Wisconsin Plating Works of Racine Inc., a metal plating and finishing company based in Racine, will soon begin environmental remediation at its facility at 620 Stannard St., home of its Racine Plating division. The 1.67-acre parcel has a 75,000-square-foot manufacturing facility.

About three years ago, Wisconsin Plating Works purchased the assets and equipment of Racine Plating Co., said Jeff Toeppe, vice president of Wisconsin Plating. The company was also prepared to buy Racine Plating's building until it learned of environmental contamination there.

"We always intended to buy the building, but because of the environmental issues we leased it," he said. "We were creative with a land contract and the former owners moved toward the cleanup responsibilities. But they did not have enough resources after the sale (of the company) to do the cleanup."

Wisconsin Plating of Racine was recently awarded a $165,000 state brownfield grant to help pay for soil removal and remediation. Cleanup work will begin in November, Toeppe said, and will be completed by early December. Depending on weather conditions, some landscaping work may need to be finished in the spring.

Wisconsin Plating still plans to purchase the building, but not until two to three years of environmental monitoring has passed, Toeppe said.

"When the DNR gives us a clean bill of health, we will buy out the land contract," he said. "There are building improvements that should be made but we will not do them if we don't own the building. And we're concerned about investing more at the site until we're certain that the environmental issues are resolved."

The company's Racine Plating division has about 25 workers, and about two-thirds of them worked for the company's former owners, Toeppe said. Wisconsin Plating Works' other facility at 1000 12th St. has about 40 employees. The company performs a wide range of metal plating and related services for the auto, agricultural equipment, defense and metal fabrication industries.

Wisconsin Plating Works eventually plans to make some structural improvements to the building on the site, including roof repairs, masonry work, window replacement and other maintenance projects. Other more significant upgrades will not be made until Wisconsin Plating owns the building, Toeppe said.

"There's nothing on the books right now, but we aren't going to put equipment into a building that we don't own," he said.

For more information, visit www.wisplate.com.

Harley faces slower third quarter
Tighter credit markets and slower consumer spending took a toll on Harley-Davidson Inc.'s third quarter. The company posted net income of $166.5 million, or 71 cents per share, down from $265.0 million, or $1.07 per share, for its third quarter 2007.

The Milwaukee motorcycle manufacturer's revenue for the quarter fell to $1.42 billion from $1.54 billion a year earlier.

"In the U.S., dealer retail sales of new Harley-Davidson motorcycles in the quarter were in line with our expectations," said Jim Ziemer, chief executive officer of Harley-Davidson. "Although Harley-Davidson retail motorcycle sales in international markets overall continued to grow double digits in the quarter, unit sales in several European countries slowed more than we anticipated during September as a result of deteriorating economic conditions. We continue to carefully monitor all markets in light of the potential impact of the current economic realities."

For the full year 2008, the company has narrowed its shipment expectations to 303,500 to 306,000 Harley-Davidson motorcycles.

The company has narrowed its expectations for diluted earnings per share for the full year to $3.00 to $3.10 from the prior range of $3.00 to $3.18.

"We also have been able to maintain Harley-Davidson Financial Services' position as a stable, consistent source of financing for dealers and retail customers during these turbulent conditions in the credit markets," Ziemer said. "Prudent management and customer access to credit will continue to be priorities at HDFS … Going forward, we expect the global economy and consumer concerns to continue to create challenges for Harley-Davidson through the end of the year and in 2009. I remain confident about our future as we continue to manage and reinvest in the business."

A.O. Smith's earnings tumble
A.O. Smith Corp., a Milwaukee-based manufacturer of water heaters, reported third quarter net earnings of $21.4 million, or 70 cents per share, down from $24.7 million, or 79 cents per share, in the same period a year ago.

The company's net sales increased to $602.7 million from $553.5 million.

"In the third quarter, we continued to see strength from our commercial and Chinese businesses in spite of the very difficult conditions in the broader economy," said Paul Jones, chairman and chief executive officer. "Also, we generated more than $55 million in operating cash flow during the quarter and reduced our leverage ratio to less than 30 percent of our capital. Based on our strong performance in the third quarter and the confidence in our operating units' ability to manage costs in spite of market volatility, we increased and narrowed our 2008 guidance from our previous estimate of $2.70 to $2.85 per share to earnings of between $2.80 and $2.90 per share."

'Financial turmoil' clips outlook for Briggs & Stratton
Briggs & Stratton Corp. recently posted a fiscal first quarter net loss of $2.0 million, or 4 cents per share, which actually was an improvement from a loss of $20.8 million, or 42 cents per share, in the same period a year ago.

The Milwaukee-based manufacturer of lawn mower engines and generators reported quarterly sales of $458.2 million, up from $367.1 million a year earlier.

The company has expanded its projected range of net income and is now estimating a range from $40 to $50 million or $0.81 to $1.01 per diluted share for the full year. The range reflects the impact of increased portable generator sales in the first quarter that were not in the company's initial projections for the year.

"However, the forecast range now also reflects the risk that the sales of lawn and garden equipment and pressure washers in the spring of 2009 may be weaker than projected. This could occur because the financial turmoil now taking place is significantly affecting consumer confidence and may also lead channel participants (retailers and equipment manufacturers) to review their working capital commitment. The negative influence of either, or both, of these factors could cause the market for our engines and end products to decline greater than others are forecasting at this time," the company stated today.

Storage Battery Systems Inc., (SBS) a Menomonee Falls-based manufacturer of industrial batteries and chargers and related products, has products and systems in manufacturing facilities and big-box stores around the country.

The company’s core products are industrial batteries and chargers used on forklifts, specialty carts and automated electric-powered vehicles commonly used in manufacturing and distribution facilities, said Bill Rubenzer, vice president. SBS’ employees fabricate, assemble and configure large battery banks  and systems inside its 40,000-square-foot facility in Menomonee Falls and a 15,000-square-foot plant near Chicago.

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China's struggle to define itself today is similar to what the United States experienced after its Revolutionary War. The models and dreams America adopted defined us as a people and a nation. How China articulates and presents its new order is as important to China and its people as it is to the rest of the world. Read more in the latest edition of SBT correspondent Einar Tangen's Dispatches From China.

Class action stock lawsuit filed against Oshkosh Corp.
A class action lawsuit has been filed against Oshkosh Corp. with allegations that the company misled investors. The lawsuit was filed in the United States District Court for the Eastern District of Wisconsin on behalf of investors who purchased Oshkosh Corp. stock shares between Nov. 1, 2007 and June 25, 2008.

The suit was filed on behalf of investors by Schiffrin Barroway Topaz & Kessler LLP of Radnor, Pa. The suit alleges that the company failed to disclose a significant decrease in demand for the products of its JLG access-equipment division and "the company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made."

On June 26, Oshkosh Corp. announced it expected to incur a loss of approximately $1.22 to $1.32 per share for the third quarter of fiscal 2008, in contrast to the company's previous earnings per share estimate of $1.40 to $1.50 of income for the quarter. The stock then fell $11.22 per share, or 33.48 percent, to close on June 26, at $22.29 per share, on unusually heavy trading volume.

Johnson Controls projects lower sales in 2009
Johnson Controls Inc. recently projected 2009 sales of $37 billion, about 3 percent less than its 2008 sales.

The Glendale-based company said it expects its diversified business portfolio and its ability to improve its cost structure to partially offset the difficult economic environment with its buildings and power businesses.

The company is forecasting diluted earnings per share of $1.95 to $2.10, approximately 10 to 16 percent lower than 2008, based on its projections of lower global automotive production.

The company said that the assumptions for lower lead prices and a weaker Euro will reduce 2009 sales by approximately $1.7 billion.

"We recognize that we are facing a challenging environment in our global markets," said Stephen Roell, chairman and chief executive officer of Johnson Controls. "At the same time, we are entering fiscal 2009 with record backlogs in our automotive and building efficiency businesses and confidence in our ability to improve our cost structure. Based on what we see today, we believe we can achieve solid financial performance during this volatile economic environment."

Johnson Controls said it plans to benefit in 2009 from its market-leading positions in growth markets, especially China, Eastern Europe and the Middle East.