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  1. #1
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    Default E-One Has New President!

    Marc Gustafson is out and a fedsig guy is in.
    Later.


  2. #2
    MembersZone Subscriber npfd801's Avatar
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    Default

    I'm really not trying to be "smart" here, is this a good or a bad thing?
    "Share your knowledge - it's a way to achieve immortality." - Stolen from Chase Sargent's Buddy to Boss program

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    Quote Originally Posted by npfd801 View Post
    I'm really not trying to be "smart" here, is this a good or a bad thing?
    One would think that when your at rock bottom the only way to go would be up. E-One has been in a downward spiral for so long I'm not sure they can get it turned around. If I were to bet, I'm guessing there is still more to come.

    Link to the press release.
    http://biz.yahoo.com/prnews/070717/aqtu161.html?.v=10

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    Default

    How are they at rock bottom?
    This space for rent

  5. #5
    Forum Member zfdtruckman's Avatar
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    Default

    Here's a link to the press release. I hope the new guy does well. Everyone needs to have some healthy competition.

    http://www.federalsignal.com/pdf/pre...es%20FINAL.pdf

  6. #6
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    Default

    Relatively speaking.....

    If you would ask any Federal Signal execs.....they may not admit it to you but in their eyes - E-One is at rock bottom.

    Look at where they were at 3-4 years ago and where they are now. There is a significant difference.

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    Default

    If the Quest is the best they could come up with, then there in TROUBLE.
    Lead, Follow or Get Out of the Way.

  8. #8
    Forum Member SFD_E73_RET's Avatar
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    Quote Originally Posted by KyleWickman View Post
    How are they at rock bottom?
    Because they will tell you they built 1100 trucks last year but only built 569. They have also lost some big dealers. Other dealers are eating warranty work. And they are buying mid-mount platforms back.

    Just to name a few things.
    Last edited by MurphysFireKC; 07-18-2007 at 03:55 PM.

  9. #9
    Forum Member Firefighter807's Avatar
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    Default

    Content deleted by author.
    Last edited by Firefighter807; 07-08-2009 at 07:17 PM.

  10. #10
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    Default

    What does that have to do with this thread?

  11. #11
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    Talking i couldn't stop myself - sorry

    So do you suppose they are going to start building aerials out of steel now? TL

  12. #12
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    Lightbulb Get Real

    If you work for an ALF dealer and are going to post about another maker,at least get your S@*T straight.
    E-One sold 871 last year down from 1146 the year before. These are the numbers from the dealer awards banquet. They use the overall numbers and the per dealer numbers to spur competition between dealers for bragging rights. They announce each dealers numbers and add them up at the meeting in january, if they were playing with the numbers the dealers would know,and those numbers don't include direct government sales to GSA and non-dealer territories overseas.
    Stay Safe

  13. #13
    Forum Member Rescue101's Avatar
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    Default

    The "new guy" is a "troubleshooter"for lack of a better name.He's taken other divisions that were "failing" and turned them back to profit making.To what cost on the final product I don't know. As far as 807,well he drinks the Koolaide,so you'd have to expect an Oshkosh link. T.C.

  14. #14
    Forum Member SFD_E73_RET's Avatar
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    Quote Originally Posted by gilamonster View Post
    If you work for an ALF dealer and are going to post about another maker,at least get your S@*T straight.
    E-One sold 871 last year down from 1146 the year before. These are the numbers from the dealer awards banquet. They use the overall numbers and the per dealer numbers to spur competition between dealers for bragging rights. They announce each dealers numbers and add them up at the meeting in january, if they were playing with the numbers the dealers would know,and those numbers don't include direct government sales to GSA and non-dealer territories overseas.
    Stay Safe

    Did I mention ALF? Did I put any company down? I'm just stating what I have been told and the obvious facts. My source, like Mr. Gustafson used to work at E-One. I believe his numbers over what you where told at the ra ra koolaid session. I could be wrong, you could be wrong. I don't really care. I like E-ones they keep our shop busy.

  15. #15
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    Default

    Quote Originally Posted by KyleWickman View Post
    How are they at rock bottom?
    Well this sure don't look good.


    Federal Signal plans $10 million in cuts at E-One in Ocala

    BY RICK CUNDIFF
    Star-Banner
    OCALA - Federal Signal, the parent company of Ocala's E-One fire truck plant, missed its earnings target for the second quarter of 2007, and E-One was the reason why.

    Federal Signal CEO Robert Welding laid the blame for the quarterly performance squarely at E-One's doorstep.

    "Our results were adversely impacted by worse than expected results at E-One," Welding said in a conference call for investors and analysts today.

    Federal Signal's Fire Rescue Group, which comprises E-One and the Finland-based Bronto Skylift, is the only one of the corporation's four divisions expected to post an operating loss this year, said Chief Financial Officer Stephanie Kushner.

    Welding and Kushner left no doubt that will mean job cuts at E-One.

    "We have reassessed the priorities for this business and are implementing cost reduction initiatives, including some reduction in our staff functions, which should materially lower the breakeven point for our Ocala operation," Welding said in a press release before the conference call.

    Kushner said during the call that the company will cut $10 million in fixed costs in Ocala by the end of the year. When asked by an analyst what positions might be cut, Kushner declined to specify.

    "We haven't discussed that with the individuals who are affected," she said.

    Federal Signal reported earnings per share Thursday of 23 cents for the quarter on income from continuing operations of $11 million, slightly below analysts' reported expectations of 25 cents a share.

    The Fire Rescue Group reported a 3 percent increase in orders from the previous year, to $89 million. But the increase was largely in Bronto aerial platform products, which saw substantially higher demand.

    The group's revenue for the quarter dropped 24 percent from the second quarter of 2006, to $75 million. Operating income for the same period dropped 78 percent down from $3.2 million to $500,000.

    For 2007 to date, the group is losing money, with an operating margin of -1.2 percent. By the end of the year, revenue is likely to be down 10 percent or more, and the group is expected to post a slight loss for the year, Kushner said.

    For more on this story and other local news, revisit ocala.com and read Friday's Star-Banner

  16. #16
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    Default

    Somewhat the same story, but with some additional content.

    Weak E-One sales cut Federal Signal results
    Job cuts likely as firm looks to trim $10 million in Ocala

    BY RICK CUNDIFF
    Star-Banner
    OCALA - Federal Signal, the parent company of Ocala's E-One firetruck plant, missed its earnings target for the second quarter of 2007, and E-One was the reason why.

    Federal Signal CEO Robert Welding laid the blame for the quarterly performance squarely at E-One's doorstep.

    "Our results were adversely impacted by worse than expected results at E-One," Welding said in a conference call for investors and analysts Thursday.

    Federal Signal's Fire Rescue Group, which comprises E-One and the Finland-based Bronto Skylift, is the only one of the corporation's four divisions expected to post an operating loss this year, said chief financial officer Stephanie Kushner.

    Welding and Kushner left no doubt that will mean job cuts at E-One.

    "We have reassessed the priorities for this business and are implementing cost reduction initiatives, including some reduction in our staff functions, which should materially lower the break-even point for our Ocala operation," Welding said in a news release before the conference call.

    Kushner said during the call that the company will cut $10 million in fixed costs in Ocala by the end of the year. When asked by an analyst what positions might be cut, Kushner declined to specify.

    "We haven't discussed that with the individuals who are affected," she said.

    Federal Signal reported earnings per share Thursday of 23 cents for the quarter on income from continuing operations of $11 million, slightly below analysts' reported expectations of 25 cents a share.

    The Fire Rescue Group reported a 3-percent increase in orders from the previous year, to $89 million. But the increase was largely in Bronto aerial platform products, which saw substantially higher demand.

    The group's revenue for the quarter dropped 24 percent from the second quarter of 2006, to $75 million. Operating income for the same period dropped 78 percent down from $3.2 million to $500,000.

    So far this year, the group is losing money, with an operating margin of negative 1.2 percent. By the end of the year, revenue is likely to be down 10 percent or more, and the group is expected to post a slight loss for the year, Kushner said.

    The major problem for E-One isn't production, but sales, Welding said.

    "The thing we're missing right now is having enough orders," he said.

    Welding said the company has added direct sales representatives and is trying to close several gaps in its regional dealership coverage.

    Welding also acknowledged that the company's online truck ordering system known as EZ-One needed some fine tuning and better training of dealer sales representatives.

    "We didn't get everything right," he said. "We're doing a lot more training. This is a very different way to sell than we've had in the past. We underestimated the amount of change that this would require from our salespeople."

    The news for Ocala wasn't all bleak. Welding repeated Federal Signal's commitment to keeping E-One in town.

    "Our objective is to remain in the Ocala area," he said. "We have a very skilled, very dedicated work force there, and it would be our intention to stay there."

    Although E-One passed up nearly $27 million in incentives to build a new plant in Ocala earlier this year, the company still needs to update its production facilities to stay competitive, Welding noted. Federal Signal is still considering how best to invest up to $20 million to improve E-One's capacity and efficiency, he said.

    "At some point, our manufacturing footprint becomes a bigger and bigger constraint," he said. "We don't know yet if it would encompass improving our existing facilities or moving to a new building."

    During the hourlong conference call, Welding never mentioned former Fire Rescue Group president Marc Gustafson's name. In response to a question from an analyst, he said Gustafson's July 17 resignation and the appointment of Peter Guile as E-One president represents a "tweaking" of existing management strategy, not a major change of direction for E-One.

  17. #17

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    Default Gustafson may reap $500,000 severance

    Gustafson may reap $500,000 severance
    Package is in line with former E-One president's earnings

    BY RICK CUNDIFF
    STAR-BANNER

    OCALA - Mark Gustafson may no longer be president of firetruck manufacturer E-One, but that doesn't mean he won't still reap a hefty paycheck from E-One's corporate parent.

    Gustafson, who resigned effective July 17, likely is eligible for a severance package worth at least a half-million dollars.

    As outlined in a proxy statement that Federal Signal filed with the federal Securities and Exchange Commission in April, Gustafson is eligible for a cash severance payment of $468,000, an additional $21,356 for continuation of insurance benefits, and $25,000 in outplacement assistance services.

    Total value: $514,356.
    Such severance packages, based on salary, are standard for all of Federal Signal's top executives. Gustafson, reached by telephone, declined to comment Friday.

    The dollar amount of the severance package is comparable to Gustafson's pay for last year. The proxy statement indicates Gustafson received $312,000 in base pay last year, and $141,772 in incentive pay based on performance.

    He also received:
    * $36,000 in relocation expenses for his 2005 move from South Carolina to Ocala;

    * a vehicle allowance of $11,400;
    * $5,742 for a 401(k) fund match; and
    * $455 for "other perquisites."
    The total: $471,369. That doesn't include the value of insurance and other company benefits. It also doesn't include stock awards and options valued by the company at $277,698.

    Federal Signal Vice President John Segvich did not return a call seeking comment on the proposed severance agreement. But if Gustafson follows the precedent of other Federal Signal executives, he's likely to receive the outlined package.

    Stephen C. Buck resigned in April 2006 as president of Federal Signal's Safety and Security Products Group, a position comparable to Gustafson's role as president of the Fire Rescue Group.

    On May 5, 2006, Federal Signal filed a form with the SEC indicating it would pay him $422,500, the approximate amount of his annual salary and bonus.

    Potentially more lucrative was the agreement to allow immediate vesting of 64,008 shares of Federal Signal stock. As of Friday, when Federal Signal stock closed at $14.70 a share, those shares would have been worth nearly $941,000.

    On the day of the agreement last year, with the stock at $18.24, Buck's unvested shares would have been worth $1.17 million.

    The April proxy statement indicates Gustafson isn't eligible for such stock vesting.

    The company also agreed to provide Buck with executive outplacement services and continue to subsidize his health insurance premiums for up to 18 months.

    In return, Federal Signal gets silence. A copy of the agreement with Buck, filed with the SEC, indicates he was prohibited from even disclosing the existence of a severance agreement, let alone the terms.

    The agreement also dictates that Buck not "take any actions or make any statements to the public, future employers, current, former or future Company employee, or any other third party whatsoever that disparage or reflect negatively on the Company, and its affiliates, and its and their officers, directors or employees."

    A separate agreement with another former executive who resigned last year, Karen Latham, used similar language. Latham, the company's vice president and treasurer, resigned last August. She received a total of $235,713 in cash, plus subsidized insurance and outplacement assistance.

    Should Buck or Latham - and, presumably, Gustafson - fail to comply with the confidentiality agreements, Federal Signal would have the right to sue for an injunction against them, and they could be liable for the company's legal costs.

    Federal Signal President Robert Welding and chief financial officer Stephanie Kushner said Thursday that the company will cut $10 million in fixed costs at E-One's Ocala operations by the end of the year, a move that likely will include job cuts.

    Rick Cundiff may be reached at rick.cundiff@starbanner.com or at (352) 867-4130.

  18. #18
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    Cool Gustafson may reap $500,000 severance

    Gustafson may reap $500,000 severance
    Package is in line with former E-One president's earnings

    BY RICK CUNDIFF
    STAR-BANNER

    OCALA - Mark Gustafson may no longer be president of firetruck manufacturer E-One, but that doesn't mean he won't still reap a hefty paycheck from E-One's corporate parent.

    Gustafson, who resigned effective July 17, likely is eligible for a severance package worth at least a half-million dollars.

    As outlined in a proxy statement that Federal Signal filed with the federal Securities and Exchange Commission in April, Gustafson is eligible for a cash severance payment of $468,000, an additional $21,356 for continuation of insurance benefits, and $25,000 in outplacement assistance services.

    Total value: $514,356.
    Such severance packages, based on salary, are standard for all of Federal Signal's top executives. Gustafson, reached by telephone, declined to comment Friday.

    The dollar amount of the severance package is comparable to Gustafson's pay for last year. The proxy statement indicates Gustafson received $312,000 in base pay last year, and $141,772 in incentive pay based on performance.

    He also received:
    * $36,000 in relocation expenses for his 2005 move from South Carolina to Ocala;

    * a vehicle allowance of $11,400;
    * $5,742 for a 401(k) fund match; and
    * $455 for "other perquisites."
    The total: $471,369. That doesn't include the value of insurance and other company benefits. It also doesn't include stock awards and options valued by the company at $277,698.

    Federal Signal Vice President John Segvich did not return a call seeking comment on the proposed severance agreement. But if Gustafson follows the precedent of other Federal Signal executives, he's likely to receive the outlined package.

    Stephen C. Buck resigned in April 2006 as president of Federal Signal's Safety and Security Products Group, a position comparable to Gustafson's role as president of the Fire Rescue Group.

    On May 5, 2006, Federal Signal filed a form with the SEC indicating it would pay him $422,500, the approximate amount of his annual salary and bonus.

    Potentially more lucrative was the agreement to allow immediate vesting of 64,008 shares of Federal Signal stock. As of Friday, when Federal Signal stock closed at $14.70 a share, those shares would have been worth nearly $941,000.

    On the day of the agreement last year, with the stock at $18.24, Buck's unvested shares would have been worth $1.17 million.

    The April proxy statement indicates Gustafson isn't eligible for such stock vesting.

    The company also agreed to provide Buck with executive outplacement services and continue to subsidize his health insurance premiums for up to 18 months.

    In return, Federal Signal gets silence. A copy of the agreement with Buck, filed with the SEC, indicates he was prohibited from even disclosing the existence of a severance agreement, let alone the terms.

    The agreement also dictates that Buck not "take any actions or make any statements to the public, future employers, current, former or future Company employee, or any other third party whatsoever that disparage or reflect negatively on the Company, and its affiliates, and its and their officers, directors or employees."

    A separate agreement with another former executive who resigned last year, Karen Latham, used similar language. Latham, the company's vice president and treasurer, resigned last August. She received a total of $235,713 in cash, plus subsidized insurance and outplacement assistance.

    Should Buck or Latham - and, presumably, Gustafson - fail to comply with the confidentiality agreements, Federal Signal would have the right to sue for an injunction against them, and they could be liable for the company's legal costs.

    Federal Signal President Robert Welding and chief financial officer Stephanie Kushner said Thursday that the company will cut $10 million in fixed costs at E-One's Ocala operations by the end of the year, a move that likely will include job cuts.

    Rick Cundiff may be reached at rick.cundiff@starbanner.com or at (352) 867-4130.

  19. #19
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    Default E-One's future debated

    OCALA - With red ink flowing and sales down, could an eventual sale of firetruck manufacturer E-One by its corporate owner be possible?

    At least one industry expert and an investor say yes.

    E-One, once the industry leader, has fallen to third place in recent years, with market share continuing to slip. Robert Welding, president and CEO of E-One parent Federal Signal Corp., told analysts and investors during an Oct. 25 conference call that the division that includes E-One will lose $9 million to $12 million by the end of the year.

    A representative of a mutual fund that holds Federal Signal stock has raised the prospect that the Oak Brook, Ill. conglomerate will have to sell E-One to satisfy investors.

    Brad Evans, portfolio manager of Heartland Value Fund, said during the investor conference call that another year of poor financial performance at E-One would be "unacceptable."

    On Oct. 29, in a Webcast on thestreet.com, Evans said a sale might be possible.

    "It's well-documented their firetruck business is not performing," he said. "The elephant in the room for these guys is their E-One truck subsidiary. It's only 20 percent of their business. It's losing roughly $15 million to $20 million . . . They either sell it or they turn it to profitability. Frankly we think that there could be some pressure on management to act quickly to turn this division around."

    Fire industry consultant Bob Barraclough, who was vice president of sales and marketing for E-One in the mid-1980s, agreed a sale was a possibility.

    "It's obvious that Federal Signal doesn't know how to fix it," Barraclough said. "You close it or you sell it."

    Federal Signal has given no indication of an intent to sell. David Janek, Federal Signal vice president for investor relations, said the company wouldn't comment on rumors. Spokesman John Segvich said in an e-mail last week that Federal Signal "remains committed to E-ONE's long-term success."

    Walter Liptak, a Chicago-based analyst who covers Federal Signal said recently he didn't believe the company would sell E-One. The firetruck maker has long been part of Federal Signal's core businesses, he said.

    E-One's troubles come in a tough market for firetruck makers. Welding said in the Oct. 25 call that the market overall was down about 20 percent. Another manufacturer, Elite Fire Apparatus, ran into financial problems that forced Montgomery County, Md. to cancel an order for 37 trucks last week after Elite delivered only one.

    Yet days after Federal Signal's earnings report, Oshkosh Truck, parent company of Pierce Manufacturing, the nation's largest firetruck producer, reported gains in both sales and market share for its Fire and Emergency division.

    What's Pierce doing right that E-One's doing wrong?

    It's not the product. Dealers and industry experts say the machines coming out of the Ocala plant can compete with the best on the market.

    The C.W. Williams Company, based in North Carolina, was an E-One dealer in the mid-Atlantic states for 16 years, selling more than 1,000 trucks. The dealership was E-One's dealer of the year in 1999 and 2001.

    Dean Allred, the dealership's vice president of sales and marketing said E-One's products were second to none.

    "A lot of the success of the C.W. Williams Company success was built on what (E-One) was able to produce," he said. "I'm confident the product they are building today is still an outstanding product."

    With new management in 2005, E-One started to limit ways a buyer could customize each truck, Allred said.

    "Our challenge was what they were willing to build and what we had to go through to get them to build it," he said.

    C.W. Williams invested heavily in service to repeat customers. After 2004, E-One wasn't interested in that, Allred said.

    In 2006, the dealership dropped E-One and switched to a competitor, Rosenbauer.

    "It was very apparent to us they were very flexible," Allred said. "We found just the opposite of what we were dealing with (at) E-One."

    E-One has lost several dealers in key areas over the past few years, including dealerships in western Canada, Ohio and Texas. The company recently appointed Ocala-based Hall-Mark Fire Apparatus as its new dealer in Texas.

    "The dealer erosion problem is the most difficult problem to resolve," said C. Peter Jorgensen, editor and publisher of Fire Apparatus and Emergency Equipment Magazine. "It takes a long time for a dealer to build up relationships and trust with a customer ... The loyalty is ... between the local chiefs and the municipality and the dealer."

    E-One's restrictions on customized products is hurting the company, Barraclough said.

    "You're going to have to rethink, from Oak Brook management on down, what are you going to do? Are you going to be a custom truck builder or are you going to be a Ford or Chevrolet of the firetruck world? There's not room in the industry for E-One to be a Ford or a Chevrolet."

    By comparison, Pierce excels in listening to customers, Barraclough said.

    "They seem to be listening to their customers a lot more than E-One or American LaFrance," he said. "They have the best sales force in the business."

    Management changes and the question of a new E-One plant that ended this spring when Federal Signal decided not to accept a $26.7 million incentive package to build a new plant in Ocala also have negatively affected the company, Jorgensen said.

    "The confusion and turmoil over the ... new plant, and the replacement of Marc Gustafson ... that has been very controversial and had a negative impact and genuinely sent a shock wave through the industry," he said. "With the employee changes at management level, and E-One making the decision not to build the new plant, the question of what the long-term future of E-One will be is somewhat open."

    Rick Cundiff may be reached at rick.cundiff@starbanner.com or at 867-4130.

  20. #20
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    Default Shows just how "out of touch" E-One management really is...

    New home of E-One president upsets officials Guile is the 5th E-One president since 1998

    BY RICK CUNDIFF
    STAR-BANNER




    Peter Guile's home is shown in Gainesville in the Haile Plantation annex on Friday.
    THE GAINESVILLE SUN
    Purchase Star-Banner photo reprints

    OCALA - Peter Guile didn't waste much time finding a place to live when he took over as president of firetruck manufacturer Emergency One.

    Guile officially replaced Marc Gustafson as the head of E-One on July 17. Less than a month later, according to property records, he closed on a 3,714-square-foot home priced at $775,000.

    But unlike the majority of the employees he supervises, Guile isn't likely to be spending much time in Marion County. The home he purchased is in Gainesville's upscale Haile Plantation neighborhood.

    Guile declined to comment Friday on why he elected to live outside Marion County.

    "What I do with my family, and where we choose to live is our business," he said.

    Ocala City Councilman Charles Ruse didn't disagree with that statement, but said he found Guile's choice disappointing.

    "These guys are high-profile big deals, and it's just disappointing that this community is not able to overcome his perception that the community is not good enough," he said.

    Guile's predecessor Gustafson, who came to E-One in late 2004, purchased a $1.5 million home in 2005 in Golden Ocala, county property records indicate.

    Guile's mission is to restore E-One's profitability, something that has nothing to do with where he lives, said Ocala City Councilman Daniel Owen.

    "If he feels he can do that from Gainesville, more power to him," Owen said.

    But Owen said he did wonder about the message it sends.

    "It is kind of one of those things where you wonder why they don't want to take up closer ties with the community."

    Owen doubted the matter would make much difference to E-One's employees.

    "I think the E-One employees are kind of numb," he said. "It's kind of like the president-of-the-month club over there."

    Guile is the fifth president E-One has had since 1998.

    Pete Tesch, president and CEO of the Ocala/Marion County Economic Development Corp., said Guile's decision to live outside the county wasn't unusual for executives.

    "I don't think that's necessarily unique to E-One. I personally don't see that as a negative reflection on our community," he said. "I think that's a mischaracterization."

    County Commissioner Andy Kesselring also wasn't concerned.

    "He can live anywhere he would like to live," he said.

    Rick Cundiff may be reached at rick.cundiff@starbanner.com or at 352-867-4130.

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