Extremely Active 2013 Hurricane Season Expected

May 23 -- A year after Superstorm Sandy, residents along the Atlantic and Gulf coasts should prepare for "an extremely active" 2013 hurricane season, U.S. forecasters say.

There is a "70 percent likelihood" that will be three to six major hurricanes this year with winds above 111 mph, according to the 2013 hurricane outlook unveiled by the National Oceanic and Atmospheric Administration's Climate Prediction Center on Thursday.

During the six-month hurricane season, which begins June 1, forecasters anticipate 13 to 20 named storms (winds of 39 mph or higher). Of those, seven to 11 could become hurricanes (winds of 74 mph or higher).

Those ranges are above normal. According to the National Hurricane Center, the seasonal average is 12 named storms, six hurricanes and three major hurricanes. Hurricane season ends Nov. 30.

The dire forecast comes as many shoreline residents—particularly in New York and New Jersey—are still recovering from Sandy, which killed 147 people and caused more than $75 billion in damage in October 2012. It was the second-costliest hurricane in U.S. history.

The 2012 hurricane season produced 19 named storms, including 10 hurricanes and two major hurricanes—Sandy and Michael, a Category 3 storm that stayed over the open Atlantic. The number of named storms and hurricanes were above average, but the two major hurricanes was below the average of three.

Climate factors—including warmer-than-average water temperatures in the Atlantic Ocean—contributed to 2013's active forecast, the NOAA said.

And homeowners should begin their storm preparations now.

"Take time to refresh your hurricane preparedness plan," Kathryn Sullivan, NOAA acting administrator, said during a news conference in College Park, Md., on Thursday. "Bottom line is become weather-ready now—that means starting today."

NOAA also unveiled plans for a new "supercomputer" that will run an "upgraded Hurricane Weather Research and Forecasting models." That, combined with new Doppler technology from NOAA's"hurricane hunter" aircraft, is expected to improve forecast accuracy "by 10 to 15 percent," the NOAA said.

The seasonal hurricane outlook does not predict how many storms will hit land or where a storm will strike. For people living on the shorelines, Sullivan said, "this is your warning."

Ventrac Receives Presidential Award For Export Growth

WASHINGTON – May 20 -- U.S. Acting Secretary of Commerce Rebecca Blank today presented Venture Products, Inc. with the President’s “E” Award for Exports at a ceremony in Washington, D.C. The “E” Awards are the highest recognition any U.S. entity may receive for making a significant contribution to the expansion of U.S. exports.

“I am delighted to be recognizing this year’s Presidential ‘E’ Award winners for their outstanding contributions to U.S. exports and congratulate Venture Products, Inc. on its outstanding export achievement,” said Acting Secretary Blank. “It is businesses like Venture Products that are strengthening the economies of local communities, creating jobs, and contributing to the worldwide demand for ‘Made in the USA’ goods and services.”

“Exporting has enabled us to diversify our revenue streams and weather changes in the marketplace. It allows us to mitigate risk while boosting our competitiveness and bottom lines,” stated Dallas Steiner, President of Venture Products. He adds, “Our products are exported to over 20 countries, with the strongest countries of export being Sweden, Japan, South Korea and Australia.”

Randy Kitzmiller, Director of Operations for Venture Products said, “Export sales over the past three years have grown 80 percent. This growth has allowed us to double our work force and build a new manufacturing facility in Orrville, Ohio.” 

Venture Products, Inc., located in Orrville, Ohio, is the manufacturer of Ventrac compact tractors and commercial grade attachments. Ventrac tractors are unique; the design includes an articulating frame, front-mounted attachments, and all-wheel drive traction in a compact design..

U.S. exports hit an all-time record of $2.2 trillion in 2012, and supported nearly 10 million American jobs. President Obama’s National Export Initiative, which aims to double U.S. exports by the end of 2014 and support an additional 2 million jobs in the United States, is opening new avenues for U.S. exporters through enhanced export assistance and a strengthened trade agenda that is targeting emerging markets and industry sectors across the globe.

President Kennedy revived the World War II “E” symbol of excellence to honor and provide recognition to America's exporters. The “E” Award Program was established by Executive Order 10978 on December 5, 1961. A total of 57 U.S. companies were presented with the President’s “E” Award this year.

U.S. companies are nominated for the “E” Award for Exports through the Department of Commerce’s U.S. and Foreign Commercial Service office network, located within the Department’s International Trade Administration, which has offices in 108 U.S. cities and more than 70 countries to help U.S. exporters.  Four years of successive export growth and an applicant’s demonstration of an innovative international marketing plan that led to the increase in exports is a significant factor in making the award.

The Toro Company Reports Record Second Quarter Results

THE TORO COMPANY REPORTS RECORD SECOND QUARTER RESULTS

·         Sales increase to record $704 million for the quarter

·         Quarterly net earnings per share up 17 percent to a record $1.32

·         Late spring impacts momentum in quarter

·         Company tempers sales growth expectations and maintains earnings outlook

BLOOMINGTON, MN -- May. 23 -- The Toro Company today reported net earnings of $78.4 million, or $1.32 per share, on a net sales increase of 1.9 percent to $704.5 million for its fiscal second quarter ended May 3, 2013. In the comparable fiscal 2012 period, the company delivered net earnings of $68.8 million, or $1.13 per share, on net sales of $691.5 million.

For the first six months, Toro reported net earnings of $109.8 million, or $1.85 per share, on a net sales increase of 3 percent to $1,149.1 million. In the comparable fiscal 2012 period, the company posted net earnings of $88.7 million, or $1.46 per share, on net sales of $1,115.3 million.

“We achieved record sales and earnings in the quarter, despite this year’s challenging weather pattern compared to a year ago,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “In 2012, we enjoyed ideal spring conditions with a warm, early start to the season, while this year much of North America and Europe have dealt with unusually cold weather. These conditions delayed sales, especially of our residential products which are more immediately impacted by weather.

Improved market conditions for some of our professional customers, combined with new products and solid execution, fueled shipment growth that offset the delay of our residential shipments. Through the first six months, our golf and micro irrigation businesses have been strong, and our professional sales in Europe and Asia are ahead of last year. While our earnings benefited from mix and timing, I’m pleased to see our productivity efforts yielding results on the path to our Destination 2014 operating earnings goal.”

“Even with a marginal winter season and late start to spring, we remain cautiously optimistic about the remainder of the year,” said Hoffman. “Retail activity in our residential business started to pick up in late April, and the momentum is continuing in May. Looking forward, we face favorable comparisons to last year, when much of the United States struggled with drought conditions during the summer months. Since we are not likely to make up all of the impact from the late start to spring, including a resulting increase in field inventory, we are tempering our revenue growth expectations for the year. Despite lower sales growth, we are maintaining our earnings outlook on the strength of productivity gains and favorable commodity trends, somewhat offset by anticipated pressures from mix and manufacturing utilization in the second half of the year.”

The company now expects revenue growth for fiscal 2013 to be about 3 to 4 percent, and continues to expect net earnings to be about $2.40 to 2.45 per share, or an increase of about 12 to 15 percent over fiscal 2012.

SEGMENT RESULTS

Professional

Professional segment net sales for the second quarter totaled $496.4 million, up 8.9 percent from the prior year period. Shipments of landscape contractor equipment increased on channel demand in anticipation of the upcoming season. Rental and construction equipment sales were up on strong rental customer demand and incremental sales from the Stone acquisition.

Worldwide sales of golf equipment and irrigation increased on improved budgets that enabled customers to replace aging fleets and systems with new innovative products. Global micro irrigation sales increased on continued demand for more efficient irrigation solutions for agriculture. For the first six months, professional segment net sales were $825.6 million, up 11.6 percent from the comparable fiscal 2012 period.

Professional segment earnings for the second quarter totaled $112.3 million, up 13.8 percent from the prior year period. For the first six months, professional segment earnings were $173.0 million, up 22.9 percent from the comparable fiscal 2012 period.

Residential

Residential segment net sales for the second quarter totaled $201.4 million, down 13.2 percent from the prior year period. Unfavorable weather delayed the start of the spring goods selling season, negatively impacting the sales of walk power mowers and riding products. For the first six months, residential segment net sales were $322.3 million, down 12.8 percent from the comparable fiscal 2012 period. The year-to-date sales results were largely attributable to the unusually mild winter and the late start to spring.

Residential segment earnings for the second quarter totaled $24.7 million, down 13.5 percent from the prior year period. For the first six months, residential segment earnings were $36.8 million, down 10.4 percent from the comparable fiscal 2012 period.

OPERATING RESULTS

Gross margin for the second quarter improved 180 basis points to 35.8 percent due to segment mix, coupled with productivity gains and selective price increases. For the first six months, gross margin was up 210 basis points to 36.4 percent.

Selling, general and administrative (SG&A) expense as a percent of sales increased 50 basis points for the second quarter to 19.1 percent. For the first six months, SG&A expense increased 40 basis points as a percent of sales to 22.1 percent. For both periods, the increase in SG&A as a percent of sales was a result of higher warehousing expense, incremental costs from acquisitions, increased engineering spending, and higher health insurance costs.

Operating earnings as a percent of sales increased 130 basis points to 16.7 percent for the second quarter, and was up 170 basis points to 14.3 percent for the year to date.

The effective tax rate for the second quarter was 32.6 percent compared with 34.1 percent in the same period last year. For the year to date comparison, the tax rate decreased to 31.3 percent from 34 percent. The decrease in both periods was primarily the result of the reenactment of the Federal Research and Engineering Tax Credit.

Accounts receivable at the end of the second quarter totaled $307.8 million, up 12.8 percent from the prior year period. Net inventories were $310 million, up 23.6 percent from last year’s second quarter. Trade payables were $203.7 million, up 3.7 percent compared with last year.

About The Toro Company

The Toro Company (NYSE: TTC) is a leading worldwide provider of innovative turf, landscape, rental and construction equipment, and irrigation and outdoor lighting solutions. With sales of more than $1.9 billion in fiscal 2012, Toro’s global presence extends to more than 90 countries through strong relationships built on integrity and trust, constant innovation, and a commitment to helping customers enrich the beauty, productivity and sustainability of the land.

Since 1914, the company has built a tradition of excellence around a number of strong brands to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields. More information is available at www.thetorocompany.com.

Horst Pudwill Emerges as U.S. Housing Recovery Boosts Techtronic Industries Exports

May 22 -- Horst Julius Pudwill, chairman of Hong Kong-based Techtronic Industries, has emerged as a new billionaire as shares of the power equipment supplier surged by more than 100% in the past year. With the bulk of its manufacturing facilities in southern China, the company delivered record revenues and profit in 2012, boosted by strong sales of power tools and floor care products in the U.S. and European markets.

Benefiting from a nascent recovery in the U.S. housing market and strong cost controls, Techtronic’s group sales increased 8.4% to $3.67 billion in 2012. Profit grew 32% to $201 million.  The share price has climbed 111% in the past twelve months. Pudwill, 69, who owns a bit more than 20% of the company, has seen his net worth jump to over $1 billion, Forbes calculates.

Pudwill first visited Hong Kong from Germany in the mid-1970s as a sales and marketing representative promoting Volkswagen vehicles. In 1985, along with business partner Roy Chung Chi-ping, he founded Techtronic Industries in Hong Kong, which had six employees and focused on producing rechargeable battery packs in hand tools. It later assembled tools for overseas brands. In the 1990s, it began buying up consumer brands. Today, the company has grown to be one of the world’s largest suppliers of cordless power tools and floor care appliances. It employs over 20,000 people worldwide.

In 2000, Techtronic purchased North American power tool operations previously owned by Japan-based Ryobi Limited. It acquired Milwaukee power tools along with AEG, from a Swedish group in 2005 for $626 million. In 2007, Techtronic bought the ailing Hoover brand from Whirlpool WHR -0.34% for $107 million, and turned around the money-losing business.

Pudwill retired as CEO in 2008 but remains chairman of the company.

Techtronic is best known for brands like Milwaukee Electric Tools, Homelite outdoor products, and Dirt Devil and Hoover vacuum cleaners. Consumers in Europe and Australia might be more familiar with its Ryobi and Vax brands. Some 74% of revenues come from the U.S. market and 20% from Europe.

Product demand in the US is benefiting from a recovery in housing and from the reconstruction efforts following Hurricane Sandy., J.P. Morgan Hong Kong analysts Leo Chik and Andrew Hsu said in a recently-released report.

Fueled by the housing market growth, Techtronic’s largest customer, Home Depot HD -1.44%, just reported higher-than-expected results for the first quarter of 2013, and raised its sales and profit outlook for the year. Similar to Home Depot, Techtronic has seen increased demand for tools and power generators after Hurricane Sandy.  Power tool sales in the U.S. grew 10% in the first half of 2012, the analysts said. Milwaukee, the primary professional brand for Techtronic, grew by 23.7% driven by strong demand from U.S. contractors for its new “Fuel” line of brushless motor products launched recently. In Europe, professional tool sales also grew double digits.

The analysts expect lower material costs and an appreciating Euro could help raise 2012 and 2013 EBIT (earnings before interest and tax) margins to a five-year high of 6.7%, rising to 9.7% by 2015 with increased sales growth. However, the key risks to its businesses are rising cost of production in China and a slower-than-expected recovery in US demand.

Headquartered in Hong Kong, Techtronic maintains manufacturing and research facilities in Asia and North America, as well as a customer servicing network in North America, Europe and Australasia.  But the bulk of its manufacturing is in southern Chinese city of Dongguan.

Pudwill holds a master’s degree in engineering and a general commercial degree. He is married to Barbara Pudwill. Their son Stephan Horst Pudwill, 37, joined Techtronics in 2004 and now serves as president of strategic planning.  Pudwill lives in Hong Kong and enjoys golf and tennis.

www.forbes.com     

Servantage Dixie Sales and Outdoor Division of Henry W. O'Neill and Associates Join Forces

Victor, NY business will operate as Servantage O’Neill Outdoor

GREENSBORO, N.C. (April 9, 2013) — Servantage® Dixie Sales announces today that, as of April 15, it will acquire the Outdoor Division of Henry W. O’Neill and Associates. The O’Neill facility in Victor, NY will operate as Servantage O’Neill Outdoor.

Servantage Dixie Sales is a distributor of a full range of products, parts and accessories from the top name brands in lawn and garden, power equipment and outdoor sporting goods. O’Neill Associates distributes lawn and garden equipment, parts and accessories as well as industrial and commercial products to 14 northeastern states.

“The combination of Servantage Dixie Sales and O’Neill will allow us not only to capitalize on the rich legacy that O’Neill provides,” said Harold Reiter, CEO of Servantage Dixie Sales, “but also enables us to better develop the offerings provided by Servantage Dixie Sales, particularly in the North Eastern USA region. O’Neill brings with it a number of new opportunities for industry expansion.”

“We are very eager about joining forces with the Servantage Dixie Sales team and look forward to continuing to build the combined business,” added Virginia O’Neill, president of O’Neill Associates.

“As Dixie prepares to celebrate its 100-year anniversary and O’Neill Associates enters 61 years of operation, we are well positioned to provide a seamless brand experience for all of our business partners and customers,” said Mike Rounsavall, president of Servantage Dixie Sales. “We look forward to teaming up with O’Neill Outdoor as part of the Servantage network.”

About Servantage® O’Neill Outdoor

Servantage® Dixie Sales is an independent, full-service, value-added distributor of lawn and garden equipment that enhances end-user experiences with consumer products. The combined companies of Servantage Dixie Sales and O’Neill Outdoor have over 150 years of experience. The company’s core competencies are customer service, integrated distribution and logistics, and product-support service networks. As a trusted partner and reliable resource, manufacturers and multiple-store retailers depend on Servantage Dixie Sales to create a seamless brand experience for their customers. Headquartered in Greensboro, NC, the Servantage group now operates distribution centers in Greensboro, NC; Memphis, TN; Victor, NY and Toronto, Canada as well as two contact centers in the US and Canada providing customer support in English, French and Spanish. For more about Servantage Dixie Sales and Servantage O’Neill Outdoor, visit www.servantage.net

CEO Aaron Jagdfeld Leads Generac Growth

May 14 -- Aaron Jagdfeld, 41, runs a fast-growing company with $1 billion in annual ­revenue. He’s president and CEO of ­Generac Holdings, a maker of automatic standby generators based in Waukesha, Wis.

Jagdfeld joined Generac in 1994 and became its chief executive in 2008. In the past two years, its workforce has grown from about 1,400 to approximately 3,000 employees, largely due to acquisitions.

EL: How did you become CEO at such a young age?

Jagdfeld: I started here in finance and later became chief financial officer [in 2002]. I think it’s my deep understanding of the business, the products, the customers, the employees, even the supply chain.

EL: If you were to pick one skill that drives your success, what would it be?

Jagdfeld: Decision-making. You’ve got to make educated decisions through data as a leader. With big decisions, you want to solicit opinions from your team, the board of directors and other stakeholders and understand the impact any one decision will have.

EL: But doesn’t gathering wide-ranging input make it harder to decide?

Jagdfeld: I’ll pick a path, and the input process becomes a validation of that path. You can’t go out to people with an open question and just go in any or all directions they take you. 

EL: What lessons have you learned to make sound decisions?

Jagdfeld: You need to act swiftly and decisively. Don’t wait for a problem to solve itself. People resolve problems. My clock speed runs faster. If I have the data, I’ll advance toward making a decision.

EL: How about personnel decisions?

Jagdfeld: If you see someone failing or flailing, give proper feedback quickly.

EL: As CEO, what metrics do you track?

Jagdfeld: We’re heavy into numbers. We use KPIs [key performance indicators] to make sure our team has the resources to execute properly. But to me, leadership is also about having energy: getting excited about our prospects and our growth.

EL: How do you ex­press that excite­­ment?

Jagdfeld: My role is to develop the team. You turn into a head coach, calling plays and executing plays. I get to be a cheerleader, coach and traffic cop. Confidence comes from the team saying, “We can do this.”

EL: How do you set goals?

Jagdfeld: There’s an art to giving teams the confidence, resources and drive to achieve goals. You want to set goals that don’t disillusion people.

EL: How would you describe Generac’s culture?

Jagdfeld: In 2008, we had a culture shaped by the company’s founder. When I became CEO, I had a blank slate to develop our culture going forward. We created a list of what we wanted to keep and what we wanted to change.

We formed a “Culture Club” of employees to go through the list. We kept elements such as our speed, flexibility and work ethic. We changed to develop more team orientation.

www.businessmanagementdaily.com     

Press Release from Schiller Grounds Care regarding April 24 Article "Schiller Grounds Care's Classen Manufacturing Norfolk Plant To Close"

CORRECTION

In the May 1, 2013, Vol. 180 issue of “OPE-In-The Know”, Item # 10 entitled “Schiller Grounds Care’s Classen Manufacturing Norfolk Plant to Close,” was a cut and paste article taken directly from the Web Site of the Norfolk Daily News located in Norfolk, NE.  www.norfolkdailynews.com

The president of Schiller Grounds Care, parent company of Classen, has informed me that the April 24, 2013, Norfolk Daily News article contained numerous inaccuracies; that the closing of the leased Classen plant is part of a manufacturing consolidation; and that the Classen brand will continue to be manufactured in two other Schiller Grounds Care plants.

We’re delighted to provide you with a press release directly from Schiller Grounds Care giving you the accurate facts about the manufacturing consolidation

Please read the brief press release from Schiller Grounds Care below.

                       

Announcement from Schiller Grounds Care

April 24, 2013

Schiller Grounds Care announced today, it is consolidating its manufacturing operations. Effective immediately, production at its Norfolk, Nebraska facility is being consolidated into two of Schiller’s existing operations, Johnson Creek, WI and Southampton, PA.  The Norfolk facility has been leased since the Classen brand was acquired in 2004.  Approximately 27 full time employees are impacted with several individuals being offered positions to relocate.  The decision to consolidate is in no way a reflection on the work of the Classen employees, nor the talent and pride with which they do it.  This consolidation will help ensure that the performance of Classen products remains best in class, and that Schiller’s costs are structured in a way that will keep it strong, efficient and competitive both in today’s economic environment and into the future.

For further inquiries regarding this announcement, please contact Nina DeRosa, at 215- 357-5110.

CPSC, MTD Products Recalls Cub Cadet Commercial Lawn Mowers Due to Fire Risk

Recall date: APRIL 29, 2013

Recall number: 13-733

Recall Summary

Name of product:

Cub Cadet 2011 Model Year Commercial Zero Turn Mowers

Hazard:

Fuel can leak from the vent valve grommet on top of the fuel tank during operation, posing a risk of fire.

Remedy:

Repair

Consumer Contact:

Cub Cadet; toll-free at (888) 848-6038, from 8 a.m. to 5 p.m. ET Monday through Friday, from 9 a.m. to 5 p.m. ET Saturday, or online at www.cubcadet.com and click on “Product Recalls” for more information.

Recall Details

Units

About 2,100

Description

This recall involves eight 2011 model Cub Cadet commercial zero turn lawn mowers. Models included in the recall are: M54-KH, M60-KH, M60-KW, M72-KW, S6031-KW, S7237-KW, TANK L48 and TANK L60.  Mowers included in the recall were manufactured between January 2011 and December 2011. A label located on the frame under the foot rest lists the model number and the month and year date of manufacture (DOM).

Incidents/Injuries

Cub Cadet has received 106 reports of fuel leaking or seeping from the top of the tank, including one report of a fire. No injuries have been reported.

Remedy

Consumers should immediately stop using the recalled mowers and contact an authorized Cub Cadet service dealer for a free repair. Cub Cadet is contacting its customers directly.

Sold at

Independent Cub Cadet dealers nationwide from January 2011 through January 2013 for between $7,700 and $18,700.

Manufacturer

MTD Products Inc, of Cleveland, Ohio

Manufactured in United States

City of Beatrice Loses a Lawn Mower Pioneer

BEATRICE – May 1 -- A pioneer in the lawn mower industry who helped turn sketches drawn in his basement into two successful businesses passed away Monday evening.

Wilfred H. “Dick” Tegtmeier, 74, of Beatrice, was a familiar face around town and instrumental in co-founding Exmark Manufacturing with three others before branching out on his own to start Encore Manufacturing.

Tegtmeier graduated from Hollenberg High School in Hollenberg, Kan. in 1956 and was the only boy in the class of four. He did not attend college.

Tegtmeier’s career in the mower business began at Kees Manufacturing, where he worked with lawn mowers.

“He started with Kees Manufacturing back in the 1970s and they asked him to develop a line of lawnmowers, said Dick’s son, Doug Tegtmeier. “Around 1983, the opportunity came up where he had a chance to spin off and start Exmark with a couple other guys.

“He was a pivotal guy in the lawn and garden business. They always call Beatrice ‘the lawn mower capital of the world,’ and he was pretty much responsible for the whole thing.”

Exmark began with sketches in the founders’ homes before a prototype was made that was displayed at trade shows.

In 1983, Exmark became one of the first businesses to locate in Beatrice's Industrial Park.

Known for making bold business decisions, Dick left Exmark in 1988 when he formed a new mower company, Encore Manufacturing, which was also located in the Industrial Park -- a move many people questioned at the time.

“When we started Exmark, people said, ‘You’re crazy,’” Dick told the Daily Sun at a company anniversary celebration in 2002. “When we started Encore, they said, ‘You have to be a complete idiot.’”

At the time Dick made that comment, Encore’s business has grown 640 percent since its first year and the building had to be expanded in 1993.

“He pretty much risked everything he had to make Encore work,” Doug said. “It was very risky at the time, but it was also a good market. It was scary.”

Encore employed 42 people at its peak, but after 23 years, a harsh economy took its toll on the business and Dick sold Encore Manufacturing to the China-based World Lawn Power Equipment, on the condition the factory still operate in its Beatrice location.

Beatrice Mayor Dennis Schuster said without the two businesses Tegtmeier helped settle in the area, Beatrice’s Industrial Park would likely be a shell of its current self.

"There would probably be one or two occupied buildings, but Exmark’s homegrown-products were really an anchor," Schuster said. “Dick was one heck of an entrepreneur and someone who will be greatly missed.”

While the public will likely remember Dick Tegtmeier as a pioneer of the lawn mower industry, for his family, memories will extend beyond a savvy businessman to a caring family man.

“He was the best man at my wedding, we loved to golf and he enjoyed playing with his grandson,” Doug said. “He just loved his community, family and friends. He taught me how to be a good man.”

Funeral services will be held at 10:30 a.m. Saturday, May 4, at St. Paul Lutheran Church in Beatrice. A family and friends prayer service will be held at 10:15 a.m. Saturday in the fellowship room of the church.