Generac Announces Expansion into Australian Market

WAUKESHA, Wis., Jul 30 -- Generac Holdings Inc. ("Generac"), a leading designer and manufacturer of generators and other engine powered products, announced that it has signed an exclusive contract with Allpower Industries of Victoria, Australia to sell and service Generac automatic home backup power systems and other products throughout Australia and New Zealand.


"Expanding into new geographies is a key part of our Powering Ahead strategy," said Aaron Jagdfeld, CEO of Generac. "Power outages occur in Australia for many of the same reasons they occur in the U.S.--extreme weather, equipment failures, and construction accidents. It's not a matter of if a power outage will occur; it's when it will occur. Generac leads the market for home backup power in the U.S., and we're excited to partner with such a well-known and reputable company as Allpower and bring our expertise in emergency power generation to homeowners throughout Australia and New Zealand."


Currently, the penetration of home standby generators in Australia and New Zealand is minimal, with no manufacturer having any meaningful level of market penetration. Total single-family households are estimated to be 9.5 million by 2017.


"This partnership is an excellent way to provide additional value to consumers throughout Australia and New Zealand," said John Sinclair, CEO of Allpower. "Allpower prides itself on offering premium power equipment brands to our customers. Generac's reputation in the U.S. is second to none, and we're excited to help them expand their presence here."


Allpower will also sell Generac portable generators, which can be used for emergency power as well as DIY projects, and Generac power washers for homeowners who want to clean everything from outdoor furniture to brick and stone.


Started in 1977 in a small warehouse in Burwood, Victoria with two equipment suppliers and only five product lines, Allpower Industries has grown to offer six premium brands of outdoor power equipment with industry leading warranties and service support. Allpower products are available to consumers and contractors through more than 400 dealers Australia-wide and a 150-strong dealer network across New Zealand, as well as online.


Generac products are targeted for availability in the fourth quarter of this year through existing Allpower dealers. These channels will expand to include major retailers and electrical wholesalers throughout 2013.


About Generac


Since 1959, Generac has been a leading designer and manufacturer of a wide range of generators and engine powered products. As a leader in power equipment serving residential, light commercial, industrial and construction markets, Generac's power products are available through a broad network of independent dealers, retailers, wholesalers and equipment rental companies. The company markets and distributes its products primarily under its Generac and Magnum brand names.

Husqvarna Interim Report January - June 2012

Stockholm July 19, 2012

Hans Linnarson, President and CEO:

“Growth in the North American market continued, but the demand for forestry and garden products slowed down towards the end of the quarter. In the European markets, demand was hampered by unfavorable weather as well as weaker market conditions.

Group net sales for the second quarter were on the same level as the corresponding quarter in the previous year, adjusted for currency effects. Sales for Americas grew double digit, supported by improved factory delivery performance and a more favorable business environment, while sales for Europe & Asia/Pacific decreased.

Sales of professional products in the dealer channel in Europe & Asia/Pacific increased in spite of the weak market conditions. In the retail channel, sales of watering products declined. Robotic mowers continued to perform well in both channels.

For Construction, the trend from the first quarter with growth in the North American market continued and the European markets remained challenging.

Group operating income for the second quarter increased by 12%. Operating income was affected positively by the volume growth in the dealer channel and lower production costs. The operating margin for Europe & Asia/Pacific remained on a high level, in spite of the negative impact from unfavorable weather. Additionally, our ongoing focus on working capital has resulted in a positive development of cash flow.

Customer service, delivery reliability and cash flow are some of the Group’s top priorities for 2012, and I am pleased to note the significant improvement achieved in the first half year.

Looking ahead, the immediate market development in Europe as well as in North America is difficult to assess.

Second quarter

• Net sales amounted to SEK 10,706m (10,179). Adjusted for exchange rate effects, net sales were unchanged.
• Operating cash flow improved to SEK 2,535m (1,587).
•  Positive sales development and market share gains for Americas and Construction, weather related downturn for Europe & Asia/Pacific.
•  Operating income increased 12% to SEK 1,136m (1,012). Higher operating income for Americas and construction, lower for Europe & Asia/Pacific.
•  Earnings per share increased to SEK 1.36 (1.18).

SECOND QUARTER

Net Sales

Net sales for the second quarter increased by 5% to SEK 10,706m (10,179). Adjusted for exchange rate effects, net sales for the Group were unchanged, Americas increased by 11%, Construction increased by 3% while sales for Europe & Asia/Pacific decreased by -8%.

Operating Income

Operating income for the second quarter increased by 12% and amounted to SEK 1,136m (1,012) and the corresponding operating margin rose to 10.6% (9.9). Operating income increased for Americas and Construction.

Operating income was positively affected mainly by lower production costs, improved pricing, higher sales in North America and in the dealer channel in Europe & Asia/Pacific, while product mix had a negative impact mainly due to weather related lower sales of consumer watering products.

Changes in exchange rates had a total positive effect on operating income of approximately SEK 37m, compared with the second quarter 2011, of which transaction effects amounted to SEK -62m (62), translation effects amounted to SEK 0m (-5) and change in value of currency hedging contracts amounted to SEK 67m (-89).

In the second quarter 2011, operating income was negatively impacted by SEK -180m referring to costs

directly related to production disturbances, of which SEK -158m affected Americas and SEK -22m affected

Europe & Asia/Pacific.

FIRST HALF YEAR

Net sales

Net sales for the first half year January – June increased by 8% to SEK 20,517m (18,953). Adjusted for exchange rate effects, net sales for the Group increased by 4%, for Americas by 15%, for Construction by 7%, while sales for Europe & Asia/Pacific decreased by -4%.

Operating income

Operating income for the first half year increased by 23% to SEK 2,051m (1,674) and the corresponding operating margin rose to 10,0% (8,8). Operating income increased for Americas and Construction.

Operating income was positively affected mainly by lower production costs and improved pricing, while product mix had a negative impact mainly due to weather related lower sales of consumer watering products.

Changes in exchange rates had a total positive effect on operating income of approximately SEK 104m, compared with the first half year 2011, of which transaction effects amounted to SEK -65m (82), translation effects amounted to SEK 0m (-8) and change in value of currency hedging contracts amounted to SEK 92m (-151).

In the first half year 2011, operating income was negatively impacted by SEK -330m referring to costs directly related to production disturbances, of which SEK -290m affected Americas and SEK -40m affected Europe & Asia/Pacific.

FINANCIAL ITEMS NET

Net financial items for the second quarter amounted to SEK -106m (-115) and for the first half year to SEK -227m (-188). The average interest rate on borrowings at the end of the second quarter was 3.9% (4.1).

INCOME AFTER FINANCIAL ITEMS

Income after financial items for the second quarter increased to SEK 1,030m (897) corresponding to a margin of 9.6% (8.8). For the first half year, income after financial items increased to SEK 1,824m (1,486) corresponding to a margin of 8.9% (7.8).

TAXES

Taxes for the first half year amounted to SEK -407m (-321), corresponding to a tax rate of 22% (22) of income after financial items.

EARNINGS PER SHARE

Income for the second quarter increased to SEK 785m (681), corresponding to SEK 1.36 (1.18) per share. Income for the first half year increased to SEK 1,417m (1,165), corresponding to SEK 2.46 (2.02) per share.

OPERATING CASH FLOW

Due to the seasonality of the Group’s operations operating cash flow is normally positive in the second quarter, following a negative cash flow in the first quarter. Operating cash flow for the first half year improved to SEK 92m (-1,222). The higher operating cash flow was mainly due to higher income after financial items and a reduction of operating working capital, which was positively impacted by lower inventory and trade receivables.

FINANCIAL POSITION

Group equity as of June 30, 2012, excluding non-controlling interests, amounted to SEK 12,716m (12,174), corresponding to SEK 22.2 (21.6) per share.

Net debt as of June 30 amounted to SEK 7,811m (7,632) of which liquid funds amounted to SEK 1,658m (1,615) and interest bearing debt amounted to SEK 9,469m (9,247). The major currencies used for debt financing are SEK and USD. In the first half year, net debt increased by SEK 75m as a result of changes in exchange rates.

The net debt/equity ratio amounted to 0.61 (0.62) and the equity/assets ratio to 40.4% (39.1).

On June 30, 2012, long-term loans including financial leases amounted to SEK 5,211m (5,398) and short-term loans including financial leases to SEK 3,850m (3,593). Long-term loans consist of SEK 2,526m (2,713) in issued bonds, and bank loans of SEK 2,685m (2,685). The issued bonds and the bank loans mature in 2013 and onwards. The Group also has an unutilized SEK 6 bn syndicated revolving credit, with maturity in 2016.

PERFORMANCE BY BUSINESS AREA

Europe & Asia/Pacific

Net sales for Europe & Asia/Pacific in the second quarter decreased by -7%. Adjusted for exchange rate effects, net sales decreased by -8%, compared to a strong second quarter of 2011. For the first half year, sales decreased by -3%. Adjusted for exchange rate effects, the decline was -4%.

The decline in the second quarter was mainly a result of a weather related drop in sales of watering products in the retail channel. Sales of Husqvarna branded products, including robotic mowers, in the dealer channel increased. In terms of markets, sales declined in most countries in Europe, whereas sales in the Asia/Pacific region were flat.

Operating income for the second quarter amounted to SEK 1,004m (1,079) and the operating margin remained at a high level, 18.8% (18.8). Operating income for the second quarter was positively impacted by the growth in dealer channel sales, while product mix due to the lower watering sales had a negative effect. Operating income for the first half year amounted to SEK 1,837m (1,894) and the operating margin remained at a high level, 18.4% (18.4).

Changes in exchange rates had a positive year-on-year effect on operating income of SEK 40m in the second quarter and SEK 112m in the first half year.

Americas

Net sales for Americas in the second quarter increased by 23%. Adjusted for exchange rate effects, net sales increased by 11%. For the first half year, sales increased by 23%. Adjusted for exchange rate effects, the increase was 15%.

Sales continued to grow double digit in the U.S. also in the second quarter, resulting in market share gains in some areas. Demand for forest and garden products increased and sales were also supported by better production output. In terms of products, ride-on and walk-behind mowers had the best development. Sales in Canada and Latin America were also higher.

Operating income for the second quarter amounted to SEK 85m (-98) and the corresponding operating margin was 1.9% (-2.7). For the first half year, operating income amounted to SEK 166m (-192) and the corresponding operating margin was 1.9% (-2.6). Operating income for the second quarter as well as for the first half year was positively affected by the higher sales volumes and lower production costs.

Changes in exchange rates had a negative year-on-year effect on operating income of SEK -3m in the second quarter and a neutral effect in the first half year.

Construction

Net sales for Construction in the second quarter increased by 10%. Adjusted for exchange rate effects, net sales increased by 3%. For the first half year, sales increased by 12%. Adjusted for exchange rate effects, the increase was 7%.

Market demand in the US rose compared with the second quarter in the previous year, as a result of higher construction activity and a continued product replacement need. Market conditions in Europe were difficult, with southern Europe as the weakest area. Demand increased in the rest of the world, but at a slower pace.

The business area’s sales in the U.S. market developed positively in all product categories during the second quarter, and market shares are estimated to have increased. In Europe, sales were slightly lower than in the second quarter of the previous year, which was in line with the market trend.

Operating income for the second quarter increased to SEK 85m (75) and the operating margin improved to 10.5% (10.3), mainly as a result of higher sales volumes. Operating income for the first half year increased to SEK 124m (59) and the operating margin increased to 8.0% (4.3), mainly as a result of higher sales volumes.

Operating income in Q1 2011 was charged with restructuring costs of SEK -40m.

Changes in exchange rates had a neutral year-on-year impact on operating income in the second quarter and a negative effect of SEK -10 in the first half year.

PARENT COMPANY

Net sales in the first half year 2012 for the Parent Company, Husqvarna AB, amounted to SEK 6,886m (6,538), of which SEK 5,365m (4,931) referred to sales to Group companies and SEK 1,521m (1,607) to external customers.

Income after financial items amounted to SEK 588m (671). Income for the period was SEK 461m (582).

Investments in tangible and intangible assets amounted to SEK 164m (165). Cash and cash equivalents amounted to SEK 25m (280) as of June 30, 2012. Dividends amounting to SEK 17m (283) are included in net financial items for the first half year. Undistributed earnings in the Parent Company amounted to SEK 16,991m (17,179).

Ventrac Breaks Ground on New Ohio Facility

Orrville, Ohio – June 26 -- Venture Products, Inc., recently broke ground for a new manufacturing facility, located on their twenty-one acre site at 500 Enterprise Drive, located just north of Smith Dairy at 1381 Dairy Lane in Orrville’s newest industrial park.

In attendance was Dallas Steiner, President and CEO of Venture Products, Inc., along with company executives, city officials, and community development members. “We are excited for this opportunity as we focus on the future and expand our capabilities and capacities to make this location the corporate/global headquarters for Ventrac,” states Dallas.

Ventrac has experienced significant growth the past few years and find they are exceeding the capacities of their two current manufacturing facilities. The new 116,400 sq-ft facility will allow Ventrac to house all operations at one location. The project will be completed in three phases, taking place over the course of three years. Phase one will house research and development, fabrication, welding, parts and warehouse departments. When completed, all operations, including corporate offices, assembly, paint, purchasing, marketing, and sales will be conducted under one roof.

“Ventrac has been blessed to be in this position of growth and are grateful for the strong dealerships that carry our products,” says Dallas. “Our dealers and customers are very important to us and this new facility will allow Ventrac to better meet their needs.” Mark Steiner, Vice President and Facilities Manager, added, “the new expansion will allow Ventrac to grow its manufacturing capacities, add continued improvement to LEAN manufacturing principles and allow additional purchase of state of the art machinery.”

Dallas thanked employees for stepping up to meet the ever growing sales demands. “Our employees have stepped up and gone above and beyond to help us meet production goals, and I thank each one for their contribution as we grow and expand our product line throughout the world.”

The company will be adding new jobs as a result of the building expansion. “We are looking forward to the expansion project because it will become the future home of Ventrac, which will not only house the current employees,” states Randy Kitzmiller, Director of Operations, “but will also allow us to grow and add even more employees in the future.”

Dallas and Mark Steiner concluded the groundbreaking event by scooping dirt with two of the companies’ Ventrac tractors with power bucket attachments as a symbolic gesture to this new beginning.

The New Lawn: Shaggy,Chic and Easy on the Mower

July 17 -- Pushing back against perfect lawns, some homeowners are adopting a shaggy-chic look for their properties, planting a long-haired meadow in the backyard, and even in front.

Meadows are naturally pretty and abuzz with blooms and butterflies, but their real appeal is this: Once the meadow is established, mowing is recommended just once a year.

Homeowners and residential landscapers are taking a cue from the wild and woolly designs cropping up in high-profile public spaces.

New York City's elevated High Line has three sections devoted to meadow plantings including feather grasses and wildflowers. The 6-acre Palisades Garden Walk under construction in Santa Monica, Calif., is set to include plantings of grasses and sages under olive and oak trees. Acres of grasslands and meadows feature in plans for Apple Inc.'s new, spaceshiplike headquarters in Cupertino, Calif.

Meadows are "in fashion," says Lisa Tziona Switkin, associate partner at James Corner Field Operations, the New York landscape architects for the High Line and Palisades projects.

Partly it's a backlash against traditional lawns, which get a bad rap because of the quantity of water, chemical fertilizer and energy they tend to consume. "People don't want to be associated with something that wastes resources and energy," Ms. Switkin says.

Many architects and home designers, though, like a meadow's undone look.

When "soft edges contrast nicely with the modern, straight lines of architecture, it makes a nice counterpoint," says Leonard Kady, a New York architect who maintains a wetland meadow at his summer home on 2.5 acres in Washington, Conn.

In Landenberg, Pa., North Creek Nurseries says inquiries for "plugs," or tiny plants, for meadow and other natural-looking landscapes have climbed 60% a year for the past three years. "I get calls pretty much every day about meadows," says sales manager Claudia West. Prairie Nursery Inc., of Westfield, Wis., says sales this year are running 20% ahead of last year.

Meadows can be a sore point with suburban homeowners associations, whose lawn codes often frown upon anything remotely weedy-looking. In Iowa City, Iowa, Mary Losch, 52, had to present a landscape-design proposal for her newly-built three-bedroom house to the subdivision's homeowners association. The plan, in addition to the predictable foundation shrubs and lawn, called for a ribbon of meadow around the perimeter of the 1-acre lot. The Prairie View Estates homeowners' association, which requires that "lots be maintained free of weeds," gave it the go-ahead.

Then there are the neighbors. Last year, when Ms. Losch's meadow perimeter was first seeded, it looked weedy and abandoned. Earlier this spring, a neighbor approached her about the "interesting" landscaping.

"I figured it was about time somebody asked," says Ms. Losch, a psychology professor at the University of Northern Iowa. "I explained that it was intentional, that we hadn't just let it go, and that in another year it would be clear. I think she was relieved."

Establishing a meadow is usually a three-year process. Year One, with the yard a ragged mess of soil, seedlings, and weeds, can make some homeowners wonder what they were thinking. At this stage, some people get discouraged and go back to lawn, says Judy Nauseef, the Iowa City landscape designer who handled Ms. Losch's property.

"You have to get over the sense that it's going to be all neat," says Bill Montgomery, 51, a New York-based money manager who had a meadow designed for his Lakeville, Conn., summer home two years ago.

Larry Weaner, the Glenside, Pa., designer who created Mr. Montgomery's meadow, recommends keeping it sheared at 6 to 12 inches for the first year. Use a conventional mower set at the highest height, or a weed-whacking device, about once every four weeks in spring and summer. That prevents weeds from reseeding and encourages the desirable plants to focus energy on developing strong roots, not blooms.

By Year Three, you should be able to put the mower away, Mr. Weaner says. Then, a once-a-year mow-down in late winter is all that is needed. No watering, no fertilizing.

Meadows are flowering and at their best from mid-spring to summer. To keep things interesting in the dead of winter, meadow designers say it's important to plant grasses, which offer movement and texture when nothing is flowering.

Meadows don't have to look completely wild, designers say. An urban meadow can be made up of a few select species planted in drifts, which soften stone walkways or patios.

At least half of meadow plantings should be grasses, Mr. Weaner says. Not only do their root systems help stabilize soil and inhibit weeds, but they also offer movement, texture and year-round interest—even when the blooms have long disappeared. Otherwise, "when flowers are finished, all you're left with are a bunch of dead flowers," says John Greenlee, a Brisbane, Calif., meadow designer and co-author of "The American Meadow Garden." Grasses are "the framework that the flowers have to hang on."

To establish a meadow, it usually takes 10 to 20 pounds of wildflower and grass seed for each acre, says Howard Bright, president of Ion Exchange, a specialty nursery in Harpers Ferry, Iowa. Using the nursery's "short prairie" seed mix, which costs $125 per pound, the cost to cover a half-acre property in seed would run from $625 to $1,250.

It was relief from the weekly mow that drew Jeff Holmes, a 42-year old professor in Charlottesville, Va., to the idea of a meadow. After construction of his modern four-bedroom house was completed two years ago, he had to decide what to do with the yard. The rural 5-acre property surrounded by forest has a tenuous water supply from a well. "There's not a lot of ground water here and we had no interest in dumping water on a giant lawn," Mr. Holmes says.

He hired J.W. Townsend Inc., a Charlottesville landscape company, which removed all existing vegetation with an application of herbicide in fall 2010, followed by another in spring 2011. In June last year, the yard was ready to be seeded with grasses and wildflowers selected by the company's meadow specialist, Ed Yates, to work well with the region's hard-packed soil and dry conditions.

Some of Mr. Yates's favorites included an annual tickseed (Coreopsis tinctoria), useful because it would flower in the first year. In the meadow's second year, a succession of blooms has already appeared, starting in spring with evening primroses (Oenethera speciosa) and white yarrows (Achillea millefolium) and orange blanketflowers (Gaillardia aristata) blooming now.

Marc Pastorek, a garden designer and meadow specialist in Covington, La., says grasses in the moist, deep South are typically longer than the short-haired meadows of drier climates. The region's hard-packed clay soil welcomes a unique mix of plants with deep-penetrating root systems. Some of his favorites include Rattlesnake Master (Eryngium yuccifolium) and Prairie Blazing Star (Liatris pycnostachya).

For the meadow Mr. Pastorek designed for a 2.5-acre property in Grand Junction, Colo., the plants were remarkably different, including blue grama grass (Bouteloua gracilis), Buffalograss (Bouteloua dactyloides) and Silver lupine (Lupinus albifrons), which grow best in drier conditions.

"You learn so much about your natural landscape by these plantings," Mr. Pastorek says. "The obstacle is producing it without it becoming an eyesore."

Anne Marie Chaker    www.professional.wsj.com