Restored Auburn Nebraska Plant Creating a Buzz as It Hits Its Stride

AUBURN, Nebraska — September 10 -- For a company that trains its workers to “Work like the tortoise, not the hare,” local employees at Ariens Co. sure make quick work of manufacturing outdoor chore equipment.

In the time it takes to mow the lawn in front of the company’s plant in the middle of town, about five riding lawn mowers roll off the production line inside — or one every 675 seconds.

“That’s from sheet metal to a product you can ride out on,” said Cliff Barley, director of operations for Ariens’ Auburn facility.

The Brillion, Wisconsin-based company purchased the plant and business from Auburn Consolidated Industries, which failed in 2007, and has hit a stride in the last year. Employment and production have returned to historically high levels while Ariens has worked to entrench itself among the greater Auburn community.

The company has manufactured and donated equipment for two disc golf courses in Nemaha County. Once a week, one of the plant’s manufacturing leaders leads a welding class in Falls City in an effort that is equal parts workforce development and civic stewardship.

And in late August, company officials announced a $25,000 donation to complete development and construction of a Nature Explore Classroom near the courthouse square downtown.

Auburn Mayor Scott Kudrna said the plant has always been “a stalwart of the local economy,” employing more than 200 people at its peak — but locals in this town of about 3,400 people have needed some convincing that Ariens would continue the tradition of the 88-year-old business.

When Auburn Consolidated closed briefly after going out of business in October 2007, it had about 125 employees. Ariens purchased it from financial stakeholders within a month of the closure, but it has taken time to restore the plant to its former status.

“Auburn Consolidated originally employed many more people than Ariens did and there was a lot of apprehension because we were dealing with a company that no one knew of,” the mayor said. “Families’ lives were shaken up by the closing and selling of the company.”

Fast-forward seven years and local employees are once again building outdoor power equipment. The zero-turn mowers are among the largest products being assembled and shipped out by workers here, and they’re also the newest.

Ariens officials in September 2013 relocated the product line to the largest manufacturing plant in Nemaha County from the company’s home base in Wisconsin.

Since then, employment at the local plant has grown about 30 percent to roughly 200 employees. Total production, meanwhile, has increased by more than 75 percent.

Now, the plant’s buzz around town has attracted employees both young and old.

At an April hiring fair, Barley said he recognized at least two former Future Business Leaders of America members from Auburn High School, where the company also has been engaged with teachers to help revamp the district’s vocational curriculum.

Kevin Raymond, the district superintendent, said improving how the school’s instructors prepare students for jobs is critical. That’s why it has also engaged with officials from the Nebraska Public Power District’s Cooper Nuclear Station — Nemaha County’s largest employer ahead of Ariens — as well as Magnolia Metal Corp. in Auburn.

“In the past three or four years, we’ve tried to build those connections within our community,” Raymond said. “Coming back here and making an impact in Nemaha County is now an option (for students) where maybe it wasn’t before.”

That option has been exercised by people who didn’t grow up in Auburn, as well.

Andy Whaley, a 44-year-old meatpacking industry veteran, moved back to the community about a year ago and had been commuting to Council Bluffs for a job at Tyson Foods Inc.

A newspaper ad for Ariens’ hiring fair in April enticed him to see what community members had been buzzing about. He was eventually hired as the plant’s night shift manufacturing leader.

“I remember starting in the meat business years ago, and that pride in what you’re doing on the floor was there,” Whaley said. “Here, every single person on the floor has that pride and it’s a standard.”

That pride extends beyond the walls of the plant’s manufacturing facility, thanks in part to both the plant’s legacy and its renewed commitment to the greater Nemaha County community.

The funds for the Nature Explore Classroom — a program of the Nebraska City-based Arbor Day Foundation and Lincoln-based Dimensions Educational Research Foundation — helped finalize a project that was years in the making.

The company has participated in local parades, and Ariens-built disc golf equipment was used to establish courses both in Auburn and at nearby Peru State College.

Bob Engles, a local real estate broker who was mayor of Auburn from 2002-10, said that kind of civic engagement reflects Ariens’ own legacy of family ownership dating to 1933.

“The talk of the town in 2007 was that someone would buy (the plant) for next to nothing and sell the equipment on a piecemeal basis and just leave us with an empty building,” Engles said. “Because Ariens is family-owned, decisions were very quickly made and we saw from an economic development standpoint that they wanted the building and the equipment and to maintain all the jobs they could.”

Even though the equipment Ariens manufactures is seasonal by nature — other lines include snow throwers, leaf blowers and stump grinders — the company’s philosophy aims for it to be anything but. It’s in the middle of an effort to maintain a fairly static level of inventory to buoy employment levels at what Barley calls a “sweet spot” of about 200.

“We keep our production level with total demand throughout the year. That stabilizes our workforce,” Barley said. “We don’t want to be that company that brings people in and whacks them up seasonally.”

Cole Epley         www.omaha.com

The Toro Company Reports Record Second Quarter Results

• Company achieves record second quarter sales of $745 million, a 6 percent increase, driven by strong demand for professional segment products
• Quarterly net earnings increase 14 percent to a record $1.51 per share
• The Toro Company to celebrate the significant milestone of 100 years in business on July 10, 2014

 BLOOMINGTON, Minn.-- May 22, 2014-- The Toro Company today reported net earnings of $87.1 million, or $1.51 per share, on a net sales increase of 5.8 percent to $745 million for its fiscal 2014 second quarter ended May 2, 2014. In the comparable fiscal 2013 period, the company delivered net earnings of $78.4 million, or $1.32 per share, on net sales of $704.5 million.

“I’m proud of our team’s execution that delivered record sales and earnings for the quarter despite challenging spring weather conditions for the second straight year,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “Although retail sales of some residential products were hampered by the late spring, we experienced strong growth in our landscape maintenance business.

Contractors who benefited from the robust snow season last winter invested in more new turf equipment during the quarter, favoring our productivity-enhancing mowers. In addition, shipments of golf equipment and irrigation products increased due to channel demand for our innovative new product offerings, including the recently introduced INFINITY™ sprinklers.”

For the first six months, Toro reported net earnings of $113 million, or $1.95 per share, on a net sales increase of 3.6 percent to $1.191 billion. In the comparable fiscal 2013 period, the company posted net earnings of $109.8 million, or $1.85 per share, on net sales of $1.149 billion. Strong retail demand for snow products and landscape maintenance equipment, as well as contributions from its micro irrigation, construction and rental businesses, helped the company to surpass sales and earnings earned in the comparable fiscal 2013 period, which benefited from the Tier 4 diesel engine transition.

“As we approach our Centennial and look ahead to the end of our Destination 2014 journey, we remain encouraged about both our business and prospects for achieving our goals,” said Hoffman. “Our portfolio of innovative products has us well-positioned to drive retail sales and strengthen our market share.

We will keep a watchful eye on retail demand and field inventories across our businesses and make any necessary adjustments. In addition, we will benefit from increased pre-season snow thrower shipments, primarily in the fourth quarter, that are needed to replenish inventories diminished by strong customer demand last winter.

As we strive to achieve our operating earnings goal, we will continue to pursue productivity improvements to leverage expenses and expand margins. While focused on things within our control, we remain mindful that Mother Nature may not deliver favorable summer growing conditions again this year or economic conditions may change, either of which could create potential challenges for our businesses and customers.”

The company continues to expect 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 third quarter, the company expects net earnings per share to be about $0.82.

Segment Results

Professional

Professional segment net sales for the second quarter totaled $528.6 million, up 6.5 percent from the comparable fiscal 2013 period. Sales of landscape maintenance equipment increased on strong retail demand, including for our zero turn radius mowers.

Golf equipment and irrigation product sales were up due to channel optimism and demand for new product offerings, including the INFINITY™ sprinklers and Multi Pro® advanced spraying system. Global micro irrigation sales increased with continued demand for more efficient solutions for agriculture and construction and rental equipment sales grew on channel demand for Toro® branded products.

Slightly offsetting these increases were lower sales of professional products in international markets. For the first six months, professional segment net sales were $824 million, essentially flat with the comparable fiscal 2013 period. Sales benefited from strong retail demand for landscape maintenance equipment and increased demand for micro irrigation, construction and rental products, but were offset by sales in the first quarter of last fiscal year that benefited from the Tier 4 diesel engine transition and were not repeated this year.

Professional segment earnings for the second quarter totaled $122.4 million, up 9 percent from the comparable fiscal 2013 period. For the first six months, professional segment earnings were $169.8 million, down 1.8 percent from the comparable fiscal 2013 period.

Residential

Residential segment net sales for the second quarter totaled $210.4 million, up 4.5 percent from the comparable fiscal 2013 period. Sales increased due to stronger domestic retail demand for our residential zero turn mowing products, as customers continued to transition to this mowing platform.

International demand for walk power mowers, as well as domestic demand for electric blowers and trimmers, also benefited sales for the quarter. Offsetting these increases were lower shipments of domestic walk power mowers and decreased sales in Australia due to unfavorable currency exchange and weather conditions.

For the first six months, residential segment net sales were $357.9 million, up 11 percent from the comparable fiscal 2013 period. Sales for the period increased on strong retail demand for our snow products, primarily in the first quarter, due to significant snowfall across key North American markets, as well as increased channel and retail demand for residential zero turn mowing products and international demand for walk power mowers.

Residential segment earnings for the second quarter totaled $23.8 million, down 3.5 percent from the comparable fiscal 2013 period. For the first six months, residential segment earnings were $42 million, up 13.9 percent from the comparable fiscal 2013 period.

Operating Results

Gross margin for the second quarter was 35.5 percent, a decrease of 30 basis points compared to the same fiscal 2013 period, primarily due to higher commodity costs and unfavorable currency exchange rates, somewhat offset by realized pricing. For the first six months, gross margin was 35.9 percent, a decrease of 50 basis points, primarily due to higher commodity costs, segment mix and unfavorable currency exchange rates, somewhat offset by realized pricing.

Selling, general and administrative (SG&A) expense as a percent of sales for the second quarter was 17.9 percent, a decrease of 120 basis points compared to the same fiscal 2013 period. For the first six months, SG&A expense as a percent of sales was 21.5 percent, a decrease of 60 basis points. For both periods, the decrease primarily was due to lower administrative expense, including health care costs, somewhat offset by higher incentive expense.

Second quarter operating earnings as a percent of sales improved 90 basis points to 17.6 percent compared to the same fiscal 2013 period. For the first six months, operating earnings as a percentage of sales improved 10 basis points to 14.4 percent.

The effective tax rate for the second quarter was 32.6 percent, which is the same as the effective tax rate for the comparable fiscal 2013 period. For the first six months, the effective tax rate increased to 32.7 percent from 31.3 percent in the comparable fiscal 2013 period when the company benefited from the retroactive reinstatement of the Federal Research and Engineering Tax Credit in the first quarter.

Accounts receivable at the end of the second quarter totaled $313.5 million, up 1.9 percent from the same fiscal 2013 period. Net inventories were $302.5 million, down 2.4 percent from the same period last year. Trade payables were $236 million, up 15.8 percent compared to the same fiscal 2013 period, primarily due to recent component and commodity purchases in anticipation of product demand in the second half of our fiscal 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.

Lawn Mowers Cut Decibels For a Price

March 25 -- How much will Americans pay to avoid annoying their neighbors?

Briggs and Stratton Corp. hopes they will cough up roughly $40 to $50 extra for a quieter lawn mower. The Milwaukee-based company this spring is introducing a mower engine that it said is 64% less noisy than standard versions.

So far, this quieter engine is available only on two Craftsman mowers sold at Sears stores. Briggs, the world's largest maker of gasoline engines for outdoor power equipment, based on sales, said the new engines may be installed in other mower brands eventually.

Rival engine maker Kohler Co. said it also has made its motors quieter but declined to provide details. A Honda Motor Co. spokeswoman said she lacked the data needed to say whether that company's mowers had become less noisy in recent years.

Briggs said it has been able to reduce the racket mainly because it has found a way to slow the spinning of the blade without sacrificing cutting ability.

Mowers are noisy partly because much of the time they are running faster than necessary to cut the grass. Standard engines typically run at about 3,100 revolutions a minute when they are started, then slow as the blade hits resistance in slicing through grass, Briggs said. The rotation of the crankshaft varies from around 2,800 rpm when the blade is cutting thick or wet patches of grass to more than 3,000 rpm where the grass is less dense.

A fuel governor on the new Briggs engine increases the flow of gas to the engine when it runs into denser patches of grass, so the speed remains steadier at around 2,800 rpm, Briggs said, and the use of a flatter blade reduces noise further. The two Craftsman mowers offered by Sears with the quieter engine are priced at about $340 and $450.

Briggs's chief executive, Todd Teske, hopes to achieve further sound improvements by "tuning" mower mufflers to make the noise less harsh. Still, he conceded, "it's never going to sound like Bach."

It isn't clear that many people will pay a premium for less noise. Stihl Group, a Germany-based maker of power lawn equipment, introduced in 2008 a quieter leaf blower known as the BG 66 L. Baffles inside the blower smooth air flow to eliminate whistling noises. This model, also available in other parts of the world, typically retails in the U.S. for around $230, or roughly $60 more than a similar model that makes more noise. Sales of the lower-priced model remain much higher than those of the quieter one, Stihl said.

Malcolm Crocker, a soft-spoken acoustical engineer who directs the International Institute of Acoustics and Vibration at Auburn University, said he wears ear-protecting muffs when he mows. He likes the idea of a quieter mower but thinks some people may be wary.

"Humans tend to equate loudness with power," Dr. Crocker said, "so if you make it quieter people think it's not so powerful."

James R. Hagerty         http://online.wsj.com/  

Here Comes El Nino, Good News for U.S. Weather Woes

WASHINGTON – March 6 -- Relief may be on the way for a weather-weary United States with the predicted warming of the central Pacific Ocean brewing this year that will likely change weather worldwide. But it won't be for the better everywhere.

The warming, called an El Nino, is expected to lead to fewer Atlantic hurricanes and more rain next winter for drought-stricken California and southern states, and even a milder winter for the nation's frigid northern tier next year, meteorologists say.

While it could be good news to lessen the southwestern U.S. drought and shrink heating bills next winter in the far north, "worldwide it can be quite a different story," said North Carolina State University atmospheric sciences professor Ken Kunkel. "Some areas benefit. Some don't."

Globally, it can mean an even hotter year coming up and billions of dollars in losses for food crops.

The National Oceanic Atmospheric and Administration issued an official El Nino watch Thursday. An El Nino is a warming of the central Pacific once every few years, from a combination of wind and waves in the tropics. It shakes up climate around the world, changing rain and temperature patterns.

Mike Halpert, acting director of NOAA's Climate Prediction Center, says the El Nino warming should develop by this summer, but that there are no guarantees. Although early signs are appearing already a few hundred feet below the ocean surface, meteorologists say an El Nino started to brew in 2012 and then shut down suddenly and unexpectedly.

The flip side of El Nino is called a La Nina, which has a general cooling effect. It has been much more frequent than El Ninos lately, with five La Ninas and two small-to-moderate El Ninos in the past nine years. The last big El Nino was 1997-1998. Neither has appeared since mid-2012. El Ninos are usually strongest from December to April.

Kevin Trenberth, a senior scientist at the National Center for Atmospheric Research, who wasn't part of NOAA's forecast, agreed that an El Nino is brewing.

"This could be a substantial event and I think we're due," Trenberth said. "And I think it could have major consequences."

Halpert said it is too early to say how strong this El Nino will be. The last four have been weak or moderate and those have fewer effects on weather.

Scientific studies have tied El Ninos to farming and fishing problems and to upticks in insect-born disease, such as malaria. Commodity traders even track El Nino cycles. A study by Texas A&M University economics professor Bruce McCarl found the last big El Nino of 1997-1998 cost about $3 billion in agricultural damage.

Trenberth said this El Nino may even push the globe out of a decade-long slowdown in temperature increase, "so suddenly global warming kicks into a whole new level."

Kunkel said if this El Nino is a strong one, global temperatures, probably in 2015, could "be in near record breaking territory."

Halpert, however, says El Ninos can be beneficial, and that the one being forecast is "a perfect case."

After years of dryness and low reservoirs, an El Nino's wet weather would be welcome in places like California, Halpert said.

"If they get too much rain, I think they'd rather have that situation rather than another year of drought," Halpert said. "Sometimes you have to pick your poison."

Australia and South Africa should be dry while parts of South America become dry and parts become wet in an El Nino. Peru suffers the most, getting floods and poorer fishing.

The climate event got the name El Nino, meaning the boy in Spanish, when it was first noticed off the coast of Peru and Ecuador around Christmas time and was named after Christ child, according to Trenberth.

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   

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  

Ariens Buys 3 Direct Marketing Brands From W.W. Grainger

Calling it part of a strategy to offset some of the seasonality inherent in its business, Ariens Co. said Monday it is acquiring three direct marketing brands from W.W. Grainger Inc.

The brands are Gempler's, Ben Meadows and AW Direct. All three brands market outdoor-related products including landscape and horticulture equipment, gear for fighting wildfires and tow truck equipment.

The brands will become part of Brillion-based Ariens on Jan. 1. Terms of the agreement were not disclosed, but, "the dollars are fairly significant," said Dan Ariens, CEO of Ariens and the fourth generation of the family to lead the company. "It adds a big new revenue base to our business."

Grainger said in a statement that the three brands total had estimated revenue of $90 million in 2013.

The three brands will help smooth Arien's revenue, which is skewed heavily toward fall and winter when sales of its snow blowers spike.

"When we look at their revenues over quarters they are much more level," Ariens said.

Ariens will add 250 new employees total at an office in Madison and a distribution site in Janesville as a result of the transaction, putting its total employment at about 2,300.

The company has been seeking an acquisition as a means to diversify its portfolio of businesses, Ariens said.

"We've been looking for a couple of years to find something that fits like this," Ariens said.

Ariens operates in the outdoor power equipment manufacturing as well as distribution segments in consumer and professional markets. The company's brands include Sno-Thro snow blowers; Countax and Westwood lawn tractors; and Gravely and Parker commercial equipment for the landscape management, facilities maintenance and sports field sectors. Ariens' affiliates, Stens Corp., J Thomas and Ariens Pty Ltd. in Australia, supply replacement parts to the outdoor power equipment industry.

"As we grow the distribution side of the business, these companies represent strong niche segments that fit nicely with our current portfolio of outdoor brands," the company said in a statement.

The acquisition is "another way to talk to the same customer with a different set of products," Ariens said.

Ariens will be taking over leased space in Madison as well as leasing space in the Janesville distribution center from Grainger, said Ariens spokeswoman Ann Stilp, in an email.

Ariens will operate the acquired brands along with Stens and J. Thomas as part of a newly formed specialty brands group.

The location of the businesses Ariens is acquiring played a role in the agreement, Dan Ariens said.

"We want to invest in Wisconsin wherever we can," he added. "We see opportunity here."

Ariens was established in 1933.

W.W. Grainger Inc., is based in Lake Forest, Ill., and had 2012 sales of $9 billion. The company is a business-to-business distributor of products used to maintain, repair or operate facilities.

Joe Taschler       www.jsonline.com  

Deere Sells Interest in Landscape Business

October 28 -- Deere and Co. announced Monday that it has agreed to sell a majority interest in its landscapes business to the private equity investment firm of Clayton, Dubilier and Rice LLC.

In a news release, Deere said that it will receive approximately $300 million in cash and initially will retain a 40 percent equity interest in the new company. In its own news release, Clayton, Dubilier and Rice, or CD&R, said the carve-out transaction is valued at about $465 million.

John Deere Landscapes has been included in the Moline-based company's agriculture and turf segment.

"This partial sale allows Deere an opportunity to remain as part of a successful landscapes distribution business," James Field, president of Deere’s Worldwide Agriculture & Turf Division, said in the release. “At the same time, Deere will continue to increase its own strategic focus on the global growth businesses in agriculture and construction and the complementary businesses in turf and forestry."

With more than $1 billion in annual revenue, John Deere Landscapes is the largest North American distributor of landscaping products sold primarily to professional landscape contractors. It distributes wholesale irrigation, landscape lighting, nursery, and turf and maintenance supplies.

"CDandR's focus on growth and deep experience with businesses like ours make them an ideal partner," said David Werning, John Deere Landscapes president, who will retain his position. "Deere's ongoing equity ownership reflects its interest in remaining part of a successful landscapes distribution business."

David Wasserman, a partner with CD&R, said John Deere Landscapes is "managed by a talented executive team that we are very excited to has as partners." "The business has many attractive features, including scale, breadth of product offering and service excellence, all of which provide significant strategic and competitive advantages in supporting the requirements of the professional landscape contractor," he added.

Paul Pressler, a CDandR operating partner, will assume the role of chairman upon close of the transaction, which is expected in December.

"The new company should benefit from a recovery in residential and commercial construction activity as well as through the meaningful value creation opportunities available to drive the business forward," said Ken Giuriceo, a CDandR partner.

Deere formed the landscapes business in 2001 when it purchased and merged wholesalers McGinnis Farms Inc. and Richton International Corp. The business later expanded with the acquisitions of United Green Mark and LESCO, Inc., in 2005 and 2007, respectively. Today, John Deere Landscapes is one of the largest U.S. wholesale suppliers of turf and ornamental agronomics, irrigation, outdoor lighting, nursery and landscape materials.

John Deere Landscapes employs more than 2,000 people at about 400 locations in 41 states. 

Field said Deere recognized the investment firm's broad experience and successful record in distribution businesses and the firm’s longevity and experience in private equity.

Since its inception in 1978, CD&R has managed the investment of more than $18 billion in 56 U.S. and European businesses with an aggregate transaction value of more than $90 billion.

In an interview with the Quad-City Times, Deere spokesman Ken Golden said John Deere Landscapes employees "were told today there is no immediate impact on them. As in any business, future decisions could be made that will result in changes," he said.

The sale is unrelated to Deere's announcement last month that it is reviewing strategic options for the future of its John Deere Water business, which produces precision irrigation equipment for agriculture customers, Golden said.

Jennifer DeWitt              www.qctimes.com