Husqvarna Group Celebrates 325 Years of Innovative Swedish Engineering

On April 27, (2014), Husqvarna Group celebrates 325 years of innovative Swedish engineering. The Group reflects on a unique history, from weapons to robotic mowers, constantly setting new standards in technology and usability.

Since starting out in 1689, Husqvarna Group has manufactured a wide range of quality products. Excellent engineering skills, a strong entrepreneurial spirit and a passion for quality has led to innovative solutions, successfully taking the company from weapons, via sewing machines, stoves and motorcycles, to today's cutting-edge outdoor power products.

"For 325 years Husqvarna has developed and manufactured quality products, to help users achieve great results," says Kai Wärn, President and CEO for Husqvarna Group. "As we look into the future we will continue to deliver high performing products and solutions building on our values of entrepreneurial spirit and staying close to our customers."

Our heritage

In the late 1600's, the wars that raged across Europe resulted in an increase in Sweden's weapons production. Hydropower was required for production, so in 1689, a drilling works was established beside the water falls in Huskvarna in southern Sweden (at that time spelled Husqvarna), where many products are still produced today.

As the need for weapons declined, the company saw an opportunity to branch out by applying the precision engineering skills achieved from producing weapons, to a whole new set of other products ranging from sewing machines, hunting weapons, wood stoves, mincing machines, bicycles, motorcycles, gas stoves, microwave ovens and much more. Since the 1960's, the company focuses on outdoor power products for parks, gardens, forests and products for the construction industry.

Environmental and ergonomic concerns

The know-how gained from developing and manufacturing so many different products became an asset when designing new products and challenging existing solutions, an early way of "thinking outside the box".

Throughout the years, Husqvarna Group has proved its technological leadership by introducing ground breaking and award winning solutions and products with a strong user focus:

  · X-Torq® predominantly used in handheld products, that delivers lower fuel consumption and reduced exhaust emission levels in accordance with the most stringent environmental regulations.

  · AutoTune™, a technological and environmental breakthrough in professional chainsaws, minimizes exhaust emissions and optimizes engine performance, omitting the need to spend time on carburettor adjustments.

  · Battery-powered mowers and chainsaws for semi-professionals; light-weight, quiet and free from direct emissions.

  · Robotic mowers, the quiet self-operating mowers that frees up time for homeowners and facility managers produces no direct emissions during use and consumes very little energy.

  · Demolition robots for the construction industry deliver high power despite of low weight, equipped with remote-control that enables demolition tasks in areas where it is too dangerous for workers to enter.

Our milestones

1689: Rifle factory

When Swedish weapons production took off in the late 17th century, hydropower was needed to handle certain mechanical operations. The drillingwork at the waterfalls in Huskvarna, southern Sweden, is our first plant. At the beginning of the 18th century this state-owned rifle factory had some 1,000 employees. The last shotgun was produced in 1989.

1867: Limited company

The limited company Husqvarna AB is formed.

1872: Breaking new ground

Husqvarna's rifle contract with the Crown comes to an end and the company decides to branch out. This becomes the start of a very innovative and ambitious period, resulting in a broad array of new products including sewing machines (1872), hunting weapons (1877), wood stoves (1884), mincing machines (1890), the first Swedish typewriter (1895). Household equipment is still sold in the Nordics by Electrolux. The sewing machines are now part of SVP Worldwide.

1896: Bicycles

The era of bicycles is started in the factory and Husqvarna-branded bicycles become popular. A large number of patents are registered. The last bicycle is produced in 1962.

1903: The motorcycle era begins

The production of motorcycles gives Husqvarna a world-wide reputation, when lightweight yet powerful engines helped make some of the most successful track racing and motocross bikes in history. Years later, in 1982, a Husqvarna motorbike, MC 258, wins the 250cc class of the legendary Paris-Dakar rally. The motorcycle division was divested in 1987, and is now part of KTM in Austria.

1919: The first lawnmower

When Husqvarna acquires `Norrahammars Bruk', the product range expands to include heating boilers and lawn mowers. This acquisition turns out to be the first step in the Group's current focus on outdoor power products. The first motorized Husqvarna lawnmower for commercial use is launched in 1947, and in 1959 the first homeowner model reaches the market.

1959: The first chainsaw

As demand for bicycles, mopeds and motorcycles declines, forestry becomes increasingly important in Sweden. Husqvarna's expertise in engines from the production of motorcycles is now utilized in new product areas. Husqvarna introduces its first chainsaw, Husqvarna 90. The chainsaw was shaped by iconic Swedish designer Sixten Sason and used motorcycle muffler technology to achieve lower noise levels than its competitors. The chainsaw is later further developed into power cutting tools for the construction industry.

1968: Flymo

Acquisition of the hover lawn mowers company AB Flymo.

1969: Setting new standards for ergonomics

When the Husqvarna 180 chainsaw is released it features a groundbreaking anti-vibration function that prevents `white fingers disease', a common problem for forestry workers around the world.

In 1973, Husqvarna introduces the world's first chainsaw with an automatic chain-brake. In 1999, the feature TrioBrake™ is introduced enabling users to activate the chain break with the right hand - further reducing the risk of injury for forestry workers.

1970: First female board member

When Lil Wettergren is elected to the Husqvarna Board of Directors, she becomes the first female board member of a Swedish listed company.

1978-79: Outdoor power products expands

Electrolux acquires Husqvarna and the outdoor operation continues to expand both through organic growth and through acquisitions, such as AB Partner and Jonsereds AB. Power products now include chainsaws, motorcycles, lawn mowers and power cutting machines.

1980's: Strengthened positions in the U.S.

Organic growth and acquisitions expand Husqvarna's operations in lawn and garden. Two major acquisitions, Poulan/Weed Eater and Roper Corp, are complementing Husqvarna's product range making the U.S. the largest market for garden equipment.

1995: The birth of the robotic mower

Husqvarna Group pioneered the market by launching the world's first solar powered robotic lawn mower. This is the world's first fully robotic lawnmower, running on nothing but solar power; a predecessor to today's Husqvarna Automower®. In 2013, a third generation model with built-in GPS is introduced. It took almost 15 years until sales started to take-off for robotic mowers making it a big success story.

2002: Power cutters and diamond tools

When Partner AB launches the first power cutter as a saw accessory in 1958, it is the starting point of what today is the business area Construction. When Diamant Boart International was acquired in 2002, the construction business doubled its' the size, turning into a world leader within its segment.

2006: On its own feet

Husqvarna becomes independent again and is listed on NASDAQ OMX Stockholm. Headquarters is based in Stockholm.

2007-2008: Expansion

Husqvarna expands in watering when acquiring the Gardena brand. The acquisition of Zenoah in 2007 brings strong brands, complementary products and geographic expansion in Japan. In 2008, the production in China is expanded through the acquisition of the Jenn Feng operation and the construction of a new plant for chainsaws and other handheld products.

2009: Husqvarna demolition robot

Husqvarna's first remote-controlled demolition robot is launched, designed for all demolition tasks, also where it is too dangerous for workers to enter.

2012: Battery products

Husqvarna introduces a range of battery products for semi-professionals; chainsaws, trimmers, hedge trimmers and a rider. These are emission-free, with less noise, vibration and maintenance.

Troy-Bilt Electric Leaf Blowers Recalled by MTD and CPSC

April 22, 2014

Recall Summary

Name of product:

Troy-Bilt electric leaf blowers

Hazard:

The blower’s impeller can break and strike the operator during use, posing a laceration hazard.

Consumer Contact:

Troy-Bilt toll-free at (888) 848-6038 from 8 a.m. to 5 p.m. ET Monday through Friday or online at www.troybilt.com and click on Recalls under the Owner’s Center tab for more information.

Units

About 134,000

Description

This recall involves Troy-Bilt electric leaf blowers with model TB180B, item number 41BA180G966 and serial numbers ranging from S1D111XK0001 through S1F152XK2008.  They were manufactured between April 11, 2011 and June 15, 2012. The third through sixth characters of the serial number identify the manufacturing date.  The third character is the month, for example D for April, E for May and F for June. The fourth and fifth characters are the day of the month. The sixth character is the last digit of the year of manufacture. Model, item and serial number are located on a white label on the bottom of motor housing. The 7.5 amp electric blowers are red. Troy-Bilt and TB180B appear on a sticker on both sides of the unit.

Incidents/Injuries

MTD has received 17 incident reports, including 12 injuries that resulted in lacerations requiring stitches, cuts and bruises.

Remedy

Consumers should stop using the recalled blowers immediately. Lowe’s customers should return them to Lowe’s for a free replacement.  Consumers who bought their blowers online at www.troybilt.com should contact Troy-Bilt for a free replacement.

Sold at

Lowe’s stores nationwide and online at www.troybilt.com from May 2011 through November 2013 for about $34.

Importer

MTD Southwest Inc., of Tempe, Ariz.

Manufacturer

KingClean Electric Co., Ltd., of China

Manufactured in

China

Remington Leaf Blowers Recalled by MTD and CPSC

April 22, 2014

Recall Summary

Name of product:

Remington electric leaf blowers

Hazard:

The blower’s impeller can break and strike the operator during use, posing a laceration hazard.

Units

About 24,000

Description

This recall involves Remington electric leaf blowers with model RM180B, item number 41AA180G983 and serial numbers ranging from S1E131XK0001 through S1E162XK2008. They were manufactured between May 13, 2011 and May 16, 2012. The third through sixth characters of the serial number identify the manufacturing date.  The third character is the month, for example D for April, E for May and F for June. The fourth and fifth characters are the day of the month. The sixth character is the last digit of the year of manufacture. Model, item and serial number are located on a white label on the bottom of motor housing. The 7.5 amp electric blowers are black. Remington, Mighty Sweep and RM180B appear on a sticker on both sides of the unit.

Incidents/Injuries

One incident has been reported by MTD and that incident resulted in cuts and bruises.

Remedy

Consumers should stop using the recalled blowers immediately and contact Remington for a free replacement.

Sold at

Various retailers nationwide and online at mtdproducts.com from May 2011 through December 2013 for between $30 and $40.

Importer

MTD Southwest Inc., of Tempe, Ariz.

Manufacturer

KingClean Electric Co., Ltd., of China

Manufactured in

China

Clark Pulley Celebrates 25 Years

April 1, 2014 marked a milestone for a local company.

On this date 25 years ago, Agri-Fab Incorporated, based in Sullivan, Ill., purchased Clark Pulley Industries located in the Russellville Industrial Park.

Agri-Fab, a manufacturer of lawn and garden grooming equipment, purchased Clark Pulley, which manufactures pulleys for the lawn and garden industry. Both companies service a customer base that includes MTD, Husqvarna, Hydro Gear, Briggs & Stratton and Ariens, all of which have a strong presence in the market.

Ron Harshman, President/CEO and one of the original six founders of Agri-Fab, commuted between Sullivan and Russellville for two years after the purchase, spending one week each month helping develop operating systems for Clark Pulley. This was the framework for the success that Clark Pulley has enjoyed for the past 25 years.

Since being purchased in 1989, Clark Pulley has served the local economy with stable employment for local residents, as 20 percent of the original workforce at the time of the purchase continues to be with the company today.

Clark Pulley maintains an average workforce of 45 full-time employees and current temporary employment of 22 employees.

Joining in the 25-year celebration were members of the AF Holding management team who made the trip down to Russellville to enjoy time with all the employees of Clark Pulley.

Coinciding with the anniversary, Clark Pulley produced its 147,500,000th pulley, which was added to a plaque that was presented by Clark Pulley president Terry Moore to Harshman.

http://www.franklincountytimes.com/       April 9, 2014

Wright Lawn Mowers Survive Great Recession and Cut a Path to Commercial Success

April 6 -- I get a million pitches to write about professional services companies, health firms, staffing services and consultants. But a lawn mower manufacturer? In Washington’s back yard?

It conjured up romantic images of Henry Ford-like industrialists strutting through their factories, building fortunes, commanding legions of blue-collar workers.

Then I interviewed William Wright, a 58-year-old tinkerer and inventor who had to raise millions, mortgage his home, fire dozens of workers, iron out a million mechanical problems and fight off a financial crisis to give birth to his vision of the perfect — and profitable — lawn mower.

The Frederick, Md., manufacturer’s sales dropped by more than a third in three months and stayed there for a year during the Great Recession. The company went into the red. Cash was drying up. Banks were not lending.

Chief executive Wright went into cost-cutting mode, slashing head count from 125 employees to 75. The layoffs left him with a lean, highly motivated workforce, “the best of the best,” said the former Volvo mechanic.

Thanks to those moves and to a resurgent economy, Wright Manufacturing came out the other end of the Great Recession a leaner, stronger company. It expects to ring up more than $40 million in sales this year and produce enough profit to send its 22 investors a monthly dividend.

Nearly 85 percent of its 170 employees are factory workers, turning out between 600 and 800 lawn mowers a month. The machines sell for $7,000 to $11,000 apiece, depending on size and horsepower. Most Wright lawn mowers are known by a distinctive perch that allows the operator to ride standing at the back.

The company’s lawn mowers are sold to dealers across the United States and Europe. Wright’s best markets are Massachusetts, Florida, Chicago and Kansas City. Wright also makes mowers sold under the John Deere brand.

Wright would not provide the scope of his profit except to say, “We make a serious margin.”

He said the company’s edge is its ability to keep warranty claims to about 1 percent of revenue. The industry average is 2 percent.

“We went through skin, muscle and bone and were left with an amazing team. We had a lot of brain power. We got rid of costly traditions. We gave people permission to improve their work.”

The company encouraged workers to share training tips, including more efficient ways to perform the same tasks. Basic things such as new ways to store tools became part of the company’s “goof proofing” campaign to reduce mistakes.

“If you wait for management, it may take years to get done,” said Wright. “But the workers come up with more, smaller ideas, more frequently and get [them] implemented faster.”

During the recession, Wright’s managers became fanatics about hiring, looking for highly motivated employees.

“We don’t take weak employees,” the founder said.

The company increased its hiring standards. Prospective hires are interviewed by three Wright employees, who must unanimously agree to make the hire. Prospective employees must also tour the plant and meet people so they get a taste of the culture.

“We are careful,” Wright said. “We are extremely selective. We got paranoid about hiring good people. We hire for attitude and aptitude, not prior experience or credentials. We like to train for the jobs in-house.”

Take the all-important welders. Each lawn mower has hundreds of parts that must be skillfully welded so the machine holds together. Because of the skill and training involved, welders tend to be higher paid than other factory employees, earning between $14 and $18 per hour, depending on their skill and productivity.

But Wright didn’t necessarily want longtime, skilled welders. He wanted young, inexperienced — less expensive — laborers whom he could mold into Wright Manufacturing employees.

“We would rather have somebody who worked at McDonald’s and has good character and work ethic and teach them how to weld,” he said. So Wright instituted a welding school to train workers from scratch.

Wright grew up north of New York City, and after a year of studying engineering at Clarkson College, he quit to go to a small Florida college.

He started off his professional life three decades ago repairing Volvos in the Baltimore-Washington area. In his spare time, he and his wife began a lawn mowing business to make extra cash.

Wright loves tinkering with gadgets, and around 1983 he decided to build an all-metal grass catcher to attach to his lawn mower. He then approached a local lawn mower dealer about selling his contraption. The dealer sold 200 Wright-made grass catchers the first summer.

Making such a small number of the accessories was not yielding enough profit, so Wright rented a 1,200-square-foot space in Gaithersburg, bought a welding machine and scaled up his grass catcher manufacturing.

“We could make them cheaper if we could make more of them,” he said.

He recruited 400 dealers across the United States, charging $300 each for customized grass catchers that fit more than a dozen different mowers.

He also designed and built a “sulky,” which allowed the person operating the lawn mower to ride standing at the back.

As the business was getting off the ground, he could fall back on other revenue streams. Wright’s lawn mowing enterprise had grown into a $1 million-a-year operation, with 12 trucks, 500 customers — mostly Potomac homeowners — and netting him a $200,000 a year living. He had learned computer programming during his one-year stint at Clarkson, so he put that to work in 1983 by writing software that helped keep track of his mowing service.

As his manufacturing business grew, he decided he wanted to build not just grass catchers but the entire mower. He sold the software business for $125,000 in 1993. The same year, he sold the lawn mowing business for a six-figure profit.

He still needed more money. He mortgaged his multimillion-dollar home, twice. He contacted friends and others through word of mouth, raising between $1.5 million and $2 million. He took out bank loans and maxed out his credit cards.

“When you are an entrepreneur, you get creative and desperate at the same time,” Wright said.

The first year he made mowers, he lost $18,000, and the business grew in fits and starts after that, turning a profit one year, then losing money. Wright struggled to control its warranty costs and figure out a price that allowed both the company and its dealers to turn a profit.

Over the past three years, though, Wright Manufacturing has hit its stride, turning its 20 investors into happy campers.

“You work on every angle until one day, you sort of come out of the woods,” said Wright, who owns 57 percent of the company. “Running a business means eliminating as many problems as you can. You always have problems. But when enough parts start to work well . . . the profits start rolling in.”

Thomas Heath       http://www.washingtonpost.com/business    

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/  

Amazon Plans Revamp of its Delivery Network

Company-controlled capacity to serve 40 largest population centers, consultant says.

March 6 -- Amazon.com. Inc. is moving quickly to revamp its delivery network to gain more control over its fulfillment infrastructure while reining in spiraling transportation costs, according to a supply chain consultant with close ties to the e-tailing giant.

James Tompkins, who runs Tompkins International, a Raleigh, N.C.-based consultancy, said Amazon has divided the nation into three segments based on population size: The top 40 markets, which comprise about half of the U.S. population; the next 60 largest population areas that account for about 17 percent, and the remaining population, which account for about one-third.

The top 40 markets will be served by a private fleet being built by Amazon to support an expansion of its online grocery business, called "Amazon Fresh," according to Tompkins. The next 60 will be served by an array of regional parcel delivery carriers, he said. The remainder will be served mostly by the U.S. Postal Service, he said.

UPS Inc., which today handles much of Seattle-based Amazon's current deliveries, will not play a prominent role in the network realignment, Tompkins said. Nor will FedEx Corp., which manages a lesser portion of Amazon's delivery business. An Amazon spokeswoman was unavailable to comment.

Orders will be routed through Amazon's 55 fulfillment centers, with deliveries made the same day, the next day or, at most, in two days, Tompkins said. Inventory will be positioned to exclusively support local deliveries. A national delivery network as operated by providers like FedEx and UPS will be rendered irrelevant because they will be considered too slow to suit the typical Amazon customer, he said.

Tompkins said that Amazon has a timeline for its rollout, but that he is unaware of the details. "They are moving on this very aggressively," he said.

Amazon two years ago seriously considered a bid for FedEx as a means of buying into an existing delivery operation, according to Tompkins. However, Jeffrey P. Bezos, Amazon's founder and CEO, backed away after determining FedEx's network structure was too national in scope to fit Amazon's strategy of local fulfillment and delivery, Tompkins said. A FedEx spokesman declined comment.

Tompkins has worked in the supply chain management field for decades and is considered one of the nation's leading authorities on its role in e-commerce. His relationship with Amazon is not clearly defined, a status seemingly more by design than coincidence. When asked to describe the nature of his involvement with Amazon, Tompkins replied that he was contractually obligated not to comment.

A "FRESH" EXPANSION

Though Amazon Fresh has been operating for five years, it is today only available in Seattle, San Francisco, and Los Angeles. However, Amazon plans to expand the grocery business to between 30 and 40 U.S. markets in 2014, according to Tompkins.

Tompkins said the private fleet network would commingle groceries with general merchandise, thus building the scale needed to make ground shipping cost-effective and to offer a compelling value to customers, Tompkins said. It would also set in motion a chain of events that would result in Amazon competing with FedEx and UPS.

The online grocery business, which is plagued with high fulfillment costs, is not considered a particularly attractive enterprise on its own. However, Bezos has used Amazon Fresh as a proving ground to test a more ambitious delivery model rather than as a way to build a national grocery footprint, according to Tompkins. By using his own vehicles to deliver groceries, Bezos has been able to fine-tune his own delivery network and understand the pros and cons of leveraging his own infrastructure than those of the incumbents, Tompkins said. Now Bezos is poised to apply that knowledge on a broader scale, Tompkins said.

Transportation costs remain a thorny issue for Amazon. Its shipping expenses in 2012, the most recent period that full-year figures were publicly available as of this writing, rose to more than $5.1 billion, up from nearly $4 billion in 2011, according to the company's 10-K filing with the Securities and Exchange Commission.

Shipping costs in 2012 exceeded shipping revenue by nearly $3 billion, according to the filing. Amazon generates much of its shipping revenue from third-party merchants who sell products through the company's site and use its fulfillment services for storing inventory, picking and packing, and shipping.

In the filing, Amazon said it expected its "net cost of shipping"—the ratio of shipping costs to revenue—to continue rising as parcel rates increase and more customers take advantage of the company's delivery offerings such as "Prime," which charges a $79 annual fee for unlimited two-day deliveries. Amazon has said it is considering a $40 annual price hike for Prime subscriptions.

Not everyone believes Amazon will migrate from FedEx and UPS so quickly. Scott Devitt, Internet analyst for investment firm Morgan Stanley & Co., said during a late February webcast that Amazon will continue to leverage the established delivery infrastructure and will not become a disruptive force in the delivery market. Amazon will continue to use its enormous buying power to extract favorable rates from its delivery partners and will see that as a more attractive alternative to building out its own network, Devitt said.

Frederick W. Smith, FedEx's founder, chairman, and CEO, told analysts recently that only FedEx and UPS have the delivery networks capable of efficiently handling the demands of Amazon and other e-commerce providers. Smith said his company, UPS, and the U.S. Postal Service would remain at the forefront of e-commerce shipping for the foreseeable future.

Tompkins said that Amazon has been planning its strategy long before the well-publicized delivery problems that occurred during the 2013 holiday season, when about five million of its shipments were not delivered in time for Christmas. Much of the fallout was laid at the feet of UPS, though some have argued that Amazon erred by understating how many packages were coming UPS' way toward Christmas day, thus overwhelming the Atlanta-based carrier's air network and triggering the backlog.

Amazon is still smarting from the fiasco, however. The company's fulfillment executives believe UPS and FedEx are not investing enough in equipment, infrastructure, and other resources to keep up with Amazon's growth, according to a person familiar with the matter.

These days, every move in the e-commerce space is significant because of its enormous potential. E-commerce has penetrated just 10 percent of the U.S. market, and between 6 and 7 percent of the global market, according to Morgan Stanley estimates. Based on projected annualized growth rates of 15 percent, e-commerce could be a $1 trillion worldwide business by 2016, according to the firm.

Mark B. Solomon        http://www.dcvelocity.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.

Don Crader, CEO of Crader Distributing, Passes

Donald "Don" Crader, 81, CEO of Crader Distributing Co. in Marble Hill, Mo., and its sister organization, Blue Mountain Equipment in McKinney, Texas, died Sunday at Southeast Hospital. He was 81.

Crader Distributing Co. was founded in 1944 by Buford Crader, Don Crader's father, and two partners, according to the company's website. It is the exclusive distributor of STIHL outdoor power equipment in Missouri, Kansas, Nebraska and Southern Illinois.

The company has done business with many family-owned dealers for about 50 years.

Jim Riley, founder of Red Letter Communications, said in an email to the Southeast Missourian that about 25 years ago, Don and his son Stan Crader gave him one of his first business opportunities, introducing Red Letter Communications to STIHL.

"We've been business associates and friends ever since," he said.

What started with the sale of a few chain saws out of Don Crader's trunk was built into "one of the largest STIHL sales and distribution organizations in the world," but Don measured success by his family, along with his relationships with his employees and the community, Riley said.

Crader was a member of The Gideons International, a supporter of the Southeast Missouri University Foundation and a member of the Harmony Congregational Methodist Church.

Through his business, Crader was able to support and foster success with thousands of small businesses, Riley said, and he always will remember Crader as a gentleman of unwavering integrity.

"While he built a significant enterprise, I think he measured success in life by what he gave and plowed back into helping others," Riley said. "He was a man of faith, and viewed his life as an incredible blessing and privilege -- he loved his country, he loved the land and people. Most of all he loved his family. I was blessed to know him."

Amity Shedd      Southeast Missourian     http://www.semissourian.com/ 

Briggs and Stratton Event in Poplar Bluff, MO, Celebrates $8M Phase 1 Milestone

POPLAR BLUFF, Mo. – February 21 -- Corporate visitors, a luncheon, plant tours and a ribbon cutting ceremony highlighted the celebration marking the completion of the first phase of the $36 million investment Briggs and Stratton Corporation is making in its small engines manufacturing plant in Poplar Bluff, Mo.

The $8 million Phase I project involved extensive remodeling and the moving of machines from the west production facility into the main plant.

"Wow! One word sums it up. It is really remarkable to see what you folks have done," said Todd Teske, president, chairman and chief executive officer at Briggs and Stratton's corporate headquarters in Milwaukee, Wis. "All your hard work was really worth it."

Employees wore T-shirts with the words, "I survived the remodel 2014."

After touring the plant, Teske said he was "very pleased with what this place has become and what it will become in the future" when the production of two new engines starts over the next two years.

"I'm proud of all of you for all your hard work," Teske said. "This plant is one of our shining stars."

Briggs and Stratton also is celebrating the 25th anniversary of its plant in the Poplar Bluff Industrial Park.

"We are celebrating our 25th year here and we are looking forward to a long and bright future in Poplar Bluff," said Mark Melloy, the plant manager.

Teske talked with plant and community leaders during the luncheon and to all the employees in the afternoon.

He also showed a video touting new innovations and new products, including a new engine that is 60 percent quieter and a lawnmower with collapsing handles that can be hung on the wall.

"It takes up 70 percent less floor space in a garage," Teske said.

He also thanked community leaders for their support of Briggs and Stratton.

Community leaders attending the luncheon were Mayor Ed DeGaris; Steve Halter, president of the Greater Poplar Bluff Area Chamber of Commerce;, state Rep. Todd Richardson; Dr. Devin Stephenson, president of Three Rivers College and chamber board chairman; and Dr. Wesley Payne, TRC vice president of learning.

Teske said Briggs and Stratton has been spending a lot of money on training.

"We have been training a lot of people," Teske said. "Our people need a different skill set now."

While discussing domestic and foreign markets, Teske expects to continue to see a recovery from two years ago when sales were down due to the drought. He said the U.S. market was up 3 percent last year and he is hoping for a 4-6 percent growth this year depending on the weather.

Chamber members conducted a ribbon cutting ceremony under a new red banner prior to touring the plant.

During the remodeling project, some interior walls were removed to create more production space and re-arrange the production lines to increase the plant's efficiency.

Now the Briggs workers are able to expand production in less space.

Production space has decreased from 410,000 square feet to 310,000 square feet, according to Melloy.

"The 100,000-square foot west building will now be used for a warehouse," Melloy said.

Briggs and Stratton has added 200 employees over the past nearly two years and now has 1,050.

Joe Wright, senior vice president of Briggs and Stratton and president of the Engine Products Group, spoke briefly.

"I know how hard each of you has worked. Don't let up," Wright said. "We have a long way yet to go. We have to carry on to the finish line and make sure we do it right."

Jesse Sumrall, technical services manager, and Marcus Braddock, the new production control manager, led one of the tour groups.

The starting point was large stacks of 2,500-pound aluminum blocks, which are melted. The molten aluminum flows to 25 die cast machines that make the parts for the small engines.

He and Braddock, who recently moved to Poplar Bluff from a Toyota plant in Mississippi, explained how the seven machine lines and the two assembly lines have been changed to improve the plant's efficiency.

David Silverberg           http://www.dailystatesman.com/

The Toro Company Reports First Quarter Results

• First quarter sales grow to $446 million driven by strong demand for snow products
• Net earnings per share of $0.44 delivered for the quarter
• Company well-positioned for primary selling season with innovative new product offerings

BLOOMINGTON, MN.-- Feb. 20 -- The Toro Company today reported net earnings of $25.9 million, or $0.44 per share, on net sales of $446 million for its fiscal 2014 first quarter ended January 31, 2014. In the comparable fiscal 2013 period, the company delivered net earnings of $31.4 million, or $0.53 per share, on net sales of $444.7 million.

“Significant snowfall across key North American markets this winter season spurred retail demand for our snow products—helping to drive sales for the quarter and providing a solid start to our 2014 fiscal year,” said Michael J. Hoffman, Toro’s chairman and chief executive officer.

“The combination of more abundant snow conditions, stronger international demand and solid execution by our team helped us to temper the challenging year-over-year quarterly comparisons we faced due to the Tier 4 diesel engine transition that accelerated sales of large turf equipment into our first quarter last year. In addition, we finished our first quarter more favorably situated in terms of field inventory levels as compared to last year, considering that pre-Tier 4 equipment sales last year went into our channel while snow products sold this year moved all the way through to end-user customers.”

“Looking ahead to our primary selling season, we are well-positioned across our businesses to drive retail sales and increase our market share. Golf course development and renovations continue to progress and customers and channel partners alike are excited about our innovative new equipment and irrigation offerings, including those featured at the recent Golf Industry Show—the Sand Pro® zero turn mechanical bunker rake, the Multi Pro® advanced spraying systems, and the INFINITY™ golf sprinklers with unique SMART ACCESS™ to internal components.

Landscape contractor equipment sales are poised to benefit from the additional revenues generated by contractors this winter, as well as the increased demand we expect for our zero turn radius mowers featuring new electronic fuel injection and onboard intelligence technologies. Global food demand and increased water use restrictions continue to drive the need for more efficient irrigation solutions for agriculture, including our new Neptune® thin wall drip line with flat emitter technology.

“Although we are optimistic, it is early in our fiscal year, our peak selling season is still in front of us and we remain mindful of the challenges we could face if we encounter unfavorable swings in economic or weather conditions. As such, we will continue to focus on the things we can control—product innovation, customer service, and market execution—as well as our Destination 2014 goals of driving revenue growth and further improving productivity.”

The company now expects 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 second quarter, the company expects net earnings per share to be about $1.45 to $1.50.

SEGMENT RESULTS

Professional

Professional segment net sales for the first quarter totaled $295.5 million, down 10.2 percent from the same period last year. This decrease primarily was attributable to strong channel demand in the first quarter of last fiscal year that was not repeated this year for large turf equipment subject to the Tier 4 diesel engine emission requirements that began phasing in for products manufactured after January 1, 2013.

Sales benefitted from pre-season shipments of landscape maintenance equipment, including our zero turn radius products with electronic fuel injection and onboard intelligence technologies, in anticipation of retail demand. Rental and construction equipment sales grew on increased demand for our products, including recently acquired products newly introduced under the Toro brand. Global micro-irrigation sales increased with continued demand for more efficient irrigation solutions for agriculture. Worldwide golf irrigation sales benefitted as customers continued to select our innovative system offerings for new course projects and existing course renovations.

Professional segment earnings for the first quarter totaled $47.5 million, down 21.9 percent from the same period last year.

Residential

Residential segment net sales for the first quarter totaled $147.6 million, up 22.0 percent from the same period last year. This increase primarily was driven by retail demand for our snow products due to significant snowfall across key North American markets this winter season.

Sales also benefitted from pre-season shipments of domestic residential zero turn radius mowers in anticipation of the continuing transition of consumers to this mowing platform, as well as additional shipments of handheld solutions. Offsetting such increases were unfavorable currency exchange rates, primarily relating to the Australian dollar versus the U.S. dollar.

Residential segment earnings for the first quarter totaled $18.1 million, up 49.2 percent from the same period last year.

OPERATING RESULTS

Gross margin for the first quarter was 36.7 percent, a decrease of 60 basis points compared to the same period last year, primarily due to product mix but also affected by unfavorable currency exchange rates and slightly higher commodity costs, somewhat offset by realized pricing.

Selling, general and administrative (SG&A) expense as a percent of sales for the first quarter was 27.6 percent, an increase of 70 basis points compared to the same period last year, primarily due to higher administrative expense, including health care costs, warranty expense, and incremental expense relating to our recently completed China micro-irrigation acquisition, somewhat offset by lower warehousing expense.

First quarter operating earnings as a percent of sales were 9.1% compared to 10.4% in the same period last year.

First quarter interest expense was down 11.7 percent to $3.8 million compared to the same period last year.

The effective tax rate for the first quarter was 33.2 percent compared with 27.7 percent in the same period last year when the company benefited from the retroactive reinstatement of the Federal Research and Engineering Tax Credit.

Accounts receivable at the end of the first quarter totaled $199.8 million, up 10.8 percent from the same period last year. Net inventories were $304.9 million, down 9.2 percent from the same period last year. Trade payables were $192.7 million, up 14.5 percent compared to the same period last 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. More information is available at www.thetorocompany.com.