Highlights:

• Third quarter fiscal 2012 consolidated net sales were $720.1 million or comparable to third quarter fiscal 2011 consolidated net sales of $720.3 million.
• Third quarter fiscal 2012 adjusted consolidated net income of $49.5 million, or $0.99 per diluted share, excluding a $9.6 million after restructuring tax charge, or $0.19 per diluted share, related to previously announced restructuring actions. Including restructuring charges, net income of $39.9 million or $0.80 per diluted share.
• Products Group to phase out lawn and garden product offerings to national mass retailers. Engines Group to continue to support this channel with OEMs. Products Group focus will be on dealers and regional retailers for lawn and garden products.
• Auburn plant reconfigured through move of horizontal shaft engines off-shore.
• Salaried workforce intended to be reduced by 10% based on above actions and reduced infrastructure needs given market levels.
• Total annualized pre-tax savings related to all announced restructuring actions are estimated to exceed $40 million by fiscal 2014.

Consolidated results:

Consolidated net sales for the third quarter of fiscal 2012 were $720.1 million, a decrease of $0.2 million or comparable to the same period a year ago. Fiscal 2012 third quarter consolidated net income was $39.9 million or $0.80 per diluted share. The third quarter of fiscal 2011 consolidated net income was $51.5 million or $1.02 per diluted share.

Included in consolidated net income for the third quarter of fiscal 2012 were pre-tax charges of $19.8 million ($9.6 million after tax or $0.19 per diluted share) associated with the previously announced restructuring actions to close the Ostrava, Czech Republic, and Newbern, Tenn., manufacturing facilities and reconfigure operations of the engine plant in Poplar Bluff, Mo. After considering the impact of the restructuring charges, adjusted consolidated net income for the third quarter of fiscal 2012 was $49.5 million or $0.99 per diluted share, which was lower by $2.0 million or $0.03 per diluted share compared to third quarter fiscal 2011 consolidated net income of $51.5 million or $1.02 per diluted share.