CPSC, STIHL Recall Trimmers and Brushcutters

Washington, D.C. -- December 16, 2010. The following product safety recall was voluntarily conducted by the firm in cooperation with the CPSC. Consumers should stop using the product immediately unless otherwise instructed.

It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: STIHL FS 310 Bike Handle Trimmer/Brushcutter

Units: About 1,000

Manufacturer: STIHL Incorporated, of Virginia Beach, Va.

Hazard: Vibration from the ignition module may cause the trimmer head to loosen and detach from the mounting, posing an injury hazard.

Incidents/Injuries: The company received three reports of incidents and no reports of injuries.

Description: The recalled bike handle trimmer/brushcutter has “STIHL” printed on the engine head. The model number FS 310 is located in two places, on the shaft and on the flywheel housing below the starter grip. This recall includes all units with serial numbers ranging from 27961 1030 through 27961 1119 and 27984 3607 through 27984 4556, which can be found on an adhesive label affixed to the bottom of the fuel tank and etched into the metal frame on the bottom of the engine.

Sold at: Authorized STIHL dealers nationwide from June 2009 to April 2010 for about $550.

Manufactured in: United States

Remedy: STIHL informed purchasers for whom they had addresses directly by letter after April 15, 2010. Consumers should stop using this trimmer/brushcutter immediately and take it to an authorized STIHL dealer for a new ignition module, which will be installed at no cost to the consumer.

Consumer Contact: For more information, contact STIHL between 8 a.m. and 8 p.m. ET Monday through Friday at (800) 610-6677 or visit STIHL’s website at www.stihlusa.com

Green Media Publications Announces 2010 Selections for Most Influential People in the Green Industry

(Oct. 29, 2010) -- Green Media, a division of M2MEDIA360 -- publisher of Arbor Age, Landscape and Irrigation, Outdoor Power Equipment and SportsTurf -- is proud to announce the 2010 selections for “Most Influential People in the Green Industry.”

Green Media’s “Most Influential People in the Green Industry” were nominated by their peers for their ongoing contributions to the green industry (submissions were made from May 20, 2010 through July, 16, 2010). Nominations were reviewed by Green Media’s in-house panel, and the 2010 selections for “Most Influential People” were chosen from throughout the green industry.

The professionals selected for this honor exemplify commitment to the green industry, and have exhibited a widespread influence on their peers. Green Media congratulates all of those chosen for this year’s list of “Most Influential People in the Green Industry.” They are as follows:

• Bob Curry, owner/CEO, Covermaster, Inc.
• Arthur L. Evans, founder and chairman of the board, Dixie Chopper
• Den Gardner, executive director, Turf and Ornamental Communicator's Association and executive director of Project Evergreen
• Dale Getz, sales manager, Sports Fields and Grounds, The Toro Company
• John Gibson, president, Swingle Lawn, Tree & Landscape
• Judson Griggs, director of garden development, Lambert Landscape Company
• Karen McKie, co-owner, Green Oak Nursery
• Ed Nelson, president and CEO, Rotary Corporation
• Scott Prophett, president, North American Training Solutions, Inc.
• Frank Rossi, Ph.D., turfgrass scientist, Cornell University
• Dane Scag, former owner, Scag Power Equipment, Inc. and Great Dane Power Equipment, Inc. (retired)
• Doug Schattinger, president, Pioneer Athletics
• Tobe Sherrill, CEO, SherrillTree
• Harold Spiegel, president, Preservation Tree Services, Inc.
• Jim Starmer, executive vice president, Dixie Sales Company, Inc.
• Mark Stennes, plant pathologist, S and S Tree Specialists, Inc.
• Mickey Strauss, president, MSM Landscape Services, Inc.
• James Urban, author, “Up By Roots”
• Fred Whyte, president, Stihl Inc., and chairman, Outdoor Power Equipment Institute
• Dr. Fred Yelverton, extension weed specialist, North Carolina State University

The “Most Influential People in the Green Industry,” will be profiled in the January 2010 issues of Arbor Age, Landscape and Irrigation, Outdoor Power Equipment and SportsTurf.

Maker of Snow Throwers Sued Over Exploding Plastic Wheels

Rick Barrett   www.jsonline.com

Dec. 13 -- Thousands of snow throwers with plastic wheels that can explode and cause injuries could still be in use even four years after a factory recall by the manufacturer, MTD Products Inc.

The recall targeted 130,000 snow throwers sold through hardware stores, home improvement centers and retailers like Kmart and Sears. They were sold from July 2004 through March 2006, for $500 to $800, under the brand names Yard Machines, Troy-Bilt and Craftsman.

The problem is the plastic wheels can explode as the tires are filled with air, sending plastic shrapnel flying.

More than 200 people, including a Milwaukee man, have been injured, even though more than 80% of the machine owners have been notified of the recall that began in October 2006.

"We think that we have exhausted every reasonable effort to contact people," but the work continues, MTD attorney Terry Hollister said Monday.

"We are resolving claims as they arrive, but more importantly, we are trying to prevent more injuries from occurring," Hollister said.

Based in Cleveland, MTD Products is one of the nation's largest outdoor power equipment makers.

The company said it initially received reports of 16 injuries, including fractured fingers, a broken toe and facial lacerations, from the plastic-wheel snow throwers when the tires were overinflated and the rims burst into pieces.

MTD cooperated with the U.S. Consumer Product Safety Commission in the voluntary recall and told consumers to immediately stop using the machines until they received a kit to remedy the problem.

"It's very difficult. But we have worked very hard to track down as many people as we could," Hollister said.

Still, the recall notice came too late for Jim LaFleur, of Hugo, Minn., who was seriously injured while inflating a tire on his snow thrower.

Both of his index fingers and his right thumb were broken. Doctors have implanted metal pins in his fingers, and he now suffers from arthritis in those joints.

A transit bus driver, LaFleur also has lost partial use of his hands.

"In a fairly tight spot, I can't even use my index fingers to put a nut on a bolt," he said.

LaFleur said one of the plastic wheels exploded after he had checked the tire pressure and was putting in a little more air to bring the tire up to full pressure of 30 pounds per square inch.

"It was 'bang,' just like that. There was nothing but pieces left of the wheel," he said.

This fall, LaFleur sued MTD for his injuries. He and his wife, Kristine LaFleur, are seeking an undetermined amount of compensation in excess of $150,000, according to the lawsuit filed in U.S. District Court in Minneapolis.

MTD should have known that plastic wheels and inflatable tires weren't a good combination, said one of their attorneys, Victor Harding of the Milwaukee law firm Warshafsky, Rotter, Tarnoff & Bloch.

Over time, plastic degrades and can become brittle. The wheels were not strong enough to handle the tire air pressure, according to Harding, whose firm has settled at least four similar lawsuits against MTD.

"The company says the tires had to be over-pressurized to explode, but I don't think that has been established yet," Harding said. "I think the company tried to save a nickel (by using plastic wheels), and it has come back to bite them in the butt."

Others have sued MTD, including a 56-year old truck driver who was blinded by plastic shrapnel when putting air in the tire of his snow thrower.

The company has since issued a free service kit, with pressure relief valves, labels and instructions, for consumers with the recalled snow throwers.

MTD says inflatable snow thrower tires should never be filled with high-pressure air compressor.

"Air compressors are high-volume, high-psi machines capable of over-inflating a tire, possibly causing it or the rim to burst," MTD says on its Web site.

Briggs and Stratton Announces Public Offering of $200 Million of Senior Notes

MILWAUKEE -- Dec. 13 and 15 -- Briggs and Stratton Corporation announced today that it has commenced a public offering of $200 million aggregate principal amount of its senior notes due 2020. The notes will be unsecured and will be guaranteed on a senior basis by its significant domestic subsidiary, Briggs and Stratton Power Products Group, LLC, and certain of its future domestic subsidiaries.

On December 15, Briggs and Stratton Corporation announced today that it has priced a public offering of $225 million aggregate principal amount of its senior notes due 2020, which will bear interest at a rate of 6.875%. The offering is being made pursuant to a shelf registration statement and is expected to close on December 20, 2010.

The Company intends to use the net proceeds from the offering to redeem its outstanding 8.875% Senior Notes due March 15, 2011 and to pay fees and expenses in connection with the offering and redemption and for general corporate purposes.

Bank of America Merrill Lynch and J.P. Morgan will act as joint book-running managers for the offering.

Kawasaki Denies Any Move to Beatrice, Nebraska Former Husqvarna Plant

Chris Dunker, www.journalstar.com          

December 15 - The future of Husqvarna's plant building in Beatrice remains a mystery, with operations scheduled to cease over the next month.

The Swedish lawnmower manufacturer announced in May it would be consolidating its Beatrice operations with its U.S. headquarters in Orangeburg, S.C., by the end of the year, taking over 300 jobs along with it.

The building's vacancy has led to rumors of potential suitors for the 274,000-square-foot facility.

One rumor that has held traction over the past few months is the transfer of a division of the Kawasaki Motors Corp., a manufacturer of motorcycles, all-terrain vehicles, jet skis and other utility vehicles, now in Lincoln, to a Beatrice location.

Kawasaki also has contracts in the hundreds of millions of dollars to manufacture rail cars for rail lines in New York City, Connecticut and Washington, D.C.

The size of the rail car manufacturing work led to a rumor that Kawasaki would be moving the manufacturing of its smaller products to Beatrice.

"We had heard that rumor as well, but Kawasaki is not considering moving anything into the Husqvarna building," said Mike Boyle, manager of the Lincoln plant, in a message to the Daily Sun. He said no discussion has taken place about moving any part of the business to Beatrice.

"We certainly feel bad for people in Beatrice losing Husqvarna, but we are in no way looking at using that plant for Kawasaki," Boyle said.

John DeHardt, managing principal of the building for Kessinger-Hunter, the Husqvarna plant's owner, did not return the Daily Sun's call Tuesday.

The Husqvarna plant was built in Beatrice in 2004.

The Toro Company Reports Fiscal 2010 Full Year Report

·       Quarterly sales increased 17 percent; sales for the year grew 11 percent to $1.7 billion with double-digit growth in both Professional and Residential segments

·       Net earnings per share for the full year increased 61 percent to $2.79

·       Average net working capital as a percentage of sales driven down to 14 percent as a result of company initiative

·       Increased quarterly cash dividend to $0.20 per share and authorized the repurchase of 3 million additional shares, as announced last week

·       Company to develop new manufacturing plant in Eastern Europe to serve growing demands for precision irrigation in agriculture

BLOOMINGTON, Minn. -- December 7 -- The Toro Company today reported net earnings of $93.2 million, or $2.79 per share, on net sales of $1,690.4 million for its fiscal year ended October 31, 2010. In the fiscal 2009, the company delivered net earnings of $62.8 million, or $1.73 per share, on net sales of $1,523.4 million.

For the fourth quarter, Toro reported net earnings of $3.2 million, or $0.10 per share, on net sales of $337.3 million. In the comparable fiscal 2009 period, the company reported a net loss of $0.5 million, or $0.02 per share, on net sales $288.6 million.

"For Toro, it was a year marked by many successes and a return to change in the right direction," said Michael J. Hoffman, Toro's chairman and chief executive officer. "Investments we made during the downturn, along with renewed strength in our end markets, particularly worldwide golf and landscape contractor, have our revenues and profits growing once again. New product innovation was a key contributor to our growth, helping increase penetration in key categories. I am very appreciative of our team's performance and what they collectively achieved this year.

"I am also pleased to announce that we are moving forward with a new manufacturing plant in Eastern Europe to serve increasing demands for precision irrigation in agriculture in that region. The move will put Toro closer to this growing market as micro irrigation becomes both a larger part of our business and of irrigated agriculture around the world due to its more efficient use of water."

On another positive note, the company reached its strategic goal of driving 12-month average net working capital as a percentage of sales down "into the teens" in the second quarter, and made measurable progress throughout the year finishing just under 14 percent at fiscal year end. This marks an improvement of more than 50 percent from when the initiative was announced in early 2007 and Toro had roughly 30 percent of sales tied up in working capital. The company expects working capital levels to continue in the mid-teens.

SEGMENT RESULTS

Professional

·       Professional segment net sales for fiscal 2010 totaled $1,085.5 million, up 12.4 percent from last year. Sales across all professional businesses increased for both the quarter and the year. Worldwide orders for golf equipment and precision irrigation systems accelerated due to increased capital spending, new golf projects in Asia, and the successful introduction of several product innovations.

·       Overall shipments for landscape maintenance equipment saw solid growth on acceptance for new products, while both micro and residential and commercial irrigation sales were higher due to increased global demand for precision irrigation solutions. For the fourth quarter, professional segment net sales were $205.2 million, up 24.1 percent compared with the same period last year.

·       Professional segment earnings for fiscal 2010 totaled $173.8 million, up $46.1 million from last year. For the fourth quarter, professional segment earnings were $17.7 million, up $16.5 million compared with the same period last year.

Residential

·       Residential segment net sales for fiscal 2010 totaled $589.7 million, up 10.7 percent from last year. Riding products posted strong gains fueled by expanded placement for Toro's competitively priced TimeCutter(R) zero-turn mowers and continued strong demand for TITAN(R) zero-turn mowers.

·       Snow shipments were higher, benefiting from lean field inventory levels entering the season and positive customer acceptance for Toro's new redesigned line of snow throwers. For the fourth quarter, residential segment net sales were $127.1 million, up 9.6 percent compared with the same period last year.

·       Residential segment earnings for fiscal 2010 totaled $58 million, up $11.6 million from last year. For the fourth quarter, residential segment earnings were $8.8 million, down $5.5 million compared with the same period last year.

REVIEW OF OPERATIONS

Gross margin for fiscal 2010 improved 60 basis points to 34.1 percent compared to last year, driven mostly by favorable product mix and lower manufacturing costs. For the fourth quarter, gross margin decreased 100 basis points to 32.9 percent compared with the same period last year. The decline for the quarter was primarily due to higher commodity costs.

Selling, general and administrative (SG&A) expense for fiscal 2010 was up $29.3 million, or 7.4 percent from last year, but declined as a percent of sales to 25.1 percent from 26 percent. For the fourth quarter, SG and A expense increased $10.6 million, or 11.2 percent from the same period last year, but decreased as a percent of sales to 31.3 percent compared with 32.9 percent. In both periods, SG and A expense was up primarily due to higher employee incentive expense related to the company's significantly improved financial performance.

Other income for fiscal 2010 was $7.1 million, up $8.9 million from last year. The increase was due to expenses incurred last year for several legal matters and income this year from the investment in Red Iron Acceptance, the company's channel financing joint venture.

Interest expense for fiscal 2010 was $17.1 million, down 2.6 percent compared with last year. For the fourth quarter, interest expense was even with the same period last year at $4.4 million.

The effective tax rate for fiscal 2010 was 34 percent compared with 34.4 percent last year. The slight decrease was primarily the result of a valuation allowance last year related to foreign subsidiaries.

Accounts receivable at the end of fiscal 2010 totaled $142.9 million, down slightly from last year on a sales increase of 11 percent. Net inventories for the year were $194.4 million, up 10.3 percent from last year. Trade payables were $125.1 million, up 37.4 percent from last year, driven by the implementation of a new supply chain finance initiative.

Resulting from strong earnings growth and working capital benefits, the company's cash flow from operations for the year totaled $193.5 million compared with $251.5 million last year. With a focus on returning value to shareholders, the company reported last week that its board of directors raised its regular quarterly cash dividend to $0.20 per share from its previous quarterly dividend rate of $0.18 per share. The board also authorized the repurchase of 3 million shares of common stock, in addition to the 1.3 million shares remaining under the prior authorization. For the year, the company repurchased $136 million of company stock.

BUSINESS OUTLOOK

"We are encouraged with the improving health of our business and prospects for the future," said Hoffman. 

"Our extensive lineup of innovative new products and enduring focus on the customer have our strong brands competitively positioned to capitalize on the recovery in our markets. We expect growth to come from a number of areas including international new golf development, the residential shift to zero-turn mowers, and continued momentum for precision irrigation solutions and landscape contractor equipment."

The company currently expects fiscal 2011 net earnings to be about $3.20 per share on a revenue increase of about 5 percent. For its seasonally smaller fiscal first quarter, the company expects to report net earnings of about $0.40 per share.

Non-GAAP Financial Measure

The company's long-term asset management goal was to reduce average net working capital as a percent of net sales below 20 percent, or "into the teens." The company defines net working capital as accounts receivable plus inventory less trade payables.

About The Toro Company

The Toro Company is a leading worldwide provider of outdoor maintenance equipment and beautification products to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields.

Briggs and Stratton Union Workers Start Anti-Dues Petition

Rick Barrett  www.jsonline.com   

Nov. 23, 2010

In what has become an increasingly difficult environment for organized labor, some union workers at Briggs and Stratton Corp. are circulating petitions asking for the right to avoid paying union dues.

The petition to remove the union security clause from the contract would not do away with the union, United Steelworkers Local 2-232, but would do away with the requirement that all union-covered workers pay dues.

The unusual action was triggered by a pending dues increase that would link the size of the monthly dues payment to an employee's wages - in some cases more than doubling the dues of the highest-paid workers.

The move comes as unions at Briggs and several other marquee Wisconsin companies - including Mercury Marine Inc., Kohler Co. and Harley-Davidson Inc. - have had to accept contract concessions such as two-tier wage systems that pay new workers less, increased use of temporary workers, layoffs, wage freezes or increased health care costs.

"Union members generally like their unions," said John Heywood, a business professor at the University of Wisconsin-Milwaukee who teaches classes in human resources and labor relations. 

"But they have had to give up a lot. It's not a good environment."

The Briggs petitioners contend that giving employees the option of not paying dues would hold union leaders more accountable, forcing them to work harder for their members.

"All we are looking for is freedom of choice," said Briggs employee Don Metzefeld.

The Steelworkers represent about 350 employees at the Briggs plants in Milwaukee and Menomonee Falls.

The petitioners have asked the National Labor Relations Board for an election that would decide whether employees have the right to not pay union dues and, under law, still get the benefits of the union contract. They need 107 signatures to get an election, and organizers said they have about 70.

Such petitions are rare, according to the National Labor Relations Board, which said there have been only four of them in Wisconsin and the Upper Peninsula of Michigan in the past four years.

Of those four, three resulted in elections, but none resulted in an elimination of the union security clause.

"Our office has been open since June 1964. Over that time, we have had 180 of these petitions. It's not very many," said Erving Gottschalk, National Labor Relations Board regional director.

Triggering the petition drive among the Briggs workers was the upcoming change in the dues structure.

Union members pay dues of about $44 a month, regardless of their annual income.

Under the new system, effective in January, a worker with gross pay of $5,000 a month, working 190 hours, would pay about $76 a month in dues, according to Steelworkers officials.

In contrast, someone earning $2,000 a month, or $24,000 a year, would see a decrease in dues.

"It's based on your ability to pay. We believe the formula is fair to all of our members," said Michael Bolton, Steelworkers District 2 director.

For five years, the new system has been scheduled to be implemented in 2011, Bolton said, adding that the Steelworkers' leadership opposes the petitioners' efforts. "It's for the betterment of all to have a union shop," he said.

Briggs employees recently approved a labor contract that gave them a signing bonus and 2% annual raises for the next three years, but it also increases health care costs and allows the company to bring in temporary workers to supplement production in the generator division at Wauwatosa.

Briggs officials said they were not involved in the union petitions and declined to comment.

At some companies, many people get the benefits of union representation without having to pay for it, Heywood said.

"Ultimately, a union will not be able to do its job if enough people don't pay," he said. A vote to eliminate a union security clause "can be the first move to undermine and replace the union, if enough people go along for a free ride."

But getting rid of the security clause doesn't mean everyone will abandon a union, said Cheryl Maranto, a Marquette University associate professor of management in the College of Business Administration.

"If there's a small, disgruntled group of people who don't want to be part of the union, it would not be a big deal. But if a large number of people choose not to join the union, and not pay the dues, it would definitely have some impact," Maranto said.

The petitioners said their effort differs from a "decertification" election, which tries to remove a union as the collective bargaining representative.

"Even after a successful de-authorization, every employee remains fully covered by the contract, whether or not he or she remains a union member or pays any dues," a Briggs employee noted in an e-mail. "Union officials have to sell the benefits of union membership."

In the long run, the change could weaken a union's collective bargaining power, said Kimberly Freeman Brown, executive director of American Rights at Work, a pro-union organization.

"It's a drain on resources," she said. "The next time the union negotiates a contract, it won't be in as strong of a position. Long term, it could cost the workforce a lot more than their union dues on a range of issues, including wages and benefits and having a voice in the workplace."