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

Amazon Innovates With It's Business Model, Not Drones

January 21 -- Amazon CEO Jeff Bezos created quite the stir when he announced plans for drone package delivery on 60 Minutes. However, as exciting as commercial applications for drone technology might be, the true innovation lies in Amazon once again reinventing its business model and finding new ways to create value, conduct business and get paid for it.

The essence of business model innovation (BMI) is not a new concept. Indeed, creating disruptive new business models is at the heart of many entrepreneurial start-ups. However, in most large companies and corporations, business models take a back seat to brands. BMI should command more attention as business models, above products, services or brands, are the basis of competitive advantage in the 21st Century.

The implications to this are significant. Over time, the companies that fail to reinvent their business models to challenge outmoded assumptions about their businesses, renew their customer value propositions and change the competitive dynamics of their industries in their favor can quickly become vulnerable to commoditization, obsolescence or business failure.

The trends towards business model-driven strategy are encouraging. According to the Economist, over 50 percent of executives believe that business model innovation will be even more important than product or service innovation. Yet, the American Management Association determined that no more than 10 percent of innovation investment at global companies is focused on developing new business models.

Finding the business model sweet spot can help companies generate both incremental growth from optimizing existing businesses and transformational growth from generating entirely new sources of revenue and value creation. Rather than simply figuring out more efficient ways to operate in existing markets, the components of business models can, individually or collectively, be reinvented to create entirely new markets, new opportunities and structural competitive advantages.

Conceptualizing business model innovation in a framework of four specific actions (W. Chan Kim and Renée Mauborgne, Blue Ocean Strategy) can allow companies to systemically scrutinize how it creates value, challenge prevailing industry logic, legacy assumptions and the existing model.

Let’s explore Amazon through this Eliminate-Raise-Create-Reduce framework and their pathway to becoming the most dominant retailer on the web.

Eliminate: Which elements are taken for granted in your business and can be eliminated?

Amazon found a new channel to the customer through technology by eliminating the traditional retail distribution channel and developing direct relationships with suppliers. Further, such features as “1-click check out” accelerated transaction times by eliminating the need for the manual input of billing and shipping information for every purchase.

Raise: Which elements can be raised above the industry’s standard?

Amazon wasn’t the first online store, but the company recognized the potential to transform the way we shop by building the next generation platform and infrastructure that gives customers unprecedented choice, scope and value. By building the online shopping platform, Amazon radically reinvented the traditional retail business model and the fundamental dynamics of how consumers shop.

Create: Which elements can be created that the industry has never offered?

The Amazon Web Service (AWS) offering, built from the company’s core technology infrastructure, makes web-scale cloud computing cheaper and more accessible. Leveraging Amazon’s vast experience, AWS is an entirely new business model that created a first-mover advantage, and the high growth that goes with it, for the company.

Reduce: Which elements can be reduced below the industry standard?

Perhaps the most controversial element to Amazon’s business model is the element that it has elected to “reduce” – its’ profitability. By design, the company has reduced its short-term profitability with the hopes of capturing the massive market share and scale that will allow them to drive down costs and increase profitability in the future. This innovative approach has the potential to create high switching emotional switching costs for customers and extremely high barriers for competitors in the future.

Amazon’s business model innovation certainly allows it to deliver a diverse portfolio of customer value propositions that serves as its main competitive advantage. Culturally, a continuous focus on business model innovation keeps the company connected to its entrepreneurial roots — an advantage that should be coveted by even the largest of companies.

At the end of the day, “It’s all about customers.” As Amazon demonstrates, even when customers have many choices, with business model innovation, it is possible for revenue and growth opportunities to flow from the basic way a business is put together — even without the use of drones.

Keary Crawford        www.wired.com/insights  

Amazon Wants to Ship Your Package Before You Buy It

January 17 -- Amazon.com knows you so well it wants to ship your next package before you order it.

The Seattle retailer in December gained a patent for what it calls “anticipatory shipping,” a method to start delivering packages even before customers click “buy.”

The technique could cut delivery time and discourage consumers from visiting physical stores. In the patent document, Amazon says delays between ordering and receiving purchases “may dissuade customers from buying items from online merchants.”

So Amazon says it may box and ship products it expects customers in a specific area will want – based on previous orders and other factors — but haven’t yet ordered. According to the patent, the packages could wait at the shippers’ hubs or on trucks until an order arrives.

In deciding what to ship, Amazon said it may consider previous orders, product searches, wish lists, shopping-cart contents, returns and even how long an Internet user’s cursor hovers over an item.

Today, Amazon receives an order, then labels packages with addresses at its warehouses and loads them onto waiting UPS, USPS or other trucks, which may take them directly to customers’ homes or load them onto other trucks for final delivery.

It has been working to cut delivery times, expanding its warehouse network to begin overnight and same-day deliveries. Last year, Amazon said it is working on unmanned flying vehicles that could take small packages to homes directly from its warehouses.

In the patent, Amazon does not estimate how much the technique will reduce delivery times.

The patent exemplifies a growing trend among technology and consumer firms to anticipate consumers’ needs, even before consumers do. Today, there are refrigerators that can tell when it’s time to buy more milk, smart televisions that predict which shows to record and Google’s Now software, which aims to predict users’ daily scheduling needs.

It’s not clear if Amazon has deployed or will deploy the technique. A spokeswoman declined to comment.

But the patent demonstrates one way Amazon hopes to leverage its vast trove of customer data to edge out rivals.

“It appears Amazon is taking advantage of their copious data,” said Sucharita Mulpuru, a Forrester Research analyst. “Based on all the things they know about their customers they could predict demand based on a variety of factors.”

According to the patent, Amazon may fill out partial street addresses or zip codes to get items closer to where customers need them, and later complete the label in transit, the company said. For large apartment buildings, “a package without addressee information may be speculatively shipped to a physical address … having a number of tenants,” Amazon said in the patent.

Amazon said the predictive shipping method might work particularly well for a popular book or other items that customers want on the day they are released. As well, Amazon might suggest items already in transit to customers using its website to ensure they are delivered, according to the patent.

Of course, Amazon’s algorithms might sometimes err, prompting costly returns. To minimize those costs, Amazon said it might consider giving customers discounts, or convert the unwanted delivery into a gift. “Delivering the package to the given customer as a promotional gift may be used to build goodwill,” the patent said.

Greg Bensinger       www.blogs.wsj.com     

Briggs and Stratton Corporation Reports Results For The 2nd Quarter And First Six Months Of Fiscal 2014

MILWAUKEE -- Jan. 23 -- Briggs and Stratton Corporation today announced financial results for its second fiscal quarter ended December 29, 2013.

Highlights:

• Second quarter fiscal 2014 consolidated net sales were $416.6 million, a decrease of $22.5 million or 5.1% from the prior year.
• Increased sales of lawn and garden equipment were offset by lower sales of standby and portable generators compared to last year when Hurricane Sandy occurred.
• The reduced storm activity reduced net sales and diluted earnings per share by an estimated $55 million and $0.12 in the fiscal quarter compared with last year.
• Second quarter 2014 consolidated net income excluding restructuring charges was $2.3 million, or $1.4 million lower than the adjusted net income of $3.7 million in the second quarter of fiscal 2013.
• The Company recorded pre-tax restructuring charges of $2.3 million ($1.6 million after tax or $0.04 per diluted share) during the three months ended December 29, 2013.

"During the quarter we continued to see year over year sales of lawn and garden equipment and related parts sales improving both in North America and in Australia," commented Todd J. Teske, Chairman, President and Chief Executive Officer of Briggs and Stratton Corporation.

 "While these positive trends were not enough to offset the sales we saw last year related to storms Isaac and Sandy, we remain optimistic for an improved lawn and garden market this spring," continued Teske. "Adjusted margins expanded in the quarter in both the engines and products businesses as we continue to focus on reducing costs, streamlining our operations and delivering margin expanding innovations to consumers.

This spring we are excited to launch several new engine and product solutions including Quiet Power Technology™ that reduces the sound of a walk mower as much as 80%, Ready Start® push button starting for riding mowers, and the new Powerflow + Technology™ pressure washer that has both variable flow and pressure capabilities, to name just a few."

Consolidated Results:

Consolidated net sales for the second quarter of fiscal 2014 were $416.6 million, a decrease of $22.5 million or 5.1% from the second quarter of fiscal 2013, due to lower sales of standby and portable generators, partially offset by higher sales of engines and lawn and garden products.

The quarterly impact of fewer weather related events creating demand for generators and the related engines was an estimated sales decrease of $55 million. The fiscal 2014 second quarter consolidated net income, which includes restructuring charges, was $0.7 million or $0.01 per diluted share.

The second quarter of fiscal 2013 consolidated net loss, which includes restructuring charges, was $0.6 million or $0.02 per diluted share. The impact of the reduced engines and generator sales in the quarter was an estimated $0.12 per diluted share compared with last year's second fiscal quarter.

Included in the consolidated net income for the second quarter of fiscal 2014 were pre-tax charges of $2.3 million related to restructuring actions. Included in consolidated net loss for the second quarter of fiscal 2013 were pre-tax charges of $6.6 million related to restructuring actions. After removing the impact of these items, the adjusted consolidated net income for the second quarter of fiscal 2014 was $2.3 million or $0.05 per diluted share, which was $1.4 million lower compared to the second quarter fiscal 2013 adjusted consolidated net income of $3.7 million or $0.07 per diluted share.

For the first six months of fiscal 2014, consolidated net sales were $733.9 million, a decrease of $14.2 million or 1.9% when compared to the same period a year ago. The consolidated net loss for the first six months of fiscal 2014 was $18.6 million or $0.41 per diluted share. The consolidated net loss for the first six months of fiscal 2013 was $17.2 million or $0.37 per diluted share.

Included in the consolidated net loss for the first six months of fiscal 2014 were pre-tax charges of $5.9 million ($4.4 million after tax or $0.10 per diluted share) related to the restructuring actions. Included in the consolidated net loss for the first six months of fiscal 2013 were pre-tax charges of $11.8 million ($7.6 million after tax or $0.16 per diluted share) related to the restructuring actions. After considering the impact of the restructuring charges, the adjusted consolidated net loss for the first six months of fiscal 2014 was $14.2 million or $0.31 per diluted share, which was an increase of $4.7 million or $0.10 per diluted share compared to the first six months of fiscal 2013 consolidated net loss of $9.5 million or $0.21 per diluted share.

Engines Segment

Engines Segment fiscal 2014 second quarter net sales were $265.7 million, which was $8.5 million or 3.1% lower than the second quarter of fiscal 2013. This decrease in net sales was due to lower sales of engines used in generators due to the lack of storm activity during the quarter. Fiscal 2013 second quarter net sales benefited from the impact of Hurricane Sandy. The decrease was partially offset by higher North American sales of engines used on lawn and garden equipment and related service parts due to OEM's building lawn and garden inventory for the upcoming lawn and garden season. 

The Engines Segment adjusted gross profit percentage for the second quarter of 2014 was 21.0%, which was slightly higher compared to the second quarter of fiscal 2013. The increase was related to a favorable impact of 0.6% from sales mix of higher margin service parts and margin contributed from the Branco acquisition which closed late in the second quarter of fiscal 2013. Partially offsetting the increase was a 0.5% unfavorable impact from foreign exchange primarily related to the Australian Dollar. Manufacturing throughput decreased in the second quarter of 2014 by 9%; however, production mix was favorable as proportionately more large engines were built.

The Engines Segment engineering, selling, general and administrative expenses were $45.6 million in the second quarter of fiscal 2014, an increase of $1.7 million from the second quarter of fiscal 2013. The increase was primarily due to increased compensation costs and the added expenses related to Branco, partially offset by lower retirement plan expenses of $0.8 million.  

Engines Segment net sales for the first six months of fiscal 2014 were $449.5 million, which was $10.8 million or 2.5% higher than the same period a year ago. The increase was primarily driven by higher North American sales of engines used on lawn and garden equipment and related service parts due to strong demand stemming from late season growing conditions as well as the anticipated increased retail demand for the upcoming lawn and garden season. The increase was partially offset by lower sales of engines used in generators due to the lack of storm activity during the first six months of fiscal 2014. Hurricanes Isaac and Sandy occurred during the first six months of fiscal 2013.

The Engines Segment adjusted gross profit percentage for the first six months of 2014 was 18.4%, which was 0.5% lower compared to the first six months of fiscal 2013. The decrease was due to the unfavorable impact of 1.1% due to a 12% reduction in manufacturing throughput and 0.4% attributable to unfavorable foreign exchange. The decrease was partially offset by 1.0% from favorable sales mix of higher margin service parts and the margin contributed by Branco.

The Engines Segment engineering, selling, general and administrative expenses were $88.9 million in the first six months of fiscal 2014, an increase of $2.8 million. The increase is primarily due to increased compensation costs and the added expenses related to Branco partially offset by lower retirement plan expenses of $2.4 million. 

Products Segment

Products Segment fiscal 2014 second quarter net sales were $171.5 million, a decrease of $26.0 million or 13.2% from the second quarter of fiscal 2013. The decrease in net sales was driven by lower net sales of standby and portable generators due to no landed hurricanes in the second quarter of fiscal 2014 and unfavorable foreign exchange predominantly related to the Australian Dollar and the Brazilian Real. Hurricane Sandy occurred in the second quarter of fiscal 2013 and no significant storms occurred in fiscal 2014. This decrease was partially offset by favorable late season growing conditions during the second quarter of fiscal 2014 that led to higher net sales of lawn and garden equipment through our North American dealer channel as well as higher sales of pressure washers and service parts. Net sales also benefited from the Branco acquisition.

The Products Segment adjusted gross profit percentage for the second quarter of 2014 was 13.0%, which was 2.4% higher than the adjusted gross profit percentage for the second quarter of fiscal 2013. The increase was primarily related to a favorable mix of products sold in the second quarter of fiscal 2014 with the additional margin from Branco and an increase in net sales of lawn and garden equipment through the North America dealer channel.  The adjusted gross profit percentage also benefited by 0.7% due to improved manufacturing efficiencies and incremental footprint restructuring savings of $0.3 million. Partially offsetting the increase was a 1.0% unfavorable impact from foreign exchange. 

The Products Segment fiscal 2014 second quarter engineering, selling, general and administrative expenses were $26.2 million, an increase of $0.8 million from the second quarter of fiscal 2013. The increase was mainly attributable to the additional expenses from Branco and higher compensation costs partially offset by lower marketing spend and favorable foreign exchange.

Products Segment net sales for the first six months of fiscal 2014 were $324.6 million, a decrease of $46.2 million or 12.5% from the same period a year ago. The decrease in net sales was driven by lower sales of standby and portable generators due to no landed hurricanes during the first six months of fiscal 2014 and unfavorable foreign exchange predominantly due to the Australian Dollar and the Brazilian Real.  Hurricanes Isaac and Sandy occurred during the first six months of fiscal 2013. This decrease was partially offset by favorable late season growing conditions during the first six months of fiscal 2014 that led to higher sales of lawn and garden equipment through our North American dealer channel as well as higher sales of pressure washers and service parts. Net sales also benefited from the Branco acquisition.

The Products Segment adjusted gross profit percentage for the first six months of 2014 was 12.9%, which was 1.1% higher compared to the first six months of fiscal 2013. The increase was primarily related to a 0.8% benefit from improved manufacturing efficiencies and incremental footprint restructuring savings of $0.8 million. The adjusted gross profit percentage also benefited from a favorable mix of products sold in the first six months of fiscal 2014 with the additional margin from Branco and an increase in net sales through the North America dealer channel. Partially offsetting the increase was a 0.4% unfavorable impact from foreign exchange. 

The Products Segment engineering, selling, general and administrative expenses were $51.7 million in the first six months of fiscal 2014, an increase of $2.9 million from the first six months of fiscal 2013. The increase was mainly attributable to the additional expenses from Branco and higher compensation costs, partially offset by lower marketing spend and favorable foreign exchange.

Corporate Items:

Interest expense for the second quarter and first six months of fiscal 2014 was comparable to the same periods a year ago.

The effective tax rate for the second quarter and first six months of fiscal 2014 were 69.8% and 25.5%, respectively, compared to 156.5% and 27.8% for the same respective periods of fiscal 2013. The tax rate for the second quarter and first six months of fiscal 2014 was primarily driven by net operating losses of certain foreign subsidiaries without a realizable tax benefit. The second quarter and first six months of fiscal 2013 included a tax expense of $1.0 million primarily driven by nondeductible acquisition costs and net operating losses of certain foreign subsidiaries without a realizable tax benefit.

Financial Position:

Net debt at December 29, 2013 was $126.8 million (total debt of $225.0 million less $98.2 million of cash), or $101.8 million lower from the $228.7 million (total debt of $246.9 million less $18.2 million of cash) at December 30, 2012. Cash flows used in operating activities for the first six months of fiscal 2014 were $45.2 million compared to $75.4 million in fiscal 2013. The improvement in operating cash flows was primarily related to changes in working capital needs in fiscal 2014 associated with lower seasonal growth in accounts receivable and inventory due to lower production levels and planned inventory reductions. In addition, no contributions to the pension plan were made in fiscal 2014 compared to $16.2 million in the first half of fiscal 2013.

Restructuring:

The previously announced restructuring actions remain on schedule. Production of horizontal shaft engines was concluded at the Auburn, Alabama plant during the second quarter of 2014. As noted previously, pre-tax restructuring costs for the second quarter and first six months of fiscal 2014 were $2.3 million and $5.9 million, respectively. Pre-tax restructuring cost estimates for fiscal 2014 remain unchanged at $6 million to $8 million. Incremental restructuring savings for fiscal 2014 are expected to be $2 million to $4 million.  

Share Repurchase Program:

On August 8, 2012, the Board of Directors of the Company authorized up to $50 million in funds associated with the common share repurchase program with an expiration date of June 30, 2014. On January 22, 2014, the Board of Directors of the Company authorized up to an additional $50 million in funds for use in the Company's common share repurchase program with an extension of the expiration date to June 30, 2016. The common share repurchase program authorizes the purchase of shares of the Company's common stock on the open market or in private transactions from time to time, depending on market conditions and certain governing loan covenants. During the first six months of fiscal 2014, the Company repurchased 1,066,447 shares on the open market at an average price of $19.77 per share.

Outlook:

For fiscal 2014, the Company has revised its full year guidance to exclude the potential positive benefit of landed hurricanes from the upper end of the revenue and earnings guidance. In addition, the lower end of the guidance has been reduced to give effect to approximately $3.0 million of negative foreign currency fluctuations and the lack of European snow sales that are not likely to be recovered in the second half of the fiscal year.

The Company now expects net income to be in a range of $48 million to $57 million or $1.00 to $1.18 per diluted share prior to the impact of any additional share repurchases and costs related to our announced restructuring actions. Our fiscal 2014 consolidated net sales are projected to be in a range of $1.88 billion to $2.0 billion.

We continue to estimate that the retail market for lawn and garden products will increase 4-6% in the U.S. next season. The estimated incremental impact of exiting the sale of lawn and garden equipment through national mass retailers is approximately $10 million to $15 million of reduced sales in fiscal 2014. In addition, sales in fiscal 2013 were favorably impacted by sales of portable and standby generators in response to power outages during Hurricanes Isaac and Sandy.

The upper end of our earnings projections contemplates a higher market recovery in excess of 10% for the U.S. lawn and garden market. Operating income margins are expected to improve over fiscal 2013 and be in a range of 4.5% to 4.8% and reflect the positive impacts of the restructuring actions. Interest expense and other income are estimated to be approximately $18 million and $5 million, respectively. The effective tax rate is projected to be in a range of 30% to 33% and capital expenditures are projected to be approximately $50 million to $55 million.    

CPSC, Honda Recall Honda and Columbia Brand Walk Mowers

January 15 -- Honda has recalled about 20,800 Honda brand and 48 Columbia brand 21-inch walk lawnmowers in the U.S., along with 3,000 in Canada.

The Honda mowers are red and silver (HRR) and red and gray (HRX). Both have “Honda” on the engine cover. The model and serial numbers are located on the certification label that is affixed to the cutter housing deck behind the engine.  Honda recalled lawnmowers are:

Honda Models ….. Serial Number Range

HRR2169VLA ….. MZCG-8764914 - MZCG-8824353

HRX2174VLA ….. MAGA-2255148 - MAGA-2260227

The Columbia brand lawnmower, model number 12ALD33Q897, comes in orange and black. “Honda” is printed on the engine cover. The Honda engine serial number is located on a label on the back of the engine. It is also stamped into the engine block adjacent to the oil filler cap/dipstick. A range of affected Honda engines installed in Columbia brand lawnmowers sold in the U.S. follows:

Columbia Model ….. Honda Engine Serial Number Range

1A313KC0835 ….. GJARA 3641724 through GJARA 3642215

Incidents/injuries. Honda has received 11 reports of the lawnmower’s blade continuing to rotate after the handlebar control lever was released. No injuries were reported.

Remedy. Consumers should immediately stop using the recalled lawnmowers. Honda model owners should contact a Honda Power Equipment dealer to schedule a free repair. Columbia model owners should contact a Honda Engine dealer to schedule a free repair. American Honda is contacting all registered customers directly. 

Places Sold. Honda brand lawnmowers were sold at Honda Power Equipment dealers and Home Depot stores nationwide from January 2013 through December 2013 for between $580 and $780. Columbia brand lawnmowers were sold at Beaver Valley Supply in Denver, CO; Lawn Equipment Parts Co, Inc. in Marietta, PA, and at Smiths South-Central Sales Co. in Spring Hill, LA, from January  2013 through December 2013 for $500.

OPEI Branches Out to Corded Electric and Battery Product Segments

January 6 -- The Outdoor Power Equipment Institute (OPEI), an international trade association representing 100 small engine, utility vehicle and outdoor power equipment manufacturers and suppliers, announced it is ramping up its regulatory, standards and market reporting and statistics efforts to meet the needs of the corded electric and battery product segments.

In recent months, OPEI has welcomed several new battery/electric companies to its membership, including iRobot, Positec, Stanley Black and Decker and Sunrise Global Marketing, and John Cunningham, president of the Consumer Products Group at Stanley Black and Decker, Inc. recently joined the 2013-2014 OPEI Board of Directors.

To help the industry have a voice in regulatory and standards development, OPEI also formed an Electric Products Committee, currently led by representatives from Stanley Black and Decker and Techtronic Industries, N.A.

The OPEI Electric Products Committee is tasked with coordinating with the International Electrotechnical Commission (IEC) on standards for battery/electric products for international markets, as well as regional adoptions for the North American market. The committee members are given an opportunity to participate, review and give input in the development of product standards.

The first order of business has been the development of the first ever OPEI/ANSI standard for an electric robotic mower. Fourteen member company representatives are currently reviewing IEC standards for electric robotic mowers and identifying modifications for the North American market. Projects are underway to develop standards for battery/electric chain saws, lawn hedge trimmers and lawn trimmers.

As sales and demand for battery/electric driven outdoor power equipment increases, OPEI is expanding its market statistics collection to capture and track the growth of this product segment.

Echo Incorporated Announces Tim Dorsey as New President

Chicago, IL – January 6 -- Effective January 1, 2014 Tim Dorsey becomes the second American President of outdoor power equipment manufacturer ECHO Incorporated, a subsidiary of Yamabiko Corporation of Japan. He replaces retiring President Dan Obringer.

Dorsey has worked for ECHO for 18 years in a variety of positions including the last seven years as Vice President of Systems and Logistics.  As a member of the Executive Team, Dorsey played a key role in the company’s growth and profitability over the years.

“The transition in leadership to Tim will be seamless,” says Obringer. “We have a great Executive Team and Tim has been a key member for the last seven years.  Our business has grown tremendously and I expect this momentum to continue and ECHO to grow and prosper under Tim’s leadership.”

Obringer, who has served as President for the past five years, will remain in an advisory capacity for the next year.

Dorsey and his family live in Cary, IL.  He is a graduate of DePaul University.

ECHO Incorporated is a leading manufacturer of professional-grade, high performance outdoor power equipment for professional and residential use. The corporation markets its products through independent dealers under the brand names ECHO, Shindaiwa, ECHO Bear Cat, and Crary. It also markets the ECHO brand through The Home Depot. The company is based in the Chicago suburbs.

Briggs and Stratton Adds Industry Veterans to its Commercial Power Team

MILWAUKEE, Jan. 07 -- Briggs and Stratton Corporation is adding two commercial engine industry veterans to its Commercial Power sales team.  The Company is pleased to announce the addition of Randy Lockyear as its Senior Director of Commercial Sales. Lockyear will oversee sales in North America of the corporation's commercial engines, notably its Vanguard™ brand of engines.  In addition, Rick Wendt has joined the Company as Director of Commercial Sales, focusing on the light construction and utility commercial business.

Randy Lockyear comes to Briggs and Stratton from Kawasaki Motors Corp., where he spent more than 20 years in a variety of leadership positions, most recently as National Sales Manager North American/Australian Engine Sales.  Rick Wendt comes to the Company from American Honda Motor Company, Inc., where he spent more than 30 years in multiple leadership roles within that organization, most recently as National OEM Sales Manager for Honda engines.

"Randy and Rick are both respected leaders in the commercial and industrial engine community  and we're excited to have them lead our commercial sales team," said Joe Wright, Senior Vice President and President, Briggs and Stratton engines group.  "We have made significant investments in commercial engine innovation and product offerings over the past few years.  The addition of Randy and Rick, with their deep industry knowledge, significantly enhances the strength of our commercial sales team and reinforces our commitment to growing our commercial engine business and profitability."

About Briggs and Stratton Corporation

Briggs and Stratton Corporation, headquartered in Milwaukee, Wisconsin, is the world's largest producer of gasoline engines for outdoor power equipment.  Its wholly owned subsidiaries include North America's number one marketer of portable generators and pressure washers, and it is a leading designer, manufacturer and marketer of lawn and garden and turf care through its Simplicity®, Snapper®, Ferris®, Murray®, Branco® and Victa® brands. Briggs and Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents. 

About Briggs and Stratton Commercial Power

Briggs and Stratton® Commercial Power is a leading provider of commercial engine solutions. The Vanguard engine family is the Company's premier line of gasoline, and liquid propane powered single cylinder and V-Twin engines from 5.5 to 36 gross horsepower that power commercial lawnmowers, light construction equipment, utility vehicles, generators, pumps and a variety of other commercial and industrial applications.