The OPEESA OPE-In-The-Know on-line newsletter, one of industry’s top news sources, shows how top suppliers are being affected by the economic downturn. Times are tough all over, as most dealers will agree, with some of industry’s top suppliers making tough decisions in poor markets. The following news items were taken from an edition of OPEESA’s on-line newsletter:
- At Toro Co., Professional segment net sales for the fiscal 2009 second quarter were down 29.2% from the comparable fiscal 2008 period. For the fiscal year to date, professional segment net sales declined 26.4% to $539.7 million. However, residential segment net sales for the fiscal 2009 second quarter were down only 4.7% from 2008. According to the company’s second-quarer report, Toro has adjusted its outlook for fiscal year 2009 and now projects revenues to decline about 18% from fiscal 2008.
- For Deere & Co., sales for the commercial and consumer equipment division declined 24% for both the second quarter and the first half of the year. Full-year sales of the agriculture and turf division are forecast to decrease by about 14%.
- Ariens Co. recently announced a 5% across-the-board pay cut for all employees. Ariens’ Ann Stilp said lawn and garden sales have been slower than expected, and the move was implemented to help avoid layoffs. She added the wage adjustment will be reversed, depending on future financial performance.
- MTD Products recently announced the July closure of its Brownsville, Tenn. plant, which would eliminate 200 full-time and 280 seasonal jobs in that region. Built in 1980 as a Cub Cadet plant, the facility was expanded from 15,000 to 250,000 sq. ft. over the years and was manufacturing several MTD mower brands before the announcement.