Financial Results For: ASV, Tecumseh, Hines, Scotts, Andersons

ASV Record 2nd Quarter Reflects Rise In Net Sales

GRAND RAPIDS, Minn. - All-season, track-drive vehicle manufacturer ASV Inc. reported net sales for the second quarter of 2001 increased 17 percent to more than $14.2 million, the highest quarterly net sales figure in the company's history, compared with $12.1 million for the same period in 2000. Due in part to ASV’s continued investment in research and development, net earnings totaled $90,774, or $.01 per share, for the second quarter of 2001 compared with $599,308, or $.06 per share, for the second quarter of 2000.

For the six months ended June 30, 2001, net sales also increased 17 percent to $27.2 million compared with $23.3 million for the same period in 2000. Net earnings were $294,744 for the six months ended June 30, 2001 compared with $1.0 million for the same period in 2000; and earnings per share were $.03 in 2001 compared with $.10 for 2000.

"Second quarter was a landmark as we delivered our first shipments of undercarriages to Caterpillar Inc. for use in the first two models of our jointly-developed Multi-Terrain Loaders™ (MTLs)," said Gary Lemke, president of ASV.

ASV and Caterpillar announced in October 2000 they would jointly develop and manufacture MTLs, a new product line of Caterpillar-branded rubber track compact loaders. The MTL product line, which is expected to include five new models, features Caterpillar's skid steer loader technology and ASV's Maximum Traction Support System™ rubber track undercarriage.

"Overall, our gross profit percentage for the second quarter of 2001 decreased due to a greater concentration of sales of the Polaris ASL-300 model to Polaris Industries Inc., fewer sales of the Posi-Track model 4810 and initial start up costs related to the MTL undercarriages," said Lemke.

ASV announced in January it had entered into a licensing agreement with Polaris to build a rubber track, all-surface utility loader similar to ASV's new RC-30 under the Polaris nameplate.

Tecumseh Earnings Fall, Restructuring Steps Likely

TECUMSEH, Mich. - Tecumseh Products Co., which makes engines for lawn equipment and air conditioners, reported lower second-quarter earnings, due primarily to a decline in sales and profits in its two major businesses, and said further restructuring steps were "highly likely.'"

The Tecumseh, Mich.-based company reported second-quarter net income of $17.5 million, or $0.94 per share, compared with $28.5 million, or $1.47 per share, a year ago.

Results were hurt by the settlement of a $1.3 million foreign tax claim, the company said.

Net sales fell to $382.0 million from $466.4 million a year ago. Sales of compressor products fell to $236.1 million from $266.1 million, while sales of engine and power train products fell to $109.2 million from $162.4 million.

The company said it expects demand for some engine and power train products to remain weak. As a result, consolidated second-half earnings before special charges are expected to be about flat with those of the second half of 2000. Tecumseh recently offered an early retirement incentive package to approximately 20 percent of the North American salaried employees in both the Compressor Products Group and Engine & Power Train Products Group and said it plans to take a nonrecurring third-quarter charge related to employees taking early retirement.

The company said it is "highly likely" it will undertake further restructuring and/or realignment actions to address capacity issues and improve its cost structure and competitive position.

Hines Reports Second Quarter Results

IRVINE, Calif. - Commercial nursery operator Hines Horticulture Inc. reported increases in net sales and operating results for the second quarter and six months ended June 30, 2001.

Strong sales by the green goods business during the first four months of 2001 enabled Hines to offset challenging market conditions in May and June. Hence, while net sales for the second quarter increased by more than 3 percent from a year earlier to $204.8 million, sales for the six months ended June 30 increased by 6.5 percent to $305.5 million. Also, while sales growth reported for previous periods has been fueled in part by acquisitions, sales performance for the second quarter is reported on a comparable basis.

Net income for the second quarter was $22.1 million, or $1.00 per diluted share, versus $23.1 million, or $1.05 per diluted share, a year earlier.

Sales growth was led by the green goods businesses, which grew by approximately 6 percent for the quarter and 11 percent for the six-month period. Hines said its strong early sales performance this year proved to be a significant competitive advantage in a challenging retail environment for the lawn and garden industry, which has been affected by a soft economy and increasingly aggressive inventory management programs by customers due to unfavorable weather conditions in May and June.

Net sales for the six months ended June 30 reached $305.5 million, up 6.5 percent from $287.0 million last year. Net income for the period was $22.1 million, or $1.00 per diluted share vs. net income of $25.4 million, or $1.15 per diluted share in 2000.

"Our recently implemented acquisition strategy of building a geographically diversified portfolio of nurseries has paid substantial dividends this year and should continue to do so as we look to the future," said Stephen Thigpen, Hines president and CEO.

Scotts Reports Third Quarter Results Up 8 Percent

COLUMBUS, Ohio - The Scotts Co., a supplier of professional horticulture and consumer products for lawn and garden care, reported that diluted earnings per share for the third quarter ended June 30, 2001, were $1.49 including restructuring and other charges. Excluding the impact of restructuring and other charges, diluted earnings per share were up 8 percent to $1.91 compared to last year's third quarter diluted earnings per share of $1.77. Cash earnings per diluted share, defined as net earnings before restructuring and other charges plus amortization, for the quarter grew 7 percent to $2.11.

Restructuring and other charges of $16.0 million include the relocation and closure of certain facilities in the U.S. and the relocation of Scotts' corporate headquarters back to Marysville, Ohio.

Net sales for the third quarter ended June 30, 2001, grew 5 percent to $610.3 million, compared with last year's third quarter net sales of $581.4 million. Excluding the impact of foreign exchange rates, net sales for the third quarter were up 6 percent.

"Scotts' highly effective consumer-pull marketing strategy and its strong brand portfolio have enabled us to continue to grow earnings," said James Hagedorn, president and CEO of Scotts. "While the lawn and garden markets were weak, we improved our overall market share. This strengthened market position, together with the measures we are undertaking to improve return on invested capital, will ensure that we are poised for continued profitable growth."

Global professional sales for the third quarter were $45.9 million, representing a 2 percent increase over last year's third quarter of $44.9 million. Excluding foreign currency impact, sales increased 6 percent. Global Professional sales in the first nine months of fiscal year 2001 increased 3 percent to $138.6 million compared with the prior year comparable period sales of $134.7 million.

The Andersons Reports Higher 2nd Qtr. Earnings

MAUMEE, Ohio - Turf care product manufacturer The Andersons Inc. announced net income of $7.3 million, or $0.99 per diluted share, for the second quarter of 2001. In the comparable period last year, the company earned $6.7 million, or $0.89 per diluted share. Total revenues of $275.2 million were $12.1 million, or 4.6 percent, higher than the $263.1 million generated in the second quarter of 2000.

Net income for the first six months of the year was $6.5 million, or $0.88 per diluted share, with revenues at $495.5 million. Net income for the first half of 2000 amounted to $7.9 million, or $1.04 per diluted share, on revenues of $467.7 million. Excluding some accounting items, year-to-date net income was $6.4 million, or $0.87 a share, this year, compared to $7.3 million, or $0.96 a share, in 2000.

The company’s processing group, which manufactures turf and ornamental plant fertilizer and control products, had higher revenues during the period because of an acquisition made last year. However, the group's operating results for the quarter and first six months were down. The consumer lawn industry was influenced negatively this year by several factors - higher raw material prices, general economic uncertainty and unusual weather patterns in several regions of the U.S. this spring that curtailed lawn care activities. At the same time, a downturn in the number of golf rounds played has caused golf course owners to reduce their costs wherever possible, including purchases of fertilizer and other turf care products.

"Several of our businesses have a strong seasonal orientation that makes the second quarter a key period for The Andersons," explained Mike Anderson, president and CEO. "Frequently, the lion's share of our full-year income is generated during these three months. Our biggest challenge is the double whammy the lawn business is experiencing this year with extremely tough economic circumstances in both the professional and consumer industry segments."