Don Crader, CEO of Crader Distributing, Passes

Donald "Don" Crader, 81, CEO of Crader Distributing Co. in Marble Hill, Mo., and its sister organization, Blue Mountain Equipment in McKinney, Texas, died Sunday at Southeast Hospital. He was 81.

Crader Distributing Co. was founded in 1944 by Buford Crader, Don Crader's father, and two partners, according to the company's website. It is the exclusive distributor of STIHL outdoor power equipment in Missouri, Kansas, Nebraska and Southern Illinois.

The company has done business with many family-owned dealers for about 50 years.

Jim Riley, founder of Red Letter Communications, said in an email to the Southeast Missourian that about 25 years ago, Don and his son Stan Crader gave him one of his first business opportunities, introducing Red Letter Communications to STIHL.

"We've been business associates and friends ever since," he said.

What started with the sale of a few chain saws out of Don Crader's trunk was built into "one of the largest STIHL sales and distribution organizations in the world," but Don measured success by his family, along with his relationships with his employees and the community, Riley said.

Crader was a member of The Gideons International, a supporter of the Southeast Missouri University Foundation and a member of the Harmony Congregational Methodist Church.

Through his business, Crader was able to support and foster success with thousands of small businesses, Riley said, and he always will remember Crader as a gentleman of unwavering integrity.

"While he built a significant enterprise, I think he measured success in life by what he gave and plowed back into helping others," Riley said. "He was a man of faith, and viewed his life as an incredible blessing and privilege -- he loved his country, he loved the land and people. Most of all he loved his family. I was blessed to know him."

Amity Shedd      Southeast Missourian     http://www.semissourian.com/ 

Briggs and Stratton Event in Poplar Bluff, MO, Celebrates $8M Phase 1 Milestone

POPLAR BLUFF, Mo. – February 21 -- Corporate visitors, a luncheon, plant tours and a ribbon cutting ceremony highlighted the celebration marking the completion of the first phase of the $36 million investment Briggs and Stratton Corporation is making in its small engines manufacturing plant in Poplar Bluff, Mo.

The $8 million Phase I project involved extensive remodeling and the moving of machines from the west production facility into the main plant.

"Wow! One word sums it up. It is really remarkable to see what you folks have done," said Todd Teske, president, chairman and chief executive officer at Briggs and Stratton's corporate headquarters in Milwaukee, Wis. "All your hard work was really worth it."

Employees wore T-shirts with the words, "I survived the remodel 2014."

After touring the plant, Teske said he was "very pleased with what this place has become and what it will become in the future" when the production of two new engines starts over the next two years.

"I'm proud of all of you for all your hard work," Teske said. "This plant is one of our shining stars."

Briggs and Stratton also is celebrating the 25th anniversary of its plant in the Poplar Bluff Industrial Park.

"We are celebrating our 25th year here and we are looking forward to a long and bright future in Poplar Bluff," said Mark Melloy, the plant manager.

Teske talked with plant and community leaders during the luncheon and to all the employees in the afternoon.

He also showed a video touting new innovations and new products, including a new engine that is 60 percent quieter and a lawnmower with collapsing handles that can be hung on the wall.

"It takes up 70 percent less floor space in a garage," Teske said.

He also thanked community leaders for their support of Briggs and Stratton.

Community leaders attending the luncheon were Mayor Ed DeGaris; Steve Halter, president of the Greater Poplar Bluff Area Chamber of Commerce;, state Rep. Todd Richardson; Dr. Devin Stephenson, president of Three Rivers College and chamber board chairman; and Dr. Wesley Payne, TRC vice president of learning.

Teske said Briggs and Stratton has been spending a lot of money on training.

"We have been training a lot of people," Teske said. "Our people need a different skill set now."

While discussing domestic and foreign markets, Teske expects to continue to see a recovery from two years ago when sales were down due to the drought. He said the U.S. market was up 3 percent last year and he is hoping for a 4-6 percent growth this year depending on the weather.

Chamber members conducted a ribbon cutting ceremony under a new red banner prior to touring the plant.

During the remodeling project, some interior walls were removed to create more production space and re-arrange the production lines to increase the plant's efficiency.

Now the Briggs workers are able to expand production in less space.

Production space has decreased from 410,000 square feet to 310,000 square feet, according to Melloy.

"The 100,000-square foot west building will now be used for a warehouse," Melloy said.

Briggs and Stratton has added 200 employees over the past nearly two years and now has 1,050.

Joe Wright, senior vice president of Briggs and Stratton and president of the Engine Products Group, spoke briefly.

"I know how hard each of you has worked. Don't let up," Wright said. "We have a long way yet to go. We have to carry on to the finish line and make sure we do it right."

Jesse Sumrall, technical services manager, and Marcus Braddock, the new production control manager, led one of the tour groups.

The starting point was large stacks of 2,500-pound aluminum blocks, which are melted. The molten aluminum flows to 25 die cast machines that make the parts for the small engines.

He and Braddock, who recently moved to Poplar Bluff from a Toyota plant in Mississippi, explained how the seven machine lines and the two assembly lines have been changed to improve the plant's efficiency.

David Silverberg           http://www.dailystatesman.com/

The Toro Company Reports First Quarter Results

• First quarter sales grow to $446 million driven by strong demand for snow products
• Net earnings per share of $0.44 delivered for the quarter
• Company well-positioned for primary selling season with innovative new product offerings

BLOOMINGTON, MN.-- Feb. 20 -- The Toro Company today reported net earnings of $25.9 million, or $0.44 per share, on net sales of $446 million for its fiscal 2014 first quarter ended January 31, 2014. In the comparable fiscal 2013 period, the company delivered net earnings of $31.4 million, or $0.53 per share, on net sales of $444.7 million.

“Significant snowfall across key North American markets this winter season spurred retail demand for our snow products—helping to drive sales for the quarter and providing a solid start to our 2014 fiscal year,” said Michael J. Hoffman, Toro’s chairman and chief executive officer.

“The combination of more abundant snow conditions, stronger international demand and solid execution by our team helped us to temper the challenging year-over-year quarterly comparisons we faced due to the Tier 4 diesel engine transition that accelerated sales of large turf equipment into our first quarter last year. In addition, we finished our first quarter more favorably situated in terms of field inventory levels as compared to last year, considering that pre-Tier 4 equipment sales last year went into our channel while snow products sold this year moved all the way through to end-user customers.”

“Looking ahead to our primary selling season, we are well-positioned across our businesses to drive retail sales and increase our market share. Golf course development and renovations continue to progress and customers and channel partners alike are excited about our innovative new equipment and irrigation offerings, including those featured at the recent Golf Industry Show—the Sand Pro® zero turn mechanical bunker rake, the Multi Pro® advanced spraying systems, and the INFINITY™ golf sprinklers with unique SMART ACCESS™ to internal components.

Landscape contractor equipment sales are poised to benefit from the additional revenues generated by contractors this winter, as well as the increased demand we expect for our zero turn radius mowers featuring new electronic fuel injection and onboard intelligence technologies. Global food demand and increased water use restrictions continue to drive the need for more efficient irrigation solutions for agriculture, including our new Neptune® thin wall drip line with flat emitter technology.

“Although we are optimistic, it is early in our fiscal year, our peak selling season is still in front of us and we remain mindful of the challenges we could face if we encounter unfavorable swings in economic or weather conditions. As such, we will continue to focus on the things we can control—product innovation, customer service, and market execution—as well as our Destination 2014 goals of driving revenue growth and further improving productivity.”

The company now expects revenue growth for fiscal 2014 to be about 5 to 6 percent, and net earnings per share to be about $2.90 to $2.95. For the second quarter, the company expects net earnings per share to be about $1.45 to $1.50.

SEGMENT RESULTS

Professional

Professional segment net sales for the first quarter totaled $295.5 million, down 10.2 percent from the same period last year. This decrease primarily was attributable to strong channel demand in the first quarter of last fiscal year that was not repeated this year for large turf equipment subject to the Tier 4 diesel engine emission requirements that began phasing in for products manufactured after January 1, 2013.

Sales benefitted from pre-season shipments of landscape maintenance equipment, including our zero turn radius products with electronic fuel injection and onboard intelligence technologies, in anticipation of retail demand. Rental and construction equipment sales grew on increased demand for our products, including recently acquired products newly introduced under the Toro brand. Global micro-irrigation sales increased with continued demand for more efficient irrigation solutions for agriculture. Worldwide golf irrigation sales benefitted as customers continued to select our innovative system offerings for new course projects and existing course renovations.

Professional segment earnings for the first quarter totaled $47.5 million, down 21.9 percent from the same period last year.

Residential

Residential segment net sales for the first quarter totaled $147.6 million, up 22.0 percent from the same period last year. This increase primarily was driven by retail demand for our snow products due to significant snowfall across key North American markets this winter season.

Sales also benefitted from pre-season shipments of domestic residential zero turn radius mowers in anticipation of the continuing transition of consumers to this mowing platform, as well as additional shipments of handheld solutions. Offsetting such increases were unfavorable currency exchange rates, primarily relating to the Australian dollar versus the U.S. dollar.

Residential segment earnings for the first quarter totaled $18.1 million, up 49.2 percent from the same period last year.

OPERATING RESULTS

Gross margin for the first quarter was 36.7 percent, a decrease of 60 basis points compared to the same period last year, primarily due to product mix but also affected by unfavorable currency exchange rates and slightly higher commodity costs, somewhat offset by realized pricing.

Selling, general and administrative (SG&A) expense as a percent of sales for the first quarter was 27.6 percent, an increase of 70 basis points compared to the same period last year, primarily due to higher administrative expense, including health care costs, warranty expense, and incremental expense relating to our recently completed China micro-irrigation acquisition, somewhat offset by lower warehousing expense.

First quarter operating earnings as a percent of sales were 9.1% compared to 10.4% in the same period last year.

First quarter interest expense was down 11.7 percent to $3.8 million compared to the same period last year.

The effective tax rate for the first quarter was 33.2 percent compared with 27.7 percent in the same period last year when the company benefited from the retroactive reinstatement of the Federal Research and Engineering Tax Credit.

Accounts receivable at the end of the first quarter totaled $199.8 million, up 10.8 percent from the same period last year. Net inventories were $304.9 million, down 9.2 percent from the same period last year. Trade payables were $192.7 million, up 14.5 percent compared to the same period 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 $2 billion in fiscal 2013, 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.

Exmark Manufacturing Lending a Helping Hand

BEATRICE -- February 14 -- Founded in 1983, Exmark Manufacturing was one of a handful of companies that helped establish Beatrice as the ‘the lawn mower capital of the world.’

With more than 400 employees during peak production periods, Exmark is one of Gage County’s largest employers. It is also one of Gage County’s largest donators. Finance Director Patty Kaufman said the employees of Exmark want the company to be known as a place the community can turn for a helping hand.

“We want Beatrice to be able to count on us for community service. ” Kaufman said. “People can count on us for donations and those types of things. We want to be a good corporate citizen in Beatrice, Neb.”

Exmark has been giving back to the county for years, but it was the company’s 25-year anniversary in 2008 that sparked an increased passion for giving among Exmark employees.

“When our anniversary came along we put together a committee to celebrate our 25 years,” Kaufman said. “That was the start of our community giving committee. We got together and said ‘What could we do? We could have this big party, we could do fireworks.’ Someone came up with the idea of giving back and doing something really cool that the community will remember.”

That idea materialized in the form of Roszell Exmark Park. Located in the Glenover area of Beatrice, the park features basketball and tetherball courts, a playground area, a water fountain and a shelter with picnic tables.

“At the time, the park was out of code,” Kaufman explained. “It had a lot of very worn playground equipment. We tore a bunch of that out and put a bunch of new playground equipment in. We did a complete renovation of the entire area.”

Since that initial project, Exmark has donated funds to renovate a number of parks and playgrounds across Gage County.

“We did a renovation of Charles Park that included benches, Kaufman said. “We donated irrigation and all of the period lighting. In the Wymore Athletic Park we did a renovation to make that handicap accessible and built a retaining wall. They had some issues with the deterioration of a hill. Prairie Playground is the playground at the YMCA. We donated $25,000 to that in the first year of their fundraising. We really kick started their fundraising, and now they’ve been able to raise well over $100,000 for the renovation of that park.”

Exmark was a major contributor to the House of Orange, donating $50,000 to the new athletic complex. The company is also Gage County’s largest contributor to United Way.

“We actually provide them with over half of their total budget,” Kaufman explained. “We were able to give them $72,000 this year. That is phenomenal not only because we place such an emphasis on it, but that money is our employees’ money. It’s not just Exmark writing that check, that is our employees giving of themselves to the community.”

In addition to these large projects and contributions, Exmark also serves a number of smaller fundraisers and organizations, including food drives, ball teams, the Beatrice Mary Family YMCA and the Gage County Fair.

“We place a lot of emphasis on (the fair) because it’s probably the largest event of the year in Gage County,” Kaufman said. “One of the things we started doing years ago was to produce a T-shirt. Our graphic designer here does a design, and we give those away free to every 4-H and FFA member. We also have employees out there every morning picking up trash at the fair. We have people setting up the stage, doing judging or setting up State Fair Square. We’re really involved with that, and we encourage all our employees to be involved.”

Kaufman said much of Exmark’s passion for giving comes from its parent company, Toro.

“That’s really where we get our spirit of giving,” Kaufman explained. “It’s really embedded in their corporation. They’re actually celebrating 100 years this year. They provide us with several programs that we’re able to give to our community.”

Exmark’s latest community service project was the construction of a healing garden at Beatrice Community Hospital. Kaufman said the garden is beneficial for patients, visitors and hospital staff.

“We went to (the hospital) with this idea because we saw some things in the news how green space and beautiful outdoor spaces with flowers and butterflies and birds can really enhance a person’s stay at the hospital,” Kaufman said. “This space has benches and a gazebo. There are two water features with a bubbler and a huge rock where water comes over to create soothing sounds.”

Toro has a number of incentives put in place to encourage community service. One of those incentives is Dollars for Doers, a program where Toro will donate money in exchange for volunteer hours.

“This is a great Toro program where if an employee gives 30 volunteer hours to an organization, then Toro will write a $300 check to that organization,” Kaufman explained. “We have checks going out to volunteer fire departments, area schools and the Beatrice Backpack Program.

Kaufman said Exmark’s sense of community service is truly driven by its employees, whom have a great passion for giving back to their communities.

“There’s so much pride of our employees in these projects. We see this continuing for many years to come.”

Austin Buckner      www.beatricedailysun.com 

Generac Reports Fourth Quarter and Full-Year 2013 Record Revenues

Diversified growth drives strong increase in revenue and earnings as compared to a very strong prior-year quarter and full year

WAUKESHA, Wis., Feb 13, 2014 -- Generac Holdings Inc., a leading designer and manufacturer of power generation equipment and other engine powered products, today reported financial results for its fourth quarter and year ended December 31, 2013. Additionally, the Company initiated its outlook for 2014.

Fourth Quarter 2013 Highlights

Full-Year 2013 Highlights

“2013 was another great year for Generac that helped drive a third consecutive year of record revenues with a compounded annual growth rate of 36% since implementing our Powering Ahead strategy three years ago,” said Aaron Jagdfeld, President and Chief Executive Officer. “Once again we experienced strong growth across all regions of the United States, as home standby generators further gain in popularity and the Generac brand is increasingly recognized as the leading name in backup power.

The secular penetration themes that drive our business continue to play out for our residential and C&I products as we made significant progress on several initiatives to extend awareness for standby generators, leading to further growth. In addition to our organic growth, we executed on three important acquisitions that provide additional product breadth and global scale to our C&I business and improved balance to the overall company.”

Additional Fourth Quarter 2013 Highlights

Residential product sales for the fourth quarter of 2013 were $199.1 million as compared to $216.0 million for the comparable period in 2012. Shipments of home standby generators experienced strong growth over the prior-year quarter as we continue to expand our leading position for these products through our innovative approach to the market.

The strength in home standby generators, however, was more than offset by a meaningful decline in shipments of portable generators due to less severe power outage events in the fourth quarter of 2013 relative to prior year, which included Superstorm Sandy.

C&I product sales for the fourth quarter of 2013 increased 42.7% to $157.9 million from $110.6 million for the comparable period in 2012. The increase was driven by the acquisitions of Ottomotores, Tower Light and Baldor Generators along with strong organic growth for stationary and mobile generators.

The strength in organic revenues was primarily driven by a significant increase in shipments to national account customers and increased sales of natural gas generators used in light commercial and retail applications.

Gross profit margin for the fourth quarter of 2013 was 38.7% compared to 36.9% in the prior-year fourth quarter. Gross margin improved over the prior year due to the combination of an improved product mix and a reduction in product costs due to a moderation in commodity costs and continued execution of cost reduction initiatives. These margin improvements were partially offset by the mix impact from the Ottomotores and Baldor acquisitions.

Operating expenses for the fourth quarter of 2013 declined $3.9 million, or 6.7%, as compared to the fourth quarter of 2012. The expense reduction was driven primarily by warranty rate improvements resulting in a favorable adjustment to warranty reserves of $5.3 million during the current year quarter, as well as a decline in the amortization of intangibles. These reductions were partially offset by the addition of operating expenses associated with the acquisitions of Ottomotores, Tower Light and Baldor Generators.

Interest expense in the fourth quarter of 2013 declined to $12.0 million compared to $16.6 million in the same period last year. The decline was primarily the result of a reduction in interest rate from the current-year credit agreement refinancing completed in May 2013.

2014 Outlook

The Company is initiating guidance for 2014 with revenue expected to grow over a very strong 2013. For the full-year 2014, the Company currently expects net sales to increase in the mid-single digit range as compared to the prior year. This top-line guidance assumes no material changes in the current macroeconomic environment, no major power outage events during 2014, and no benefit from additional acquisitions.

Gross margins are expected to decline by approximately 100 basis points during 2014 as compared to the prior year primarily as a result of a higher mix of C&I product shipments, including the impact of the addition of Baldor Generators.

Operating expenses as a percentage of net sales, excluding amortization of intangibles, are expected to increase approximately 100 basis points as compared to 2013, primarily as a result of favorable adjustments to warranty reserves in 2013 that are not expected to repeat in 2014.

Adjusted EBITDA margins are expected to remain attractive in the mid-20% range, which is consistent with the average level seen during the past four years.

We expect free cash flow generation to remain strong in 2014 due to our superior margin profile, low-cost of debt, favorable tax attributes and our capital-efficient operating model.

“We believe our 2013 financial results are further proof that our strategy is working,” continued Mr. Jagdfeld. “Heading into 2014, our team remains focused on the substantial penetration opportunity that exists for residential and light commercial standby generators, as well as increasing our share of the C&I market through our recently expanded product offering and our continued focus on natural gas generators. 

In addition, we expect to benefit from being a more balanced and globally-focused company as we continue to execute on our diversification and international expansion strategies, both organically and through acquisitions.”

About Generac

Since 1959, Generac has been a leading designer and manufacturer of a wide range of power generation equipment and other engine powered products. As a leader in power equipment serving residential, light commercial, industrial and construction markets, Generac's power products are available globally through a broad network of independent dealers, retailers, wholesalers and equipment rental companies, as well as sold direct to certain end user customers.

CPSC and MAT Recall Air Compressors Due to Shock Hazard

February 12, 2014

Name of product:

HDX™ and Powermate® two-gallon air compressors

Hazard:

The terminals of the pressure switch can come into contact with the motor housing and electrify the air compressors, posing a shock hazard to consumers.

Units

About 100,000 in the United States and 7,000 in Canada

Description

This recall involves HDX™ and Powermate® brand two-gallon electric air compressors.  Each air compressor has a pair of one-gallon tanks that are stacked upon each other. The air compressors are 120-volts, have an operating pressure maximum of 100 PSI and air delivery of .4 SCFM at 90 psi. The HDX™ air compressors are gray with HDX printed in white on the top cylinder.  HDX™ model number/sku numbers include VSP0000201.HDX, VSP0000201.HDX1 and 947282, with numeric serial numbers.

The model and serial numbers are printed on a sticker on the back of the top air compressor cylinder.  The Powermate® air compressors are red with Powermate printed in white on the top cylinder. HDX or Powermate compressors with a letter in the serial numbers are not included.

Powermate® model numbers include VSP0000201, VSP0000201.01, VSP0000201.KIT and VSP0000201.NS with numeric serial numbers.

Incidents/Injuries

None reported  

Remedy

Consumers should immediately stop using the recalled air compressors and contact MAT Industries for a free repair. 

Sold at

The Home Depot and online at homedepot.com (HDX air compressors only), Menards and other stores (Powermate air compressors) nationwide from June 2010 through October 2013 for between $80 and $120. 

Importer

MAT Industries LLC, of Long Grove, Ill.

Manufactured in

China

Consumer Contact:

Industries toll-free at (855) 922-2300 from 9 a.m. to 5 p.m. CT Monday through Friday or online at www.powermate.com  and click on Air Compressors, then VSP0000201 and online at www.homedepot.com and click on Product Recalls for more information.

ARI To Provide Websites to Kymco USA's Dealers

MILWAUKEE – February 11, -- ARI Network Services announced today that it has signed an agreement with KYMCO USA to offer the manufacturer's more than 620 independent dealers in the U.S. KYMCO USA-branded websites.

Harnessing the power of ARI's award-winning dealer website platform, the branded sites will give authorized KYMCO USA dealers exclusive features including factory promotions, pre-loaded inventory data and access to KYMCO USA's image library. In addition, the websites will be included in KYMCO USA's dealer locator.

"We look forward to working with KYMCO USA and their dealers to help drive more traffic, leads and sales not only to their websites, but to dealers' brick and mortar stores," said Roy W. Olivier, ARI President and CEO. "With the majority of consumers researching products online, it's more important than ever for dealers to not only have an online presence, but to make sure that consumers visiting OEM websites can find their dealership."

Each site also includes used equipment pages, which dealers can utilize to load their entire inventory of pre-owned vehicles. Plus, the website enables dealers to automatically feed their inventory data to third-party classified sites, including CycleTrader.com, Motorcycleinventory.com, ATV.com, Motorcycle.com, Chopper Exchange and CarSoup.

"It's very exciting to be partnering with ARI and to have the opportunity to offer our dealers KYMCO USA-branded websites," said Rick Pawelka, KYMCO USA Director of Marketing. "As an emerging brand, it's important that our dealers follow the coordinated national advertising programs developed by KYMCO USA's advertising department. Having a brand-specific, online presence that reflects the image and marketing direction created by KYMCO USA is just another step in the right direction."

About KYMCO USA

KYMCO is the largest scooter manufacturer in Taiwan, and currently exports to 86 countries worldwide. The company's partner in the United States is KYMCO USA, with headquarters, marketing and distribution centered in Spartanburg, South Carolina. 

KYMCO USA is dedicated to building the brand's reputation and market share through superior value, frequent new product introductions, strategic industry partnerships, and excellence in dealer network support. KYMCO USA has a reputation and expertise gained through more than 30 years in the U.S. power sports industry. An ever-expanding dealer network currently serves more than 600 U.S. locations.

About ARI

ARI Network Services, Inc. (ARI) ARIS -0.90%  offers award-winning eCommerce and eCatalog platforms, lead management tools and digital marketing services that help dealers, equipment manufacturers and distributors in selected vertical markets Sell More Stuff!(TM) - online and in-store. Our innovative products are powered by a proprietary data repository of enriched original equipment and aftermarket content that spans more than 10.5 million active part and accessory SKUs, 469,000 models and $1.7 billion in retail product value. 

Business is complicated, but we believe our customers' technology tools don't have to be. We remove the complexity of selling and servicing new and used vehicle inventory, parts, garments and accessories (PG&A) for customers in the automotive tire and wheel aftermarket, power sports, outdoor power equipment, marine, recreational vehicles and white goods industries. More than 22,000 equipment dealers, 195 distributors and 140 manufacturers worldwide leverage our web and eCatalog platforms to Sell More Stuff!(TM).

Blount Updates 2013 Guidance and Provides 2014 Outlook

-- Estimated 2013 full year free cash flow of $67 million; 12% above expectation

-- 2014 sales and earnings outlook provided

-- Strategic plan and long-term targets updated

-- New supply agreement with Husqvarna

-- Forestry plant consolidation nearly completed; blade plant consolidation announced

Portland, OR – February 10 -- Blount International, Inc. today announced updated guidance for the full year ended December 31, 2013 along with preliminary expectations for 2014 and the long-term financial targets of the Company's updated strategic plan. Information contained within this news release is based on estimates of financial results and is unaudited. Actual 2013 financial results will be released near the conclusion of the annual audit process.

Estimated 2013 sales were $901 million, a three percent decrease versus 2012. Estimated 2013 Earnings Before Interest, Taxes, Depreciation, Amortization and certain charges ("Adjusted EBITDA") for 2013 was $125 million compared to $136 million in the prior year. Results exclude any impact of potential non-cash impairment charges related to goodwill and other indefinite lived intangible assets.

"Although our Farm, Ranch, and Agriculture ("FRAG") business outperformed the prior year, the results for our Forestry, Lawn, and Garden ("FLAG") business continued to reflect the soft market demand we experienced throughout 2013. Overall, we expect our results to be below our latest guidance for 2013, particularly in Europe and Asia. Despite the slow market for FLAG products, however, we were able to generate significant free cash flow during 2013, and we paid off debt to retain a strong balance sheet," stated Josh Collins, Blount's Chairman and CEO. "As our preliminary guidance for 2014 indicates, we believe demand will be moderately better in 2014, and we believe both revenue and profitability will improve versus 2013."

"In other news, our Portland, Oregon plant consolidation is nearly complete, and we recently reached a new supply agreement with Husqvarna, which will continue our strong partnership that has endured for several decades," continued Mr. Collins. "We look forward to contributing to Husqvarna's future success as a leading supplier of outdoor power equipment, and we will continue to provide high-quality components that complement their brands."

Estimated Operating Results for the Year Ended December 31, 2013

Blount operates primarily in two business segments - the Forestry, Lawn, and Garden segment and the Farm, Ranch, and Agriculture segment. The Company reports separate results for the FLAG and FRAG segments. Blount's Concrete Cutting and Finishing ("CCF") business is included in "Corporate and Other."

The estimated 2013 FLAG segment sales were about six percent lower than full year 2012, due primarily to continued market softness in Europe, Russia, and Asia. Estimated 2013 FLAG contribution to operating income and Adjusted EBITDA were lower than in 2012 as sales volume declines and higher product costs and mix negatively affected FLAG operating results.

The FRAG segment reported estimated 2013 sales of $260 million, which represents about a four percent increase from 2012 levels primarily due to increased market demand and related shipments of log splitters and tractor attachments. Estimated 2013 FRAG contribution to operating income and Adjusted EBITDA was higher year-over-year as the segment made gains in operating efficiencies and benefited from the stronger demand.

Corporate and Other generated estimated net expense of $26 million in 2013 compared to net expense of approximately $21 million in 2012. The increase in net expense was driven mostly by charges related to consolidation of saw chain manufacturing facilities in Portland, Oregon and a significant increase in estimated fees for our 2013 external and internal financial statement audit services recognized in the fourth quarter. Both the restructuring and the 2013 audit developments are discussed further below.

Segment backlog declined from December 31, 2012 mostly in the FLAG segment, which reflects lower overall demand as customers managed field inventory levels and deferred some orders to 2014.

Cash Flow and Debt

As of December 31, 2013, the Company had estimated net debt of $395 million, a decrease of $71 million from December 31, 2012 and a decrease of $9 million compared to September 30, 2013. Estimated free cash flow of $67 million was generated in 2013 compared to approximately zero in the prior year. Estimated free cash flow was generated by a combination of reduced working capital and reduced capital spending as the Company managed the business to maximize cash flow while addressing softer market demand in 2013. 

Net working capital decreased by an estimated $19 million for 2013 compared to a $21 million increase in 2012. Working capital benefited from higher accounts receivable collection along with inventory reduction in 2013. Estimated net capital spending in 2013 was $30 million, a reduction of about $22 million from the prior year, primarily as a result of lower capacity capital spending in the Fuzhou, China plant. The Company defines free cash flow as cash flow from operating activities less net capital spending.

The ratio of estimated net debt to estimated last-twelve-months ("LTM") Adjusted EBITDA was 3.2x as of December 31, 2013, a decrease from 3.4x at December 31, 2012. The decrease in leverage from the end of 2012 is primarily the result of improved estimated free cash flow and resulting estimated net debt reduction, partially offset by lower estimated Adjusted EBITDA for the year ended December 31, 2013 compared to the prior year.

Other Developments

Restructuring Update

The Company's previously announced consolidation of saw chain manufacturing facilities in Portland, Oregon into one location was substantially completed by December 31, 2013. As part of the consolidation, saw chain manufacturing has been discontinued at the former Carlton Company facility acquired in 2008, and Carlton products are now produced at Blount's other FLAG production facilities. With the consolidation, the Company expects to achieve more timely delivery by manufacturing closer to its customers. The consolidation provided an overall net reduction in global FLAG manufacturing headcount of approximately 200 positions and annual cost savings are expected to be between $6 million and $8 million. 

Estimated expenses of $8 million were incurred in 2013 to accomplish the plant consolidation and other forestry manufacturing workforce reductions, of which nearly $4 million are cash transition costs (including severance and moving expenses) and approximately $4 million represents non-cash charges for accelerated depreciation on equipment to be idled and a write-down of land and building carrying value. Additional expenses of up to $1 million may be incurred in the first quarter of 2014 as the Company completes the transition out of the former Carlton Company facility.

Husqvarna Supply Agreement

Blount recently entered into a new long-term supply agreement with The Husqvarna Group ("Husqvarna"). The Company has been a strategic supplier of forestry-related and other products to Husqvarna for many decades. The new supply agreement expires at the end of 2017, and it replaces the existing supply agreement that would have expired at the end of 2015. Under the terms of the agreement, Blount is the exclusive, third-party supplier to Husqvarna for saw chain products as well as laminated and solid guide bars and certain other chain saw-related parts. The supply agreement also provides a mechanism to extend the contract further into the future, should both companies elect to do so.

Strategic Plan Update

The Company completed a strategic plan review in 2013. Details of our updated strategic plan are included in a Company overview presentation on the Company's web site. As an outcome of our strategic planning, we are targeting 2018 sales of more than $1.1 billion and Adjusted EBITDA of approximately $175 million. Free cash flow generation over the strategic planning horizon will be primarily dedicated to repayment of debt and funding strategic initiatives. At lower leverage levels, we anticipate either paying a dividend or implementing a stock repurchase program in order to return capital to shareholders.

Pentruder Distribution Rights

On January 21, 2014 the Company entered into an agreement with Tractive AB ("Tractive") of Sweden and Pentruder Inc. of Chandler Arizona ("Pentruder") to become the exclusive distributor of Pentruder high-performance concrete cutting systems in the Americas. Blount, through its Concrete Cutting and Finishing brand ICS, will market, sell, and support the Pentruder line of wall saws, wire saws, core drills and all parts and accessories in the Americas through the ICS direct sales team and its Portland, Oregon based headquarters. The agreement offers ICS customers an expanded selection of complementary products.

North America Blade Plant Consolidation

In 2014, the Company will consolidate its North American lawn and garden blade manufacturing into its Kansas City, Missouri plant. Lawn and garden blades have historically been manufactured in Queretaro, Mexico, and Kansas City, Missouri. The Queretaro facility was acquired with PBL in 2011 and brought important blade manufacturing technology to the Company. Once complete, cost reductions of approximately $2 million are expected from the consolidation on a full year basis, including the elimination of approximately 35 manufacturing positions. The Company expects to incur expenses of between $1 million and $2 million in 2014 to consolidate the manufacturing operations, of which approximately half are cash transition costs for severance, dismantling, moving expenses, cleanup, and exit activities, with non-cash charges for accelerated depreciation and equipment impairment charges representing the other half. The Queretaro facility ceased operation on January 23, 2014 and is currently leased through September 2014.

2013 Financial Statement Audit

The Company is working to remediate the internal control weaknesses indicated in our December 31, 2012 Form 10-K/A. However, due to the timing of identification of certain of these internal control weaknesses, we believe that full remediation as of December 31, 2013 is unlikely and may result in disclosure of some material internal control weaknesses in our December 31, 2013 Form 10-K. Determination of any specific control weaknesses and related impacts will be concluded near the filing of our December 31, 2013 Form 10-K.

The Company expects that non-cash impairment charges will be recorded for both goodwill and certain other indefinite-lived intangible assets, both related to acquisitions made in recent years. Accounting principles generally accepted in the United States ("U.S. GAAP") governing the accounting for intangible assets are complex and multiple steps are prescribed in the assessment and determination of related impairment charges. As a result, an estimate of any potential impairment charge resulting from application of the required accounting has not yet been completed. 

Conclusion of the impairment measurement process is expected near the filing of our December 31, 2013 Form 10-K. We have approximately $46 million of goodwill and $6 million of other indefinite-lived intangible assets recorded relating to the acquisitions of SpeeCo and PBL, both of which we believe are at risk for impairment under U.S. GAAP. Any charge taken will be reflected as a non-cash charge to operating income.

Our independent registered public accounting firm has notified the Company that completion of the 2013 audit prior to the deadline for filing the Company's December 31, 2013 Form 10-K is unlikely to occur due primarily to the factors described above. Additionally, estimated fees to complete the audit have increased by approximately $3 million over the amount previously communicated between the parties and resulted in a corresponding, and unexpected, increase in administrative expenses in the fourth quarter of 2013.

2014 Financial Outlook

The Company's 2014 financial targets are for sales to range from $925 million to $950 million and Adjusted EBITDA to range from $130 million to $135 million. Our target for sales assumes growth in FLAG segment sales of approximately four percent and growth in FRAG segment sales of approximately eight percent, both compared to estimated full year 2013 levels. Adjusted EBITDA levels are the result of moderately higher expected demand in FLAG, partially offset by investment spending on strategic initiatives to position our company for long-term growth. Free cash flow is expected in the $35 million range after approximately $45 million of capital spending.

Blount is a global manufacturer and marketer of replacement parts, equipment, and accessories for consumers and professionals operating primarily in two market segments: Forestry, Lawn, and Garden ("FLAG"); and Farm, Ranch, and Agriculture ("FRAG"). Blount also sells products in the construction markets and is the market leader in manufacturing saw chain and guide bars for chain saws. Blount has a global manufacturing and distribution footprint and sells its products in more than 115 countries around the world. Blount markets its products primarily under the OREGON, Carlton, Woods, TISCO, SpeeCo, and ICS brands.

Kubota and Echo Announce U.S. Dealer Alliance

TORRANCE, Calif. – February 11 — Kubota Tractor Corporation and ECHO Incorporated announced today a U.S. Dealer Alliance aimed at growing their combined sales within the commercial turf and consumer lawn and garden markets. As part of the alliance, ECHO and Shindaiwa will become the preferred brands of hand held outdoor power equipment within the Kubota dealer network. The alliance also names ECHO Bear Cat as a preferred brand of chippers, shredders, log splitters and wheeled trimmers within the Kubota dealer network.

According to Todd Stucke, Kubota Vice President of Agriculture and Turf Equipment, the Kubota dealer network includes over 1,100 sales and service locations. “We are excited about the opportunity to bring ECHO, Shindaiwa and ECHO Bear Cat products into the Kubota dealer network,” says Stucke. “These brands are well known in the market and they allow Kubota dealers to position a complete line up of products to commercial landscapers and homeowners alike.”

Mike Best, ECHO Vice President of Sales & Marketing, suggests that the alliance is a natural fit for the two companies. He explains, “There is a tremendous amount of synergy between our companies and brands.” ECHO Incorporated and Kubota Tractor Corporation both have parent companies headquartered in Japan, are both known for engineering and manufacturing professional grade products and both target commercial users and large land owners. “By leveraging our common strengths, both companies will be well positioned for future growth in the months and years ahead,” concludes Best.

A series of joint sales and marketing programs will be rolled out this year, at which time Kubota dealers can begin expanding their customer product offerings to include ECHO, Shindaiwa and ECHO Bear Cat products.

About Kubota Tractor Corporation

Kubota Tractor Corporation, Torrance, Calif., is the U.S. marketer and distributor of Kubota-engineered and manufactured equipment, including a complete line of tractors up to 118 PTO hp, performance-matched implements, hay tools and spreaders, compact and utility-class construction equipment, consumer lawn and garden equipment, commercial turf products and utility vehicles.

About ECHO Incorporated

ECHO Incorporated is a leading manufacturer of professional-grade outdoor power equipment for professional and homeowner use. The corporation markets its products primarily under the ECHO, Shindaiwa and ECHO Bear Cat brand names. The company is based in the Chicago suburbs.

Husqvarna 4th Quarter and Year-End Report for 2013

Stockholm February 6, 2014

Kai Wärn, President and CEO of Husqvarna Group:  “The year ended with a continuation of the positive sales development from the third quarter. Sales for the seasonally weak fourth quarter were up 8%, adjusted for changes in exchange rates, with higher sales in all business areas. The operating loss for the quarter decreased to SEK -308m (-348), excluding items affecting comparability, where the Americas contributed with the largest improvement. In line with the development earlier in the year, the fourth quarter showed an improved cash flow development.

To conclude 2013, the year was off to a slow start, but a stronger second half resulted in a 2% net sales growth for the full year, adjusted for currencies. From a market demand point of view, North America recovered in line with the relatively positive macro economy, while Europe had a more mixed picture.

Efforts to improve working capital were successful. Inventories were reduced, mainly by reduced production levels, resulting in a cash release of SEK 820m and an operating cash flow for the year of SEK 1,813m (1,144). The strong cash flow also supported an improvement of the net debt/equity ratio, which declined to 0.58 (0.75).

Group operating income for 2013 declined to SEK 1,608m (1,931) excluding items affecting comparability, and earnings per share amounted to SEK 1.60 (1.78). The decline in operating income refers to Europe & Asia/Pacific where earnings were impacted by unfavorable changes in exchange rates and the lower factory utilization levels due to the planned inventory reductions. For the Group, changes in exchange rates and under-absorption had a total negative impact on operating income of almost SEK 0.5bn compared to 2012.

For Americas, prior year's large operating loss was turned into a slightly positive result. Growth in the higher-margin dealer channel was double digit and productivity improved. We are now moving into the next phase of the U.S. turnaround and as an important step we have also implemented a new organization for retail and dealer operations.

In Construction, currency adjusted sales increased 6% and the margin rose to above 9%. Higher demand, investments in sales capacity and a strong product portfolio contributed to the positive development.

In 2014-2015, our main priority is to execute and build momentum in our accelerated improvement programs to support margin improvement. In terms of demand, I am cautiously optimistic given the continued improvements in the U.S. economy and by the European indications of stabilization.”

Fourth quarter

·         Net sales amounted to SEK 4,707m (4,476). Adjusted for exchange rate effects, net sales increased 8%.

·         Operating income improved to SEK -308m (-348), excluding items affecting comparability.

·         Earnings per share amounted to SEK -0.53 (-0.87).

Full-year

·         Net sales amounted to SEK 30,307m (30,834). Adjusted for exchange rate effects, net sales increased 2%.

·         Operating income amounted to SEK 1,608m (1,931), excluding items affecting comparability.

·         Earnings per share amounted to SEK 1.60 (1.78).

·         Operating cash flow improved to SEK 1,813m (1,144).

·         Net debt/equity ratio improved to 0.58 (0.75).

·         The Board proposes a dividend of SEK 1.50 (1.50) per share for 2013.

FOURTH QUARTER

Net Sales

Net sales for the fourth quarter increased by 5% to SEK 4,707m (4,476). Adjusted for exchange rate effects, net sales for the Group increased 8%, by 8% for Europe & Asia/Pacific, by 8% for Americas and by 10% for Construction.

Operating income

Operating income for the fourth quarter excluding items affecting comparability amounted to SEK -308m (-348). Including items affecting comparability, it amounted to SEK -308m (-604) and the corresponding operating margin was -6.5% (-13.5).

Excluding items affecting comparability and impact from changes in exchange rates, fourth quarter operating income was positively impacted by the higher sales volume, savings from staff reductions and lower costs for materials, while mainly higher costs for logistics, sales and marketing impacted adversely.

Changes in exchange rates had a total negative impact on operating income of SEK -31m compared to the fourth quarter 2012. Savings from staff reductions amounted to SEK 62m.

FULL YEAR

Net Sales

Net sales for 2013 decreased by -2% to SEK 30,307m (30,834). Adjusted for exchange rate effects, net sales for the Group increased 2%, by 1% for Europe & Asia/Pacific, by 3% for Americas and by 6% for Construction.

Operating Income                                                                                                                                        

Operating income for 2013 excluding items affecting comparability amounted to SEK 1,608m (1,931). Including items affecting comparability, it amounted to SEK 1,608m (1,675) and the corresponding operating margin was 5.3% (5.4).

Excluding items affecting comparability and impact from changes in exchange rates, operating income was positively affected by the higher sales volume, lower material costs and savings from staff reductions, while mainly lower factory utilization levels due to inventory reductions had negative impact.

Changes in exchange rates had a total negative impact on operating income of SEK -349m compared to 2012. Savings from staff reductions amounted to SEK 174m.

FINANCIAL ITEMS NET

Net financial items for the fourth quarter amounted to SEK -125m (-152). Net financial items amounted to SEK -428m (-500) for the full year. The lower financial cost is explained mainly by lower interest rates and lower net debt. The average interest rate on borrowings at December 31, 2013, was 4.0% (4.2).

INCOME AFTER FINANCIAL ITEMS

Income after financial items for the fourth quarter decreased to SEK -433m (-756) corresponding to a margin of -9.2% (-16.9%). Income after financial items for the full year 2013 amounted to SEK 1,180m (1,175) corresponding to a margin of 3.9% (3.8).

TAXES

Tax for the fourth quarter amounted to SEK 129m (258). Tax cost for the full-year 2013 amounted to SEK -264m (-148), corresponding to a tax rate of 22% (12) of income after financial items.

EARNINGS PER SHARE

Income for the full year 2013 amounted to SEK 916m (1,027), corresponding to SEK 1.60 (1.78) per share.

OPERATING CASH FLOW

Operating cash flow for the full year improved substantially to SEK 1,813 (1,144). The improvement relates

mainly to changes in working capital which largely was driven by activities to reduce inventory levels. Cash flow

from operations, excluding changes in operating assets and liabilities, decreased due to the lower result.

The higher capital expenditure was mainly related to the previously communicated investments within the new

manufacturing facility for chainsaw chains in Husqvarna.

Cash flow is normally negative in the fourth quarter, reflecting the seasonally low result and build-up of

inventories for the seasonally stronger first quarter.

FINANCIAL POSITION

Group equity as of December 31, 2013, excluding non-controlling interests, amounted to SEK 11,372m

(10,987), corresponding to SEK 19.9 (19.2) per share.

Net debt decreased to SEK 6,659m (8,271) as of December 31, 2013, of which liquid funds amounted to SEK 1,884m (1,573) and interest bearing debt amounted to SEK 7,290m (8,366), excluding pensions. The major currencies used for debt financing are SEK and USD. Net debt decreased by SEK -337m during the year as a result of changes in exchange rates.

The net debt/equity ratio improved to 0.58 (0.75) and the equity/assets ratio to 42.6% (39.4).

In connection with the amendment of IAS 19 “Employee benefits” which is shown on pages 13 and 14, Husqvarna Group has reclassified the net defined pension liability to interest-bearing financial liability and included the liabilities in the calculation of net debt.

On December 31, 2013, long-term loans including financial leases amounted to SEK 6,408m (6,611) and short-term loans including financial leases to SEK 643m (1,470). Long-term loans consist of SEK 4,943m (4,075) in issued bonds, and bank loans and financial leases of SEK 1,465m (2,536). The bonds and bank loans mature in 2014 and onwards. The Group also has an unutilized SEK 6 bn syndicated revolving credit facility, with maturity in 2016.

PERFORMANCE BY BUSINESS AREA

EUROPE & ASIA/PACIFIC

Q4

Net sales for Europe & Asia/Pacific increased by 5% in the fourth quarter 2013.  Adjusted for exchange rate effects, net sales increased by 8%. For the full year, net sales declined by -3%.  Adjusted for exchange rate effects, net sales for the full year increased by 1%.

Demand was weak at the beginning of the year, and the selling season started later than usual due to a late start of spring. Demand gradually improved as favorable weather lead to a prolonged selling season in Europe, although the preseason demand for snow products was soft late in the year.

In terms of product categories, handheld products increased while snow thrower sales declined in the fourth quarter. Over the full year, electric products including robotic lawn mowers, showed the highest growth rate.

Operating income for the fourth quarter amounted to SEK -136m (-155) and the operating margin amounted to -5.8% (-6.8), excluding items affecting comparability of SEK -187m in the fourth quarter 2012. For the full year, operating income amounted to SEK 1,514m (1,947) and the operating margin amounted to 10.1% (12.7), excluding the items affecting comparability of SEK -187m.

Excluding currency impact and items affecting comparability, the improved operating income in the fourth quarter was mainly attributable to the higher sales volume and a more favorable mix, which partly was offset by higher costs for selling and branding. For the full year, operating income was positively impacted by the higher sales volume and lower material costs, while mainly under-absorption in factories due to inventory reductions affected negatively.

Changes in exchange rates had a negative year-on-year effect of SEK -17m on operating income for the fourth

quarter and SEK -328m for the full year 2013.

AMERICAS

Q4

Net sales for Americas increased by 5% in the fourth quarter 2013. Adjusted for exchange rate effects, net sales increased by 8%. For the full year, net sales declined by -1%. Adjusted for exchange rate effects, net sales for the full year increased by 3%.

Total market demand in North America increased over the full year, supported by an improving U.S. economy.

Strong demand driven by favorable weather in the second half of the year compensated for a weaker first half.

U.S., Canada and Brazil contributed evenly to the 8% currency adjusted sales increase in the fourth quarter.  Over the full year, Canada and Brazil had the most favorable development. Dealer sales represented 36% of Americas‟ sales in 2013, up from 33% in 2012.

Operating income for the fourth quarter improved to SEK -157m (-197) and the corresponding margin amounted to -9.5% (-12.5), excluding items affecting comparability of SEK -36m in the fourth quarter 2012. The improved operating income, excluding currency impact and the items affecting comparability, was mainly a result of lower material costs and savings from staff reductions.

For the full year, operating income rose to SEK 4m (-124) and the operating margin amounted to 0.0% (-1.0), excluding items affecting comparability of SEK -36m. The improved operating income was primarily attributable to improved pricing, lower material costs and increased productivity.

Changes in exchange rates had a negative year-on-year effect of SEK -1m on operating income for the fourth

quarter and a positive impact of SEK 16m for the full year.

CONSTRUCTION

Net sales for Construction increased by 8% in the fourth quarter 2013. Adjusted for exchange rate effects, the increase in sales was 10%. For the full year, net sales increased by 2%. Adjusted for exchange rate effects, net sales for the full year increased by 6%.

The positive demand trend in North America continued, although somewhat slower than earlier in the year.

Demand for construction products in Europe showed a mixed picture, but was over-all strengthened in the second half of the year. In Brazil demand continued to be strong as a result of infrastructure investments.

All regions showed higher sales in the fourth quarter, with the strongest development in rest of the world, in particular Brazil. Also for the full year, sales were up in all regions. The U.S. and Brazil were the top performing markets.

Operating income for the fourth quarter amounted to SEK 45m (45) and the operating margin amounted to 6.5% (6.9), excluding items affecting comparability of SEK -25m in the fourth quarter 2012. Operating income for the full year amounted to SEK 277m (258) and the operating margin amounted to 9.2% (8.7), excluding the items affecting comparability of SEK -25m in 2012.

Operating income in the fourth quarter was positively impacted by the higher sales volume, which was offset mainly by unfavorable mix and negative impact from changes in exchange rates. For the full year, operating income was positively impacted by the higher sales volume and mix, while changes in exchange rates and lower factory utilization levels impacted adversely.

Changes in exchange rates had a negative year-on-year effect of SEK -15m on operating income for the fourth

quarter and SEK -36m for the full year.

MANAGEMENT CHANGE IN ASIA/PACIFIC

Pavel Hajman has been appointed Executive Vice President, Head of business unit Asia/Pacific and will become member of Husqvarna Group Management. Pavel replaces Nicolas Lanus who left the Group December 31, 2013. Brian Belanger, VP Legal Affairs Asia/Pacific, will be acting on the position until Pavel Hajman starts, latest June 1, 2014.

STAFF REDUCTION MEASURES

In November 2012, Husqvarna Group announced measures to improve the Group‟s cost structure. The measures include layoffs of in total approximately 600 employees in several countries, whereof almost half in Sweden. The measures aim to improve efficiency, reduce the fixed cost base and further increase flexibility. Total costs for implementing these measures were SEK –256m, which were charged to the operating income for the fourth quarter of 2012.

Cost savings of SEK 174m were achieved in 2013 as a result of the measures. The measures will reach full effect of approximately SEK 220m in annual cost savings during 2014.

PARENT COMPANY

Net sales for 2013 for the Parent Company, Husqvarna AB, amounted to SEK 10,442m (10,564), of which SEK 8,032 (8,172) referred to sales to Group companies and SEK 2,410m (2,392) to external customers.

Income after financial items amounted to SEK 1,112m (564). Income for the period was SEK 911m (908). Investments in tangible and intangible assets amounted to SEK 582m (1,517). Cash and cash equivalents amounted to SEK 89m (91) at the end of the quarter. Undistributed earnings in the Parent Company amounted to SEK 17,461m (17,384).

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.

In October 2013, 847,885 A-shares were converted to B-shares at the request of shareholders. In January 2014, another 3,110,239 A-shares were converted to B-shares at the request of shareholders. The total number of votes thereafter amounts to 168,769,643.9.

The total number of registered shares in the company at December 31, 2013 amounted to 576,343,778 shares of which 126,593,868 were A-shares and 449,749,910 were B-shares.

ANNUAL GENERAL MEETING 2014

The Annual General Meeting (AGM) of Husqvarna AB (publ) will be held on April 10, 2014, at the Elmia Congress Center, the Hammarskjöld Hall, Elmiavägen 15 in Jönköping, Sweden.

Shareholders who wish to have matters dealt with by the AGM should submit their proposals to the Board by email to board@husqvarnagroup.com, or by post to Husqvarna AB, General Counsel, Box 7454, SE-103 92 Stockholm. Proposals must be received by the company no later than February 20, 2014.

Proposals to the Annual General Meeting in 2014

The notification to the AGM 2014 will be available on the Group‟s website www.husqvarnagroup.com/agm as of March 7, 2014. Then full proposal to the AGM will be published on the Group's website no later than March 20, 2014.

Dividend

The Board of Directors proposes a dividend for 2013 of SEK 1.50 (1.50) per share, corresponding to a total dividend payment of SEK 859m (859) based on the number of outstanding shares at the end of 2013. Tuesday, April 15, 2014 is proposed as record date. The last day for trading in Husqvarna shares including the right to dividend for 2013 is April 10, 2014.

www.husqvarnagroup.com