Results of Operations
Comparison of the Third Quarter of 2009 to the Third Quarter of 2008
Net Sales from Continuing Operations:

                                         Quarter Ended
                                         September 30,                       %
          Segment                      2009        2008       Change       Change
          Lawn & Garden               $  40.8     $  60.5     $ (19.7 )        (33 )%
          Material Handling           $  62.8     $  66.3     $  (3.5 )         (5 )%
          Distribution                $  43.3     $  48.7     $  (5.4 )        (11 )%
          Auto & Custom               $  23.4     $  30.6     $  (7.2 )        (23 )%
          Intra-segment elimination   $  (4.9 )   $  (6.2 )   $   1.3           20 %

          TOTAL                       $ 165.4     $ 199.9     $ (34.5 )        (17 )%

Net sales in the third quarter of 2009 were adversely affected by the weakness in the general economy, which impacted all markets in which the Company sells. The sales decline is primarily due to lower sales volumes.
Net sales in the Lawn and Garden segment in the third quarter of 2009 were down $19.7 million or 33% compared to the third quarter of 2008. Sales in this segment were down as a result of volume declines of $15.0 million, the unfavorable impact of selling prices of $3.8 million and foreign currency translation of the Canadian dollar.
In the Material Handling segment, sales decreased $3.5 million or 5% in the third quarter of 2009 compared to the same quarter in 2008. The unfavorable impact of $3.7 million in selling prices and $0.6 million from foreign currency translation offset increases in sales volume in the third quarter.
Net sales in the Distribution segment decreased $5.4 million or 11% in the third quarter of 2009 compared to the corresponding quarter of 2008. Sales were down primarily due to lower unit volumes of $3.7 million from softer sales of replacement tires and the impact of a weak economy which reduced miles driven. These factors reduced demand for the Company's tire service and retread consumable supplies. In addition, sales of equipment in the Distribution segment continued to be weak as tire dealers, auto dealers, fleet and other customers reduced capital purchases. Lower selling prices and a change in the mix of products sold also contributed to the decrease in sales quarter over quarter. In the Auto and Custom segment, net sales in the third quarter of 2009 decreased $7.2 million, or 23% compared to the prior year. The decrease is due to significant volume declines in the automotive, heavy truck, recreational vehicle and marine markets in the third quarter of 2009. Cost of Sales & Gross Profit from Continuing Operations:

                                                          Quarter Ended
                                                          September 30,
           Cost of Sales and Gross Profit               2009        2008
           Cost of sales                               $ 128.9     $ 153.1
           Gross profit                                $  36.5     $  46.7
           Gross profit as a percentage of net sales      22.1 %      23.4 %

Gross profit margin decreased to 22.1% in the quarter ended September 30, 2009 compared with 23.4% in the prior year. A reduction in capacity utilization and a resulting increase in unabsorbed overhead more than offset lower raw material prices. In addition, the liquidation of inventories valued at LIFO cost reduced cost of sales by approximately $0.6 million.

Quarter Ended September 30, SG&A Expenses 2009 2008 Change SG&A expenses $ 34.4 $ 40.9 $ (6.5 ) SG&A expenses as a percentage of sales 20.8 % 20.5 % 0.3

Selling, general and administrative expenses for the quarter ended September 30, 2009 were $34.4 million, a decrease of $6.5 million from the same period in the prior year. Expenses in 2009 include charges of approximately $3.9 million for severance, the movement of machinery and equipment, and other restructuring activities of the Lawn and Garden businesses as well as consulting costs related to manufacturing and productivity programs for the Material Handling businesses. SG&A expenses in 2008 included $2.6 million of charges primarily related to consulting and other restructuring expenses in the Lawn and Garden business. Excluding these charges, SG&A expenses in the quarter ended 2009 declined $7.8 million compared to the prior year, including a reduction of $5.1 million from freight and selling expenses due to lower sales volumes and savings from restructuring and cost control initiatives. Impairment Charges from Continuing Operations:
Impairment charges were $1.9 million for the three months ended September 30, 2009. The charges were primarily related to certain property, plant, and equipment in the Company's manufacturing operations as a result of the Company's restructuring plans.
Interest Expense from Continuing Operations:

                                        Quarter Ended
                                        September 30,                       %
            Net Interest Expense      2009        2008       Change      Change
            Net interest expense     $   2.0     $   2.7     $  (0.7 )       (26 )%
            Outstanding borrowings   $ 145.0     $ 199.7     $ (54.7 )     (27.4 )%
            Average borrowing rate      5.09 %      5.25 %     (0.16 )      (3.0 )%

Net interest expense was $2.0 million for three months ended September 30, 2009, a decrease of 26% compared to $2.7 million in the prior year. The reduction in 2009 interest expense was the result of a reduction in average borrowing levels and lower interest rates.
Income (Loss) Before Taxes from Continuing Operations:

                                        Quarter Ended
                                        September 30,                       %
             Segment                   2009        2008      Change      Change
             Lawn & Garden            $  (2.0 )   $ (1.7 )   $  (0.3 )       (17 )%
             Material Handling        $   3.7     $  7.0     $  (3.3 )       (47 )%
             Distribution             $   4.6     $  5.3     $  (0.7 )       (12 )%
             Auto & Custom            $   1.6     $  2.0     $  (0.4 )       (22 )%
             Corporate and interest   $  (9.7 )   $ (9.3 )   $  (0.4 )        (4 )%

             TOTAL                    $  (1.8 )   $  3.1     $  (5.1 )      (156 )%

The loss before taxes of $1.8 million for the quarter ended September 30, 2009 compared with income of $3.1 million in the prior year was primarily due to the impact of significantly lower sales volumes, reduced gross profit and restructuring and impairment charges totaling $5.8 million in 2009 compared to $2.6 million in the prior year.

The tax benefit for the third quarter of 2009 reflects an effective rate of 67% compared to tax expense at an effective rate of 45.9% in the prior year. The higher effective tax rate for the quarter ended September 30, 2009 was due to recording a benefit in the quarter of $0.3 million from a reduction in valuation allowances and a benefit of $0.1 million from a reduction in uncertain tax liabilities.
Comparison of the Nine Months Ended September 30, 2009 to the Nine Months Ended September 30, 2008
Net Sales from Continuing Operations:

                                      Nine Months Ended
                                        September 30,                          %
        Segment                        2009         2008        Change       Change
        Lawn & Garden               $    160.0     $ 215.8     $  (55.8 )        (26 )%
        Material Handling           $    186.4     $ 200.6     $  (14.2 )         (7 )%
        Distribution                $    119.8     $ 142.4     $  (22.6 )        (16 )%
        Auto & Custom               $     64.5     $  95.2     $  (30.7 )        (32 )%
        Intra-segment elimination   $    (17.2 )   $ (19.8 )   $    2.6           13 %

        TOTAL                       $    513.5     $ 634.2     $ (120.7 )        (19 )%

Net sales for the nine months ended September 30, 2009 were adversely affected by the weakness in the general economy, which impacted all segments of the Company's business. The sales decline is primarily due to lower sales volumes and a decrease of $16.8 million from the adverse effect of foreign currency translation primarily for the Canadian dollar.
Net sales in the Lawn and Garden segment for the nine months ended September 30, 2009 were down $55.8 million or 26% compared to the nine months ended September 30, 2008. Approximately $13.2 million of the decrease was due to foreign currency translation from the unfavorable impact of the exchange rates for the Canadian dollar. Excluding the impact of foreign currency translation, sales were down $42.6 million. Volume declines of $43.8 million were partially offset by increases of $1.2 million from higher selling prices.
In the Material Handling segment, sales decreased $14.2 million or 7% for the nine months ended September 30, 2009 compared to the same period in 2008. Sales were down $11.7 million due to lower selling prices and the unfavorable impact from foreign currency translation and $2.5 million related to the impact of lower volumes in 2009.
Net sales in the Distribution segment decreased $22.6 million or 16% for the nine months ended September 30, 2009 compared to 2008. Sales were down primarily due to lower unit volumes of $17.0 million from softer sales of replacement tires and the impact of a weak economy which reduced miles driven. These factors reduced demand for the Company's tire service and retread consumable supplies. In addition, sales of equipment in the Distribution segment continued to be weak as tire dealers, auto dealers, fleet and other customers reduced capital purchases. Lower selling prices also contributed to the balance of the decrease in sales quarter over quarter.
In the Auto and Custom segment, net sales for the nine months ended September 30, 2009 decreased $30.7 million, or 32% compared to the prior year. The decrease is due to significant volume declines in the automotive, heavy truck, recreational vehicle and marine markets in the first nine months of 2009.

Gross profit margin increased to 26.0% for the nine months ended September 30, 2009 compared with 24.0% in the prior year primarily due to lower raw material costs, primarily for plastic resins, in the first nine months of 2009 compared to the same period in 2008. In addition, the liquidation of inventories valued at LIFO cost reduced cost of sales by approximately $3.2 million in the nine months ended September 30, 2009. The impact of lower raw material costs more than offset increased manufacturing expense due to a reduction in capacity utilization and increased unabsorbed overhead.
Selling, General and Administrative (SG&A) Expenses from Continuing Operations:

                                                  Nine Months Ended
                                                    September 30,
       SG&A Expenses                               2009         2008       Change
       SG&A expenses                            $    116.4     $ 122.4     $  (6.0 )
       SG&A expenses as a percentage of sales         22.7 %      19.3 %       3.4

Selling, general and administrative expenses for the nine months ended September 30, 2009 were $116.4 million, a decrease of $6.0 million from the same period in the prior year. Expenses in 2009 include charges of approximately $14.8 million for severance, the movement of machinery and equipment and other restructuring activities of the Lawn and Garden businesses as well as consulting costs related to manufacturing and productivity programs for the Material Handling businesses. SG&A expenses in 2008 included $4.3 million of charges, primarily related to consulting and severance costs in the Company's Lawn and Garden business and other costs for an executive retirement plan. Excluding these charges, SG&A expenses in the nine months ended September 30, 2009 declined $16.5 million compared to the prior year primarily from reduced freight and selling expenses due to lower sales volumes and savings from restructuring and cost control initiatives.
Impairment Charges from Continuing Operations:
For the nine months ended September 30, 2009, the Company continued the implementation of its restructuring plans and productivity programs in its manufacturing businesses. In connection with these activities, the Company recorded impairment charges of $2.4 million related to restructuring its Lawn and Garden business and $1.8 million in the Auto and Custom Segment as a result of closing manufacturing facilities.
Interest Expense from Continuing Operations:

                                      Nine Months Ended
                                        September 30,                         %
           Net Interest Expense        2009         2008       Change      Change
           Interest expense         $      6.5     $   8.4     $   1.9       (22.6 )%
           Outstanding borrowings   $    145.0     $ 199.7     $ (54.7 )     (27.4 )%
           Average borrowing rate         5.16 %      5.62 %     (0.46 )      (8.2 )%

Net interest expense was $6.5 million for the nine months ended September 30, 2009, a decrease of 22.6% compared to $8.4 million in the prior year. The reduction in 2009 interest expense was the result of a reduction in average borrowing levels and lower interest rates.

Income before taxes for the nine months ended September 30, 2009, was lower than the same period in the prior year due to the impact of significantly lower sales volumes and restructuring and impairment charges totaling $19.3 million in 2009 compared to $4.6 million in the prior year. These factors were partially offset by a reduction in certain raw material costs. Income Taxes from Continuing Operations: