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   

The Toro Company Kicks Off Centennial Year Celebration

BLOOMINGTON, Minn., Jan 27 -- On July 10, 2014, The Toro Company  will celebrate a rare business milestone – achieving 100 years in business. According to Michael J. Hoffman, Toro’s chairman and chief executive officer, Toro attributes its remarkable longevity to, “the character of our people and channel partners, and their relentless commitment to serving our customers and building market leadership through innovation.”

Toro’s yearlong celebration of its 100th anniversary provides an opportunity not only to look back on the company’s notable achievements, but also to recognize the ingenuity and dedication of its employees – and to thank its channel partners and end-user customers around the world for their loyalty and trust in The Toro Company.

As Hoffman put it, “These same values that have been core throughout our first 100 years form the foundation for continued success into our next century.”

A Legacy of Excellence From the start, Toro built its legacy by understanding the needs of its customers and developing products and services to help them succeed. This commitment to innovation is reflected in the more than 1,500 patents its employees around the world have earned over the years.

In addition, Toro has developed strong networks of professional distributor, dealer and retailer partners across industries in more than 90 countries to provide local, expert, professional customer service. For example, in 1922, Toro created the golf industry’s first national distributor network. And, in 1934 as the business grew, Toro encouraged its distributors to establish dealers in areas the distributors’ staff could not effectively cover, providing local customer service that proved to be a competitive advantage.

This commitment to customer service has been instrumental in Toro’s development of long-term relationships with golf courses, homeowners, professional contractors, agricultural growers, construction and rental companies, government and educational institutions – in addition to many premier sporting events, venues and historic sites around the world.

People Make the Difference For decades, customers have counted on Toro because of the company’s reputation for reliability, quality and standing behind its products. When Toro celebrated its 25th anniversary in 1939, the company’s first president and co-founder John Samuel Clapper noted that the loyal service of Toro’s employees and distributors was the customers’ guarantee of a high-quality product. As Hoffman summarized, “What was true 75 years ago when Mr. Clapper made his statement about Toro remains true today – the loyal service of our employees and channel partners is critical to our company’s success.”

Explore Toro Innovations From developing new technologies to expanding into new markets, a timeline of the company’s many innovations and achievements is available atwww.toro.com/100 

People are invited to visit www.toro.com/100 to learn more about other Toro industry firsts and contribute their own Toro stories.

They can also share their Toro memories on Twitter at www.twitter.com/thetorocompany using the hashtag #Toro100 , and on Facebook at www.facebook.com/toro.company .

About The Toro Company 

The Toro Company 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.toro.com .

Dixie Chopper Assets Acquired by Jacobsen, a Textron Company

Thursday, February 6 -- Jacobsen, a Textron Inc. company, has acquired the assets of Dixie Chopper, a Putnam County-based manufacturer of zero-turn-radius mowers for the commercial and residential markets, it was announced Thursday.

"The addition of Dixie Chopper expands our reach into the consumer and commercial sectors, including municipalities, with a full range of zero-turn mowers known for their speed, quality and performance," Jacobsen President David Withers said.

"It's really a win-win for both companies," he added, "and we look forward to building customer relationships together with Dixie Chopper."

Known as "the World's Fastest Lawn Mower," Dixie Chopper mowers are capable of mowing up to 6.6 acres per hour. The company manufactures 11 models of zero-turn mowers, from the residential Zee 2 with 21-hp Kawasaki engine and 42-inch deck to the industrial category XCaliber Twin with two 27-hp Generac engines and 74-inch deck.

"We are excited to join the Jacobsen and Textron family of brands," Dixie Chopper founder and Chairman Art Evans said Thursday.

"Our line of zero-turn radius mowers fit perfectly into the Jacobsen portfolio of products," Evans added, "and we look forward to working together to serve more customers.

"The joining of Dixie Chopper and Jacobsen offers an opportunity for Dixie Chopper to reach a global market and expand brand awareness in the process."

Jacobsen will continue to operate Dixie Chopper out of the company's Indiana facilities in Fillmore and Greencastle, and the existing Dixie Chopper management team will join Jacobsen.

With the addition of Dixie Chopper, Jacobsen offers a complete product line of turf maintenance equipment, including zero-turn mowers, small and large area reel mowers, trim mowers, wide-area rotary mowers, aerators, sprayers, utility vehicles and renovation equipment.

Founded in 1980, Dixie Chopper revolutionized the entire lawn and garden industry by providing the first zero-turn lawn mowers built specifically for commercial mowing contractors.

Known as "the World's Fastest Lawn Mower," Dixie Chopper mowers are about much more than being fast. The company prides itself on providing quality and reliability in addition to speed. To learn more about Dixie Chopper and view the complete lineup of zero-turn lawn mowers, visit the company's website atwww.dixiechopper.com.

With more than 90 years of experience in the turf maintenance industry, Jacobsen equipment is used on some of the finest formal turf areas across the United States and the world, through an extensive distribution network and the international Ransomes brand. Additional information about the company can be found at www.jacobsen.com.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. For more information visit: www.textron.com.

www.bannergraphic.com  

Servantage Dixie Sales Celebrates "100 Years Strong in 2014

Around the first of March, 1914, L. H. (Jack) Starmer and his father-in-law, F. E. (Frank) Snyder, recently arrived from Ohio, bought Dixie Sales Company from businessman Joseph Leahy, and reopened for business and under new ownership on Monday, March 2, 1914.   March 1914 business for Dixie Sales Company totaled $235.70.  Services offered included repairing or patching tires and tubes, installing valves in tubes or a tube in a tire, selling new tires, repairing baby carriage tires or their tubes, rubber ice bags and water bottles.

Over the next 37 years, Dixie Sales Company was located in nine different downtown Greensboro locations and the company stayed focused on providing outstanding drive-in automotive service, selling and repairing tires, and selling automotive parts to car dealers and independent auto repair shops.  The company continued to be owned and managed by the Snyder and Starmer families.

An August 7, 1924 newspaper ad mentioned customer service attributes that remain the foundation of the company today:  “As we apprehend it, a great lot of flag-waving is done, in the name of service, about things which are merely the ordinary routine of business and which any buyer can reasonably expect to receive.  What might properly be indicated by the word service would consist mostly of a desire and honest effort to be helpful, and a willingness to use all acquired knowledge, skill, facilities for the benefit of the customer.  While we do not claim to give a perfect service, we do make an honest effort in that direction to the best of our ability.”

The years following the 1929 Great Depression were times of struggle for the business, but it persevered by continuing to focus on providing exceptional personal customer service, and by the late 1930’s business once again was strong and growing.

Ernest Starmer’s (son of founder Jack Starmer) two sons joined the business, Jim in 1969 and Richard in 1973, and soon a decision was made to shift the focus of parts sales away from automotive parts to outdoor power equipment and air-cooled engine repair parts and accessories. 

In the early and mid-1980’s, the lawn and garden equipment parts business grew rapidly and became the dominant focus of the company.  In 1988, the company moved its lawn and garden parts business to a new 40,000 sq. ft. distribution center in Brown’s Summit, a few miles northeast of Greensboro.  By continuing to provide industry-leading exceptional customer service, the company continued its extremely rapid growth, and within a few years the Brown’s Summit facility more than doubled in size to over 120,000 square feet.

Servantage® Dixie Sales’

Brown’s Summit, NC Headquarters and Distribution Center

In January of 1993, the automotive parts and service business, still located at 327-29 Battleground Avenue in downtown Greensboro, was sold to allow management to focus on the continuing rapid growth of its lawn and garden parts and accessory business.

From the mid-1980’s to the late 1990’s, Dixie Sales Company was averaging over 20% growth a year and became one of the largest and best outdoor power equipment parts and accessories distributors in the United States. 

In August 2001, Jim and Richard Starmer sold the business to Barrett Corporation, a private family-owned and diversified business headquartered in Woodstock, New Brunswick, Canada.  Barrett Corporation’s roots were in distribution, auto service centers, heavy equipment rental, and in satellite TV and satellite Internet solutions for Canadian consumers.

Over the next eight years, Dixie Sales Company was owned by several different British public companies, until July 31, 2009, when Dixie Sales Company’s senior management including Jim Starmer, along with several independent investors, bought the company back, making it once again privately-held.

The continued addition of comprehensive and innovative customer-support services as well as an expanding customer base and growing sales, led to an addition to the company name in January, 2012; the new name being Servantage^® Dixie Sales.  The addition of Servantage^® better reflects the company’s unique position as a trusted partner and reliable resource for manufacturers and national multiple-store retailers.  Each day Servantage® Dixie Sales provides our customers with responsive and dependable service, in reality, giving them a service advantage over their competition, thus Servantage^® Dixie Sales.  The company then leverages that service advantage to create a seamless overall brand experience for the broad range of customers we support across the continent.

In May 2013, Servantage^® Dixie Sales acquired the Outdoor Division of Henry W. O’Neill & Associates now operating in Victor, NY as Servantage^® O’Neill Outdoor.  The new division will serve 14 northeastern states, allowing us to further develop and expand the offerings provided by Servantage^® Dixie Sales as well as taking advantage of new opportunities in the northeast.

In the spring of 2014, Servantage® Dixie Sales will open a new distribution center in Jacksonville, FL, providing a service advantage for their broad range of customers in Florida, Georgia and Alabama and a seamless overall brand experience for service centers, retailers, and consumers across the eastern United States.

In 2014, Servantage® Dixie Sales will celebrate the 100^th anniversary of Dixie Sales Company with activities at all locations being planned for our manufacturer and retailer customers, fellow industry distributors, our service center customers, and our current and former employees.  Very few companies ever reach 100 years in business, so 2014 will be an exciting and fun-filled year for all, as we celebrate an amazing 100 years of greatness with lots of birthday parties.

ABOUT SERVANTAGE® DIXIE SALES

Servantage® Dixie Sales is an independent, full-service, value-added distributor that enhances end-user experiences with consumer products.

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, Jacksonville, FL and Toronto, Canada as well as two contact centers in the US and Canada providing customer support in English, French and Spanish.

For more information about Servantage® Dixie Sales, visit www.servantage.net