Blount International Plans $17M Facility in Kansas City

July 22 -- Blount International Inc., an outdoor equipment manufacturer, will be the KCI Intermodal BusinessCentre’s first tenant, bringing a 350,000-square-foot distribution center that will create 89 jobs in Kansas City.

Blount, based in Portland, Ore., has begun construction on its new $17 million facility, which is due to open in January 2012, according to Clarion Partners and Trammell Crow Co.

The Class A distribution center will be built on 22 acres at KCI. Besides adding new jobs, the project will keep 230 current Blount employees in the region.

KCI Intermodal Business Centre is an 800-acre master-planned business park on the Kansas City International Airport campus. The total value of the development, when completed, is expected to top $216 million.

The state is providing an economic incentive package worth $1.24 million, to be redeemed during the next seven years if Blount meets certain requirements.

“Several years ago, the Aviation Department embarked on an ambitious plan to spur aviation- and non-aviation-related development at KCI Airport to attract greater numbers of well-paying jobs to the area,” Mark VanLoh, director of the Aviation Department, said in a release. “Securing Blount as the first tenant at KCI Intermodal BusinessCentre shows that the plan works and we can bring diverse jobs to the area.”

Missouri Gov. Jay Nixon said in a release that the state "will continue to fight every single day for every single job to keep our economy moving, and adding 89 solid manufacturing jobs to the local economy is a significant step forward."

Nixon attended an official groundbreaking for the project Friday morning — two days after the announcement that Missouri lawmakers would convene a special session to revamp economic development policies to better attract and retain businesses.

Blount manufactures and markets parts and equipment for the forestry, lawn and garden industries, as well as parts for chain saws. Blount sells its products in more than 100 countries.

Toro Introduces Lithium Ion-Powered All-Electric Greens Mower

July 23 -- After four years in development, Toro came up with an electric mower, gentle enough for golf courses' defining greens.

It's been 90 years since the Toro Co. pioneered motorized grass cutting for golf courses by simply hitching five mowers to a tractor. It was a crude stab at innovation that eliminated an even cruder problem -- cleaning up after the horses that until then had pulled mowers over fairways.

Since then, gasoline -- not hay -- has been the primary power source for golf course maintenance. Now the Bloomington-based company has taken a step to change that, with a new lithium ion-powered, all-electric mower that's a first in the turf care industry. The mower is specifically targeted for greens, whose tender grass is demanding enough to dictate precise care.

It's the latest of several eco-friendly products Toro has launched in recent years, including hybrid mowers and water-saving sprinklers and irrigation systems. Many are aimed at the golf course market, which last year accounted for more than one quarter of Toro's $1.69 billion in sales, but others are geared for landscape contractors, farmers and homeowners.

Toro began exploring battery-powered mowers several years ago because it knew the golf industry was interested in machines that would not consume gas or emit carbon dioxide, said Helmut Ullrich, senior marketing manager for greens mowers. Another benefit is that they are quieter, so they can be operated for more hours during the day without disturbing neighbors, he said.

The company initially considered developing a mower powered by lead acid batteries. Jacobsen, a Charlotte, N.C.-based unit of Textron Inc., already has a lead acid battery model on the market.

"We couldn't come up with a mower with a lead acid battery that met customers' expectations," Ullrich said. The main problem was that the battery would only last for mowing two or three greens and then had to be recharged, a process that takes about eight hours. Golf course superintendents had told Toro they wanted a machine whose power would last for at least six greens.

Ullrich said Toro also thought lead acid batteries were too heavy to use on the greens' tender grass. They also need to be replaced every one to two years, while the lithium ion batteries on Toro's new mower are guaranteed to last five years.

It took about four years for Toro to develop the new mower, with batteries supplied by Enerdel, an Indianapolis-based manufacturer of commercial-grade lithium ion batteries.

Ullrich said the principal challenges included meeting the six-greens-per-charge requirement, a goal Toro finally exceeded. The company says its new machine can mow up to 45,000 square feet, or nine average-sized greens, on a single charge. Another challenge was managing the battery's power flow to ensure precise and even cutting. "Golf course superintendents can lose their jobs over greens," Ullrich said.

Rick Fredericksen, course superintendent at Woodhill Country Club In Wayzata, agrees that greens are a top priority. "You're really judged on them the most," he said.

Fredericksen said he began monitoring Toro's development of the battery-powered mower a few years ago because of Woodhill's focus on environmentally conscious practices. The course is one of 26 in Minnesota certified by Audubon International, a New York-based environmental education organization whose program sets standards on environmental planning, habitat management, chemical use and water conservation.

Fredericksen tried out one of the new mowers last month at a demonstration Toro arranged at Interlachen Country Club in Edina. "I was all on board with it," he said. Woodhill plans to buy three and will store them in a new solar-paneled shed along with two other hybrid fairway mowers it also is purchasing from Toro.

Ullrich said the new mower is expected to cost about $14,000 and will be produced starting in October at the company's Tomah, Wis., plant. The price compares with about $10,000 for a conventional gas-powered mower, but Ullich said Toro estimates the new machine should pay for itself within five years. In addition to not consuming gas, there are savings on maintenance, such as oil and air filter changes.

Ullrich said Toro will look for ways to expand lithium ion technology to other products. For now, he calls the breakthrough "a game changer" for Toro's golf business.

Even so, he won't experience the benefits firsthand. The 30-year Toro veteran chooses not to play the game, adding "I don't need those kinds of frustrations in my spare time."

www.startribune.com   

Carlisle Companies Reports for Quarter Ending June 30, 2011 - Excerpts

CHARLOTTE, N.C. -- Jul 26 -- Carlisle Companies Incorporated reported net sales from continuing operations of $870.8 million for the quarter ended June 30, 2011, a 27% increase from net sales of $687.6 million in the second quarter of 2010. The Company's organic sales increase of 14% from the prior year period was primarily driven by strong sales growth in the Company's off-highway brake and friction, commercial re-roofing and aerospace businesses. The Carlisle Brake & Friction ("CBF") segment's acquisition of Hawk contributed $83.5 million in sales, or 12%, in the second quarter of 2011. The impact of foreign currency exchange rates on net sales was an increase of less than 1% in the second quarter of 2011.

Income from continuing operations increased 43% to $55.3 million, or $0.87 per diluted share, in the second quarter 2011 compared with $38.8 million, or $0.62 per diluted share, in the second quarter of 2010. The increase in income was due to the earnings contribution from the Hawk acquisition, a lower effective tax rate, organic sales growth and efficiencies gained through the Carlisle Operating System. Partially offsetting this increase were higher raw material costs experienced in all segments in the second quarter of 2011 as compared to the second quarter of 2010.

Comment

David A. Roberts, Chairman, President and Chief Executive Officer, said, "Our results demonstrated continued strong sales and overall earnings growth. Carlisle Brake & Friction achieved another record sales quarter. The performance of CBF's Hawk operation acquired in December 2010 was outstanding, with sales contribution of $83.5 million and EBIT of $15.6 million. Organic sales growth in the Brake & Friction segment was 33% on strong demand for global agriculture, construction and mining applications. Our Construction Materials and Interconnect Technologies segments also had impressive sales results with growth of 19% and 15%, respectively, during the second quarter 2011."

Roberts continued, "During the second quarter 2011, our EBIT (Earnings before interest and income taxes) margin grew from 9.3% during the second quarter 2010 to 9.8%. This improvement was largely attributable to Brake & Friction and Interconnect Technologies, with both segments achieving EBIT margins above 16%. EBIT increased by 6% in the Construction Materials segment. Construction Materials was able to achieve EBIT margin of 13.2% despite a significant increase in raw material costs. While EBIT in the Transportation Products segment increased by 8%, margin was negatively impacted by production inefficiencies related to the start-up of the Jackson, TN, tire facility. All of our businesses have responded to significant raw material price increases this year by enacting pricing actions and pursuing savings through the Carlisle Operating System. However, increased raw material costs will continue to be a challenge through the remainder of 2011."

Roberts added, "We continue to actively pursue acquisition opportunities that are consistent with our long-term goals of achieving 30% global sales and 15% operating margins. We are excited about our recently announced agreement to acquire PDT in Germany, a leading manufacturer serving the growing single-ply roofing market in Europe. This transaction should close in the third quarter."

Roberts concluded by stating, "For the full year 2011, we are planning for sales growth in the mid-twenty percent range. Despite increasing raw material expense, we expect that EBIT margins will continue to trend upwards versus last year. Our efforts to improve cash flow year-to-date have been impacted by significant sales demand, particularly in our overseas markets. However, we remain committed to improving our cash flow and increasing inventory turns through the Carlisle Operating System. Our balance sheet remains strong and we are well-positioned to continue to pursue growth opportunities both organically and through bolt-on acquisitions."

Segment Results (Excerpts)

Carlisle Construction Materials ("CCM"): Second quarter 2011 net sales of $412.0 million increased by 19% from net sales of $345.8 million in 2010. EBIT increased 6% to $54.2 million from $51.3 million for the same period in the prior year. The increase in sales reflected continued strong demand for the Company's reroofing applications as well as expansion of global sales initiatives. EBIT margin decreased from 14.8% in the second quarter 2010 to 13.2% for the second quarter 2011 due to higher raw material costs. The Company implemented price increases during the second quarter and further price increases are planned through the third quarter.

Carlisle Transportation Products ("CTP"): Second quarter 2011 net sales of $204.3 million increased by 6.4% compared to net sales of $192.0 million over the prior year period. The increase in sales primarily reflected higher selling prices offset by lower volume within the outdoor power equipment market. EBIT increased 8% to $6.8 million from $6.3 million for the same period in 2010. EBIT margin of 3.3% in the second quarter of 2011 was hampered by production inefficiencies from the ramp up of manufacturing at the Jackson, TN, tire plant. While higher selling prices at CTP offset the cost of raw material increases during the second quarter of 2011, higher raw material costs that are capitalized into inventory may negatively impact margin in future quarters.

GE Capital to be Exclusive Provider of Briggs Power Products Inventory Financing

HOFFMAN ESTATES, Ill., Jul 20 -- GE Capital, Commercial Distribution Finance (CDF) today announced that it will become the exclusive provider of floorplan financing for Briggs and Stratton Power Products Group LLC (BSPPG) in the U.S. and Canada.

Headquartered in Wauwatosa, WI, BSPPG offers residential and outdoor power equipment under the Simplicity, Snapper, Massey Ferguson, Snapper Pro and Ferris brand names. Parent company Briggs and Stratton Corp. also manufactures and markets GE-branded standby generators under a separate licensing agreement.

"Floorplan financing is an important element of a successful dealer business model, and GE Capital provides a long-term solution for lawn and garden dealers to stock and market outdoor power equipment," said Harold Redman, senior vice president of Briggs & Stratton and president of Briggs & Stratton Power Products Group.

"We are very pleased to have been chosen by BSPPG, and we look forward to providing exceptional service and innovative financing to meet the needs of their dealers," said Marvin Solomon, managing director of CDF's strategic industries group. "Our team is eager to work together with our new client to develop financing programs that are right for their dealer customers."

Husqvarna Results Still Hurting From Orangeburg Production Problems

July 20 --  Outdoor power equipment maker Husqvarna (Stockholm) reported net sales for the second quarter of 2011 were SEK 10,179 million (approx. US$1576 million), compared to SEK 11,457 million in the second quarter of 2010 – although adjusted for currency exchange rates, sales decreased by SEK 64 million or about 1%.

Sales prices increased slightly. Europe and Asia/Pacific accounted for an adjusted sales increase of approximately 4% or SEK 246 million. The Americas’ adjusted sales decreased by approximately 9% or by SEK 375 million. Construction’s adjusted sales increased by approximately 10% or SEK 65 million.

The group reported a negative operating income of approximately SEK 170 million, in part due to changes in exchange rates.

Acting CEO and President Hans Linnarson said that North American industry demand decreased, which wasn't helped by continuing "supply chain challenges" at its factory in Orangeburg, SC, both of which hurt sales.

Linnarson said the European market started the second quarter strongly but then slowed near the end of the quarter.

Orangeburg problems also hurt North American results in the first quarter of 2011, when the company said the plant was dealing with an "increase in material complexity" as it assimilated the production from the recently closed Beatrice, NE plant and accommodate several number of new product launches.

"Production disturbances continued to hamper the output from Orangeburg as well as resulting in higher costs," Linnarson said. Measures have been taken to reduce the costs resulting from these problems. In 1Q the costs were about SEK 150 million, in 2Q the cost was SEK 180 million.

"Our highest priority going forward is to secure deliveries to our customers for the 2012 season in a timely manner. Further measures will be taken within the Orangeburg factory which is expected to result in SEK 100 – 150 million higher costs during the remainder of 2011," Linnarson said. "We are also planning to increase our pre-season production. As production capacity and flexibility to guarantee the highest delivery performance will be prioritized, we will also review the pace of our ongoing restructuring projects."

Linnarson said that savings from consolidating manufacturing in Orangeburg will be delayed.

"The Group's operating income declined in the second quarter. Higher selling prices and a favorable mix were not able to offset negative currency effects, costs related to the production disturbances, higher input costs and marketing expenses."

Sales for the first half of 2011 were SEK 18,953 million, down from SEK 20,539 million in the first half of 2010.

OPEESA Member Stan Crader Donates Book Profits to Tornado Recovery

Most of you remember The Bridge, Stan’s first book published in 2007, and his second book, Paperboy, published in 2010.  If you haven’t purchased both these books or read borrowed copies, you’re missing a terrific summer vacation read.  Plus Stan has donated all his profits to charities over the years. 

Now he is directing his profits for the balance of 2011 to assist the tornado recovery effort in Joplin, MO.  Stan’s business, Crader Distributing Company is located in Marble Hill, MO, so this relief effort is very personal and important to Stan and all his employees.  And you and I know that it could have very easily been our own businesses and homes destroyed by a tornado.

So head to Amazon.com and order The Bridge and Paperboy, two books you and your family will thoroughly enjoy, and assist a very important relief effort in Joplin, MO, devastated by a huge tornado on May 22, 2011.