Toro Recalls Power Clear Snow Blowers and Recycler Mowers

WASHINGTON, D.C. – April 17 -- The U.S. Consumer Product Safety Commission and Health Canada, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Toro Power Clear Snowblower and the Toro 20" Recycler Mower

Units:
	Snowblowers:	About 18,000 in the U.S. and 5,000 in Canada
	Mowers:	About 6,000 in the U.S. and 200 in Canada

Manufacturer: The Toro Company, of Bloomington, Minn.

Hazard: The carburetors on both products develop fuel leaks and can ignite when exposed to an ignition source, posing a fire or burn hazard.

Incidents/Injuries: There have been about 500 reports of carburetor leaks. There were no reports of fire or injury.

Description:
	Toro PC-421Q Snowblowers:		The model/serial numbers are found on a decal on the underside of the rear of the unit. Model and serial numbers are:
		Model Number	Serial Number
		38588	310000001 to 310999999 and 311000001 to 311003576
		38589	310000001 to 310999999 and 311000001 to 311999999
	Toro 20" Recycler Mower:		The model and serial numbers are found on a decal on the left rear of the mower.   Model 20323; Serial number 310000001 to 310999999.

Sold at: Toro Dealers in the United States and Canada from September 2009-March 2011.

Manufactured in: Mower in Mexico; Snowblower in the United States

Remedy: Consumers should immediately stop using the products and contact a Toro Service Dealer for a free repair.

Consumer Contact: For additional information, including the name of a dealer near you, contact Toro toll free at 877-738-4440 Monday through Friday from 8 a.m. to 4:30 p.m. CT, or visit Toro's website: www.toro.com

Briggs and Stratton Reports Improved Sales and Net Income for 3rd Quarter Fiscal 2011

MILWAUKEE -- April 28 -- Briggs and Stratton Corporation today announced financial results for its third fiscal quarter and first nine months ended March 27, 2011.

Highlights:

Third quarter fiscal 2011 consolidated net sales of $720.3 million increased $25.8 million or 3.7% from the third quarter of fiscal 2010. For the first nine months of fiscal 2011, consolidated sales were $1.5 billion, an increase of $92.5 million or 6.6% from the same period of fiscal 2010.

Third quarter fiscal 2011 consolidated net income of $51.5 million improved by $8.8 million from the same period of fiscal 2010 after adjusting for a litigation settlement included in the prior year period of $18.7 million after tax.

Net debt as of the end of the third fiscal quarter 2011 was $240.2 million or $80.4 million less than at the end of the third quarter of fiscal 2010. 

"Results for the third quarter of fiscal 2011 were driven by sales and operating improvements within both of our Engines and Power Products Segments," commented Todd J. Teske, Chairman, President and Chief Executive Officer of Briggs and Stratton. "We are very pleased with the strong sales growth we have achieved in our international markets this year. It is one of many outcomes demonstrating our team's focus on delivering results against the core pillars of our strategy. We remain cautiously optimistic regarding the upcoming lawn and garden season here in the U.S. despite the on-going economic challenges and the impact of higher gasoline prices on consumer spending." 

Consolidated Results:

Consolidated net sales for the third quarter of fiscal 2011 were $720.3 million, an increase of $25.8 million or 3.7% when compared to the same period a year ago. Fiscal 2011 third quarter consolidated net income was $51.5 million or $1.02 per diluted share. The third quarter of fiscal 2010 consolidated net income was $24.1 million or $0.48 per diluted share. 

Included in consolidated net income for the fiscal 2010 third quarter was a litigation settlement of $30.6 million ($18.7 million after-tax or $0.37 per diluted share). After considering the impact of the litigation settlement, third quarter fiscal 2011 consolidated net income improved by $8.8 million or $0.17 per diluted share over the adjusted consolidated net income of $42.7 million or $0.85 per diluted share in the third quarter of fiscal 2010. 

Consolidated net sales for the first nine months of fiscal 2011 were $1.5 billion, an increase of $92.5 million or 6.6% when compared to the same period a year ago. For the first nine months of fiscal 2011, consolidated net income was $42.2 million or $0.84 per diluted share. The first nine months of fiscal 2010 consolidated net income was $18.4 million or $0.36 per diluted share. 

Included in consolidated net income for the first nine months of fiscal 2011 was a $3.5 million pre-tax charge ($2.2 million after tax or $0.04 per diluted share) related to previously announced organization changes and $3.9 million of additional pre-tax costs ($2.4 million after tax or $0.05 per diluted share) associated with the redemption premium of the 8.875% Senior Notes and the write-off of the related deferred financing costs. Included in consolidated net income for the first nine months of fiscal 2010 was a litigation settlement of $30.6 million ($18.7 million after-tax or $0.37 per diluted share). After considering the impact of items related to the organization changes, debt redemption and litigation settlement, adjusted consolidated net income for the first nine months of fiscal 2011 was $46.7 million or $0.93 per diluted share, which was higher by $9.6 million or $0.20 per diluted share compared to the first nine months of fiscal 2010 adjusted consolidated net income of $37.1 million or $0.73 per diluted share. 

Engines Segment:

Engines Segment fiscal 2011 third quarter net sales were $503.8 million, which was $20.8 million or 4.3% higher than the prior year period. This increase from the same quarter last year is primarily due to higher shipment volumes and slightly increased engine pricing, partially offset by an unfavorable mix of product shipped that reflected lower volumes of units used on riding lawn and garden equipment. 

The Engines Segment gross profit percentage was 24.7% in the third quarter of fiscal 2011, or slightly lower from 24.8% in the third quarter of fiscal 2010. The change was attributable to higher commodity costs and increased salaries and benefits including a $2.3 million increase in pension benefits expense, offset by slightly increased engine pricing. 

The Engines Segment fiscal 2011 third quarter income from operations was $77.5 million, an increase of $3.5 million from fiscal 2010 third quarter adjusted income from operations. The increase is due to the improvement in net sales partially offset by an increase in non-manufacturing salaries and benefits including a $1.9 million increase in pension benefits expense. 

Engines Segment net sales for the first nine months of fiscal 2011 were approximately $1.0 billion, which was $58.2 million or 6.1% higher than the prior year period. This increase from the same period last year is primarily due to higher international engine unit shipments to European and Asian OEMs as well as slightly increased engine pricing. 

The Engines Segment gross profit percentage increased to 23.4% for the first nine months of fiscal 2011 from 22.4% in the first nine months of fiscal 2010. This improvement was primarily due to increased production volumes and slightly increased engine pricing partially offset by higher commodity costs and increased salaries and benefits. The increase in salaries and benefits includes a $7.2 million increase in pension benefits expense and $2.2 million of higher salaries and benefits due to temporary reductions in salaries and the 401(k) match implemented in the first half of fiscal 2010. 

The Engines Segment adjusted income from operations for the first nine months of fiscal 2011 was $92.9 million, an increase of $6.8 million from the first nine months of fiscal 2010 adjusted income from operations. The increase is due to the improvement in net sales and the gross profit percentage offset by an increase in non-manufacturing salaries and benefits including a $5.4 million increase in pension benefits expense and $1.5 million higher expenses due to temporary reductions in salaries and the 401(k) match implemented in the first half of fiscal 2010. 

Power Products Segment:

Power Products Segment fiscal 2011 third quarter net sales were $267.5 million, which was $12.1 million or 4.8% greater than the prior year period. This improvement was due primarily to increased unit shipment volumes of snow throwers and ZTRs, partially offset by reduced shipment volumes of portable generators as a result of fewer wide spread power outages caused by ice storms. 

The Power Products Segment gross profit percentage increased to 9.7% for the third quarter of fiscal 2011 from 7.2% in the third quarter of fiscal 2010. The improvement over the prior year was attributable to increased sales of higher margin products to dealers, decreased manufacturing spending and increased absorption on higher production volumes, partially offset by higher commodity costs and warranty expense. The decrease in manufacturing spending includes the absence of $3.0 million of transition costs from the closure of our Jefferson manufacturing facility, which were incurred in the third quarter of fiscal 2010. 

The Power Products Segment fiscal 2011 third quarter income from operations was $1.7 million, an increase of $8.9 million compared to the third quarter of fiscal 2010. 

Power Products Segment net sales for the first nine months of fiscal 2011 were $621.5 million, which was $35.4 million or 6.0% greater than the prior year period. This improvement was due primarily to increased unit shipment volumes of snow throwers and ZTRs, partially offset by reduced shipment volumes of pressure washers and portable generators as a result of lower consumer demand and retailers and dealers closely managing inventories in these categories. 

The Power Products Segment gross profit percentage decreased to 8.9% for the first nine months of fiscal 2011 from 9.8% in the first nine months of fiscal 2010. This decline between years resulted from higher manufacturing spending, lower absorption primarily related to the decreased production of portable generators, as well as increased expenses related to salaries and benefits. The increase in manufacturing spending relates to higher commodity costs, manufacturing inefficiencies in launching new products, increased warranty expense, and increased freight expense. The increase in salaries and benefits includes $0.8 million higher expenses attributable to temporary reductions in salaries and the 401(k) match implemented in the first half of fiscal 2010. 

The Power Products Segment adjusted loss from operations for the first nine months of fiscal 2011 was $14.6 million, or $5.9 million higher than the loss from operations of $8.6 million for the same period one year ago. The increased loss from operations was primarily caused by the previously discussed manufacturing cost increases as well as an increase in non-manufacturing salaries and benefits including $0.6 million higher expenses attributable to temporary reductions in salaries and the 401(k) match implemented in the first half of fiscal 2010. 

Corporate Items:

As previously announced, in December 2010 the company issued $225 million aggregate principal amount of 6.875% Senior Notes due December 2020. Net proceeds were primarily used to redeem the remaining outstanding principal of the 8.875% Senior Notes due March 2011. 

Interest expense was lower for the third quarter of fiscal 2011 due to lower average outstanding borrowings as well as the reduced interest rate associated with the refinanced Senior Notes. Interest expense was lower for the first nine months of fiscal 2011 due to lower average outstanding borrowings, partially offset by $3.9 million of pre-tax charges related to the redemption premium on the 8.875% Senior Notes and the write-off of related deferred financing costs. 

The third quarter and first nine months effective tax rate for fiscal 2011 was32.4% and 30.3%, respectively, versus 27.1% and 22.3% effective tax rate in the same respective periods last year. The variation reflected between years was due to the required recognition of the tax effect of certain events as discrete items in the quarter in which they occurred rather than in the overall expected annual tax rate. 

Financial Position:

Net debt at March 27, 2011 was $240.2 million (total debt of $283.0 million less $42.8 million of cash), an improvement of $80.4 million from the $320.6 million (total debt of $348.5 million less $27.9 million of cash) at March 28, 2010. Cash used by operating activities for the first nine months of fiscal 2011 was $100.3 million, or $83.8 million higher compared to $16.5 million in the first nine months of fiscal 2010. The increase in cash used for operating activities is primarily due to working capital requirements to replenish inventory from lower levels at the end of fiscal 2010 and due to timing of payments associated with accounts receivable, accounts payable and accrued liabilities, offset by higher net income.

Outlook:

The company maintains its guidance that fiscal 2011 net income on a GAAP basis will be in the range of $57 to $68 million or $1.13 to $1.35 per diluted share. Consolidated net sales are projected to be approximately 2% to 5% higher than in fiscal 2010. 

Engines Segment sales are forecasted higher on modest volume and pricing improvements while the Power Products Segment sales are forecasted higher primarily due to higher expected volumes of lawn and garden equipment. 

Demand for portable generators and the related engines due to landed hurricane activity have not been included in our fiscal 2011 sales forecast. 

Operating income margins for fiscal 2011 are projected to be in the range of 4.7% to 5.2%, and interest expense and other income are forecasted to be in the range of $23 million to $24 million and $6 million to $7 million, respectively. The effective tax rate for the full year is projected to be in a range of 30% to 33%.

Cub Cadet Recalls Riding Lawn Mowers Due to Fire Hazard

The following product safety recall was voluntarily conducted by the firm in cooperation with the CPSC. Consumers should stop using the product immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

April 3, 2011

Name of Product: Cub Cadet riding lawn mowers

Units: About 4,300

Manufacturer: MTD Consumer Group Inc, of Cleveland, Ohio

Hazard: A fuel leak can occur near the rear mounting screws on the bottom of the fuel tank, posing a fire hazard.

Incidents/Injuries: None reported.

Description: The recalled 2011 Cub Cadet zero turn riding lawn mowers, intended for both commercial and private use, have yellow and black steel frames. They sold under the following brand names and model numbers:

Model	Factory Model Numbers
Cub Cadet Z Force 48	17BF3AGV010
Cub Cadet Z Force 54	17BF3AGX010
Cub Cadet Z-Force-S 46	17AF5BHH010
Cub Cadet Z-Force-S 48	17AF5BHB010
Cub Cadet Z-Force-S 54	17AF5GHC010
Cub Cadet Z-Force-S 60	17AF5GHD010
Cub Cadet Z-Force Commercial 48	53AH5FJB050
Cub Cadet Z-Force Commercial 60	53AH5FJD050
Cub Cadet Tank L48	53AH8CTB050
Cub Cadet Tank L60	53AH8CTD050

Model number, serial number and date of manufacturer are printed on a label located under the front of the driver’s seat. The serial number range and date of manufacture (DOM) of affected mowers are 1A101ZXXXXX (DOM 01/2011) through 1C091ZXXXXX (DOM 03/2011). Date of manufacture appears on the label.

Sold by: Cub Cadet dealers nationwide from February 2011 through March 2011 for between $3,600 to $7,000.

Manufactured in: United States

Remedy: Consumers should immediately stop using the mowers and store them outside. Consumers should contact their local Cub Cadet dealer to schedule an appointment for a free repair.

Consumer Contact: For more information, contact Cub Cadet toll-free at (888) 848-6038 between 8 a.m. and 5 p.m. ET Monday through Friday, or visit the firm’s website at www.cubcadet.com

Husqvarna Reports 1st Quarter Results

Magnus Yngen, President and CEO: ”The year started off with strong demand in the North American market and we have a strong product line-up to meet the growing demand. However, we have not been able to capitalize on this due to production disturbances in our largest plant in North America. The disturbances negatively affected shipments and increased costs significantly. Costs were approximately SEK 150m higher, whereof the majority in March. We are taking measures in order to resolve the situation and to minimize the impact for our customers but we will continue to have high costs throughout the season. 

For the total Husqvarna Group, sales and operating income adjusted for exchange rate effects and items affecting comparability, increased by 6 and 7 percent respectively, compared to the first quarter previous year. The year started off with significantly higher order intake compared to last year. Europe and Asia/Pacific delivered strong results as a result of higher sell-in and a positive mix development. Construction continued its steady improvement in sales, earnings and margin. As a consequence of the disturbances, operating income for Americas was negative in the first quarter.

• Net sales amounted to SEK 8,774m (9,082) and operating income to SEK 662m (778). Income for the period amounted to SEK 484m (535), or SEK 0.84 (0.92) per share.
• Changes in exchange rates had a negative effect on operating income of approximately SEK -171m.
• Net sales and operating income for the Group, adjusted for exchange rate effects and items affecting comparability, increased by 6% and 7% respectively.
• Net sales and operating income for Americas was negatively affected by production disturbances.
•  Higher volumes and a positive mix contributed to improved sales and operating income for Europe and Asia/Pacific.
• Construction was charged with costs amounting to SEK 40m relating to the closure of a production facility

FIRST QUARTER 

NET SALES

Net sales for the first quarter amounted to SEK 8,774m (9,082). Adjusted for exchange rate effects, sales increased by 6% or by approximately SEK 490m. Sales prices increased slightly. Europe & Asia/Pacific accounted for an adjusted sales increase of approximately SEK 400m or 10%, Americas’ adjusted sales were flat and Construction’s adjusted sales increased by SEK 97m or 18%. 

Market demand for all business areas increased and resulted in higher sales for Europe and Asia/Pacific and Construction. Sales for Americas were negatively affected by the production disturbances in North America. 

OPERATING INCOME

Operating income amounted to SEK 662m (778). Adjusted for exchange rate effects and items affecting comparability operating income increased by 7% or by approximately SEK 50m. Operating income includes items affecting comparability amounting to SEK -40m (-50). 

The increase in adjusted operating income was mainly a result of higher volumes, a favorable sales channel and regional mix and higher sales prices. This was partly offset by additional costs related to the production disturbances in North America. The operating margin, excluding items affecting comparability, declined to 8.0% (9.1). 

Adjusted operating income and operating margin for Europe & Asia/Pacific and Construction improved, but decreased for Americas. 

Changes in exchange rates, including both translation and transaction effects net of hedging, had a total negative effect on Group operating income of SEK -171m (100). Hedging contracts had a negative effect of  SEK -62m (26). 

OUTLOOK FOR THE SECOND QUARTER 2011 

Trade inventories of the Group’s products at the end of the first quarter are estimated to have been on normal levels and slightly higher than a year ago. As market conditions have improved and end-user demand is higher, the sell-out in the trade during the second quarter of 2011 is expected to be higher than in the second quarter of 2010. The Group’s listings with major retailers for the season have improved compared to 2010. However, the production disturbances will continue to have a negative effect on sales and profit. 

FINANCIAL ITEMS NET 

Financial items net amounted to SEK -73m (-88) for the first quarter 2011. Higher interest cost was more than offset by positive mark-to-market valuation on the interest rate component of the Group’s hedge contracts. The average interest rate on borrowings at the end of the first quarter increased to 4.0% (2.9). Compared to year-end 2010, the average interest rate has decreased from 4.8%, mainly due to an increase in share of lower interest rate USD funding for financing of the seasonal increase in working capital. 

INCOME AFTER FINANCIAL ITEMS 

Income after financial items for the first quarter amounted to SEK 589m (690) corresponding to a margin of  6.7% (7.6). 

TAXES 

Taxes amounted to SEK -105m (-155), corresponding to a tax rate of 18% (22) of income after financial items.  

EARNINGS PER SHARE 

Income for the first quarter amounted to SEK 484m (535), corresponding to SEK 0.84 (0.92) per share after dilution.

Net sales for Europe and Asia/Pacific in the first quarter increased 2%. Adjusted for exchange rate effects sales increased 10% or by approximately SEK 400m. Sales prices increased slightly during the quarter.

Total market demand in the Europe and Asia/Pacific region is estimated to have increased compared to the preceding year. The Group’s sales to the dealer channel continued to develop strongly and sales to the retail channel also increased as a result of improved listings. Ride-on and walk-behind lawn mowers and watering products were the product categories with the highest sales growth. Sales increased in major markets such as Germany, France and the UK.

Operating income and operating margin improved. Adjusted for exchange rate effects and items affecting comparability operating income increased by 32% or by approximately SEK 200m. Changes in exchange rates had a negative effect on operating income by approximately SEK -114m.The higher operating income was mainly a result of higher sales and improved product and country mix. Higher costs for direct material were offset by higher selling prices. 

AMERICAS 

Net sales for Americas during the first quarter decreased by 11%.  Adjusted for exchange rate effects, sales were flat. Sales prices increased slightly during the quarter. 

Operating income decreased to SEK -94m (81). Adjusted for exchange rate effects and items affecting comparability operating income declined SEK -175m. Changes in exchange rates had a negative effect on operating income of approximately SEK -50m. Operating income in the first quarter 2010 included items affecting comparability amounting to SEK -50m. There were no items affecting comparability in the first quarter 2011. Operating income was negatively affected by the production disturbances (see below).

Total market demand in North America continued its positive trend. Due to production disturbances, the Group was not able to capitalize on the increased demand. The disturbances led to lower shipments and therefore negatively affected sales as well as leading to significantly higher costs in the range of SEK -150m, whereof the majority in March. The higher costs include costs for a significantly higher number of temporary staff in the plant, over-time compensation as production is running in longer shifts, consultants and lower absorption of fixed costs as the production rate was lower. Due to the disturbances, income was also negatively affected by lower sales of ride-on products and a negative mix. 

The production disturbances are due to the increased complexity of materials, associated with the combination of the move of the production from Beatrice, Nebraska into the production facility in Orangeburg, South Carolina as well as a significantly higher number of new products being launched. Extensive measures to resolve the situation and to minimize the impact for customers have been taken. The production increased gradually during the quarter, as did the associated cost for measures taken.

CONSTRUCTION

Net sales for Construction in the first quarter increased 8%. Adjusted for exchange rate effects sales increased 18% or by SEK 97m. Sales prices were relatively stable.

Total market demand for construction products continued to improve, especially in Europe and Asia. New product introductions and innovation continued to be an important driver for sales. Trade inventory increased, reflecting the trade’s positive outlook for the industry. Sales increased for all of the business area’s main product categories.

Operating income amounted to SEK -17m (1) and includes a restructuring charge amounting to SEK -40m relateto the closure of the production facility for construction products in Spain. Adjusted for exchange rate effects and items affecting comparability operating income increased by approximately SEK 30m. Changes in exchange rates had a negative effect on operating income by approximately SEK -7m. There were no items affecting comparability in the first quarter 2010.

Excluding the items affecting comparability, operating income and margin in the first quarter improved, mainly as a result of higher volumes and improved mix.

PARENT COMPANY 

Net sales in the first quarter for the Parent Company, Husqvarna AB, amounted to SEK 3,141m (3,036), of which SEK 2,545m (2,460) referred to sales to Group Companies and SEK 596m (576) to external customers. Income after financial items amounted to SEK 216m (766).

Investments in tangible and intangible assets amounted to SEK 83m (69). Cash and cash equivalents amounted to SEK 285m (30) at the end of the quarter. Undistributed earnings in the Parent Company amounted to SEK 17,626m (17,272).

CONVERSION OF SHARES 

According to the company's articles of association, owners of A-shares have the right to have such shares converted to B-shares. Conversion reduces the total number of votes in the company. When such a conversion has occurred, the company is obligated by law to disclose any such changes.

During the first quarter of 2011, 637,975 A-shares were converted to B-shares at the request of shareholders. After the close of the first quarter, another 336,460 A-shares were converted to B-shares at the request of shareholders. The total number of votes thereafter amounts to 178,036,964.6.

The total number of registered shares in the company at March 31, 2011 amounted to 576,343,778 shares of which 134,117,112 were A-shares and 442,226,666 were B-shares.

ANNUAL GENERAL MEETING 2011

The Annual General Meeting of Husqvarna AB (publ) will be held at 16:00 on May 4, 2011, in the Elmia Congress and Concert Hall in Jönköping, Sweden.