So you're running Suse linux 13.2? If so, sounds like that's your bug.
Honestly, my first reaction to the error is that it looks like a command it's executing is getting mangled, with the -lm commandline argument being treated as a new command instead of an argument. Someone who's more familiar with the AVR compile process would be better able to assess that, though.
mv /usr/share/arduino-1.0.6/hardware/tools /usr/share/arduino-1.0.6/hardware/tools.old