job Training Assistance, Industrial Machinery Tax Credits and Jobs Tax Credits for the project. The company hasn’t announced its planned investment in the expansion.

Michigan-based Whirlpool closed the facility in December 2008 after deciding to consolidate its dishwasher production operations in its Findlay, Ohio, plant.