Tecumseh Forecasts Lowered 2Q Figures

Tecumseh Products Company has announced expectations of lower-than-anticipated earnings for the second quarter. The manufacturer of engines and transmissions for the outdoor power equipment industry said poor weather and rising material costs contributed to the change.

Second-quarter figures have been influenced by a variety of unfavorable factors, including unseasonably cool and wet weather, soft demand, upward pressure on raw material costs, competitive pricing circumstances and the effects of a weakened U.S. economy. Weather conditions have had the most impact on Tecumseh’s collection of business segments.

Specifically, the company’s engine and power train group was negatively impacted by cool and wet spring weather. Although engine shipments early in the quarter were strong, a number of orders were either cancelled or delayed during May and June.