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Posted on Mon, Mar 12, 2012 : 4:39 p.m.

Tecumseh Products warns of possible cuts after $73.2 million loss

By Nathan Bomey

Pittsfield Township-based manufacturer Tecumseh Products warned today that it is considering additional cuts after posting a net loss of $73.2 million in 2011.

Tecumseh Products, which makes parts for air conditioners and other refrigeration devices, is reporting that its net loss rose 27.9 percent from 2010 to 2011, leading to concerns that the company is too big.


Tecumseh Products CEO Jim Connor

Photo courtesy of Tecumseh Products

"In 2011, we implemented a number of initiatives to reduce overhead costs that included reducing headcount," CEO Jim Connor said in a statement. "However, these actions alone were not sufficient to offset the lower sales, and additional restructuring actions may be necessary. We are undertaking a comprehensive review of our company, including our product portfolio, market position, overall competitive positioning, and manufacturing footprint."

The latest loss comes during a protracted period of disappointing sales for Tecumseh Products, which posted a loss of $56.8 million in 2010 and $93.4 million in 2009. The company's fourth-quarter loss in 2011 was $34.1 million.

The company's net sales also fell 7.4 percent to $864.4 million.

Connor, who became CEO in July after the previous executive exited in the midst of a poor financial performance, attributed the tough 2011 to "higher raw material costs, lower volumes and unfavorable changes in mix as a result of weak demand in the second half of the year."

The company said sales of compressors for commercial refrigeration and aftermarket devices fell 5.4 percent. That segment accounts for 58 percent of its total sales.

One positive sign for Tecumseh Products is sales increases in Latin America, where air conditioning is becoming more common in the home.

Tecumseh Products had about 7,300 employees as of July.

Contact's Nathan Bomey at (734) 623-2587 or You can also follow him on Twitter or subscribe to's newsletters.


David Muzzatti

Tue, Mar 13, 2012 : 5:16 p.m.

It has been said that the best road to progress is freedom's road. It's not. The road to progress is paved with money. If you don't have it, all the stand-up people in your business won't matter. You could have paid all your bills on time for decades but if all of a sudden you find yourself with a $72-million loss??? I'm sure the executives at Tecumseh understand all the economic obstacles coming in the next few months & well into 2013 ($5.00/gallon diesel fuel, expiration of the Bush tax cuts, tax increases under Obamacare, the highest corporate tax rates in the industrialized world). Alas, I'm a North American union manufacturer. What do I know?


Tue, Mar 13, 2012 : 8:44 a.m.

It sounds like that move to Ann Arbor was pointless.


Tue, Mar 13, 2012 : 2:15 p.m.

Especially considering they did not move to A2, but to Pittsfield Twp.


Tue, Mar 13, 2012 : 12:27 a.m.

Disappointing news for sure. I secured a contract for transportation of their freight with the company I am employed with about a year ago, the negotiations were very tough but fair. The folks at Tecumseh Products are stand-up , honest and I enjoy working for them. They represent the best of what anyone would want to see in the business world. They pay their bills on time and are a pleasure to work with. I am hopeful they will get things turned around very quickly. Go Green Go White