Results of Operations
Comparison of the Second Quarter of 2009 to the Second Quarter of 2008
Net Sales:

                                         Quarter Ended
                                           June 30,
                                                                             %
          Segment                      2009        2008       Change       Change

          Lawn & Garden               $  42.8     $  62.9     $ (20.1 )        (32 )%
          Material Handling           $  65.5     $  61.6     $   3.9            6 %
          Distribution                $  40.2     $  49.2     $  (9.0 )        (18 )%
          Auto & Custom               $  29.0     $  47.8     $ (18.8 )        (39 )%
          Intra-segment elimination   $  (4.3 )   $  (6.9 )   $   2.6            3 %

          TOTAL                       $ 173.2     $ 214.6     $ (41.4 )        (19 )%

Net sales in the second 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 and a decrease of $5.2 million from the adverse effect of foreign currency translation, primarily for the Canadian dollar.
Net sales in the Lawn and Garden segment in the second quarter of 2009 were down $20.1 million or 32% compared to the second quarter of 2008. Approximately $3.5 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 in this segment were down $16.6 million on volume declines of $18.4 million which were partially offset by the impact of selling prices.
In the Material Handling segment, sales increased $3.9 million or 6% in the second quarter of 2009 compared to the same quarter in 2008. Sales increased 10% due to higher volumes but were offset by lower selling prices and the unfavorable impact of the exchange rates for the Brazilian Real.
Net sales in the Distribution segment decreased $9.0 million or 18% in the second quarter of 2009 compared to the corresponding quarter of 2008. The sales decline was primarily volume related as a weak economy and continuing reductions in miles driven resulted in slow demand for both tire and vehicle service. These factors reduced demand for the Company's tire service and retread consumable supplies and sales of equipment continued to be weak as tire dealers, auto dealers, fleet and other customers reduced capital purchases.
In the Auto and Custom segment, net sales in the second quarter of 2009 decreased $18.8 million, or 39% 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 second quarter of 2009.

Cost of Sales & Gross Profit:

                                                         Quarter Ended
                                                           June 30,
             Cost of Sales and Gross Profit            2009        2008
             Cost of sales                           $ 131.6     $ 165.2
             Gross profit                            $  41.6     $  49.4
             Gross profit as a percentage of sales      24.0 %      23.0 %

Gross profit margin increased to 24% in the quarter ended June 30, 2009 compared with 23% in the prior year primarily due to lower raw material costs as prices for plastic resins were, on average, approximately 40% lower in the second quarter of 2009 compared to the second quarter of 2008. In addition, the liquidation of inventories valued at LIFO cost reduced cost of sales by approximately $1.2 million. The impact of lower raw material costs more than offset the

                                                      Quarter Ended
                                                        June 30,
          SG&A Expenses                              2009       2008      Change
          SG&A expenses                            $ 41.9     $ 42.0     $ (0.1 )
          SG&A expenses as a percentage of sales     24.2 %     19.6 %      4.6

Selling, general and administrative expenses for the quarter ended June 30, 2009 were $41.9 million, approximately the same as the prior year. Expenses in 2009 include unusual charges of approximately $6.0 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 $1.4 million of unusual charges primarily related to severance and executive retirement plan expenses. Excluding the unusual charges, SG&A expenses in the quarter ended 2009 declined $4.7 million compared to the prior year due to lower freight and selling expenses from decreased sales volumes and benefits from restructuring.
Impairment Charges from Continuing Operations:
Impairment charges were $0.9 million for the three months ended June 30, 2009. The charges were primarily related to certain property, plant, and equipment in the Company's Lawn and Garden business. Interest Expense from Continuing Operations:

                                         Quarter Ended
                                           June 30,
                                                                             %
            Net Interest Expense       2009        2008       Change       Change
            Net interest expense     $   2.1     $   2.8     $  (0.7 )       (25 )%
            Outstanding borrowings   $ 160.8     $ 207.5     $ (46.7 )     (22.5 )%
            Average borrowing rate      5.08 %      5.40 %     (0.32 )      (6.0 )%

Net interest expense was $2.1 million for three months ended June 30, 2009, a decrease of 25% compared to $2.8 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
                                           June 30,
                                                                            %
             Segment                   2009        2008      Change      Change
             Lawn & Garden            $   1.2     $ (1.1 )   $   2.3         201 %
             Material Handling        $   3.6     $  4.1     $  (0.5 )       (13 )%
             Distribution             $   2.5     $  5.6     $  (3.1 )       (56 )%
             Auto & Custom            $  (0.4 )   $  3.6     $  (4.0 )      (111 )%
             Corporate and interest   $ (10.2 )   $ (7.6 )   $  (2.6 )       (33 )%

             TOTAL                    $  (3.3 )   $  4.6     $  (7.9 )      (172 )%

Income before taxes for the quarter ended June 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 $7.4 million. These factors were partially offset by a reduction in certain raw material costs.

Quarter Ended June 30, Consolidated Income Taxes 2009 2008 Income (loss) before taxes $ (3.3 ) $ 4.6 Income tax (benefit) expense (1.9 ) $ 1.7 Effective tax rate (57.9 )% 37.5 %

The effective tax rate for the second quarter of 2009 was 57.9% compared to 37.5% in the prior year. The higher effective tax rate for the quarter ended June 30, 2009 reflects foreign tax rate differences and approximately $0.1 million of adjustments from the reduction of FIN 48 liabilities. In addition, during the three months ended June 30, 2009, the Company made an adjustment to record previously unrecognized deferred tax assets. The adjustment increased the income tax benefit and deferred tax assets by approximately $0.4 million. The Company determined that this adjustment was immaterial to its current and prior period financial statements.
Comparison of the Six Months Ended June 30, 2009 to the Six Months Ended June 30, 2008
Net Sales from Continuing Operations:

                                       Six Months Ended
                                           June 30,
                                                                               %
         Segment                       2009         2008        Change       Change
         Lawn & Garden               $   119.2     $ 155.3     $  (36.1 )        (23 )%
         Material Handling           $   123.6     $ 134.3     $  (10.7 )         (8 )%
         Distribution                $    76.5     $  93.7     $  (17.2 )        (18 )%
         Auto & Custom               $    56.2     $  94.2     $  (38.0 )        (40 )%
         Intra-segment elimination   $   (12.2 )   $ (13.5 )   $    1.3           10 %

         TOTAL                       $   363.3     $ 464.0     $ (100.7 )        (22 )%

Net sales for the six months ended June 30, 2009 were adversely affected by the weakness in the general economy, which impacted all segments of the Company's business and all markets in which the Company sells. The sales decline is primarily due to lower sales volumes and a decrease of $15.2 million from the adverse effect of foreign currency translation primarily for the Canadian dollar.
Net sales in the Lawn and Garden segment for the six months ended June 30, 2009 were down $36.1 million or 23% compared to the six months ended June 30, 2008. Approximately $12.3 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 $23.8 million. Volume declines of $29.6 million were partially offset by increases of $5.8 million from higher selling prices.
In the Material Handling segment, sales decreased $11.7 million or 9% for the six months ended June 30, 2009 compared to the same period in 2008. Sales were down $4.2 million due to the impact of lower volumes, $5.2 million from lower selling prices and the unfavorable impact from foreign currency translation.
Net sales in the Distribution segment decreased $17.2 million or 18% for the six months ended June 30, 2009 compared to 2008. Sales were down primarily due to lower unit volumes 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.
In the Auto and Custom segment, net sales for the six months ended June 30, 2009 decreased $38.0 million, or 40% 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 six months of 2009.

Six Months Ended June 30, Cost of Sales and Gross Profit 2009 2008 Cost of sales $ 266.4 $ 354.6 Gross profit $ 96.8 $ 109.4 Gross profit as a percentage of sales 26.7 % 23.6 %

Gross profit margin increased to 26.7% for the six months ended June 30, 2009 compared with 23.6% in the prior year primarily due to lower raw material costs as prices for plastic resins were, on average, approximately 30% lower in the first six 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 $2.6 million in the six months ended June 30, 2009. The impact of lower raw material costs more than offset higher manufacturing costs due to a reduction in capacity utilization and increased unabsorbed overhead. Selling, General and Administrative (SG&A) Expenses from Continuing Operations:

                                                     Six Months Ended
                                                         June 30,
         SG&A Expenses                               2009         2008      Change
         SG&A expenses                             $  85.1      $ 85.2     $ (0.1 )
         SG&A expenses as a percentage of sales       23.4 %      18.3 %     (5.1 )

Selling, general and administrative expenses for the six months ended June 30, 2009 were $85.1 million, approximately the same as the prior year. Expenses in 2009 include unusual charges of approximately $11.0 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 $1.4 million of unusual charges, primarily related to severance and an executive retirement plan. Excluding the unusual charges, SG&A expenses in the six months ended June 30, 2009 declined $9.7 million compared to the prior year due to lower freight and selling expenses from decreased sales volumes and the benefits from cost control and restructuring initiatives.
Impairment Charges from Continuing Operations:
For the six months ended June 30, 2009, the Company continued the implementation of its restructuring plan in the Lawn and Garden business and completed the closure of its Fostoria, Ohio manufacturing facility in its Auto and Custom business. In connection with these activities, the Company recorded impairment charges of $2.2 million primarily related to the disposal of certain property, plant, and equipment and the estimated fair value of its facility in Fostoria, Ohio.
Interest Expense from Continuing Operations:

                                        Six Months Ended
                                            June 30,
                                                                              %
            Net Interest Expense        2009        2008       Change       Change

            Interest expense          $   4.6     $   5.8     $   1.2       (20.7 )%
            Outstanding borrowings    $ 160.8     $ 207.5     $ (46.7 )     (22.5 )%
            Average borrowing rate       5.21 %      5.82 %     (0.61 )     (10.5 )%

Net interest expense was $4.6 million for the six months ended June 30, 2009, a decrease of 20.7% compared to $5.8 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.

Six Months Ended June 30, % Segment 2009 2008 Change Change Lawn & Garden $ 12.8 $ 6.9 $ 5.9 85 % Material Handling $ 10.2 $ 12.7 $ (2.5 ) (20 )% Distribution $ 4.7 $ 9.0 $ (4.3 ) (47 )% Auto & Custom $ (3.3 ) $ 5.1 $ (8.4 ) (166 )% Corporate and interest $ (19.4 ) $ (15.4 ) $ (4.1 ) (26 )%

Income before taxes for the six months ended June 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 $13.6 million. These factors were partially offset by a reduction in certain raw material costs. Income Taxes: