Hans Linnarson, Acting CEO and President:
"Husqvarna's consumer business has been affected by the slowdown in the global consumer demand, the uncertain economic environment and the unfavorable weather. Operating income for the third quarter declined, mainly as a result of lower sales, unfavorable mix and higher costs.
We have maintained our market positions for forest and garden products both in EuropeandNorth America, despite the supply chain challenges in North America. In some categories, like ride-on and robotic mowers in Europe, we have significantly increased our market shares. Accumulated for the year up until September, sales for Europe & Asia/Pacific and Construction have increased while Americas' decreased, adjusted for exchange rate effects.
Construction's performance has been strong all year, resulting in increased operating income and strengthened market positions.
Pre-season production for 2012 has started earlier than last year in order to secure a high customer service level. The Group's listings for forest and garden products are estimated to be unchanged versus 2011, however with an improved mix among the retailers, confirming the success of our efforts to supply market leading, innovative products with strong brands."
- Net sales for the Group, adjusted for exchange rate effects, decreased by 2%. Net sales for the Group amounted to SEK 6,410m (6,907) and operating income to SEK 113m (411). Income for the period amounted to SEK 55m (402), or SEK 0.10 (0.70) per share.
- Operating income was negatively affected by SEK -83m whereof SEK -38m is directly related to production disturbances, SEK -21m relates to the termination of the former CEO's contract and SEK -24m refers to items affecting comparability. Changes in exchange rates had a positive effect of SEK 8m.
First nine months
- Strengthened market position for Construction and maintained for forest and garden products.
- Net sales for the Group, adjusted for exchange rate effects, increased by 1%. Net sales for the Group amounted to SEK 25,363m (27,446) and operating income to SEK 1,787m (2,508). Income for the period amounted to SEK 1,220m (1,873), or SEK 2.12 (3.25) per share.
- Operating income was negatively affected by SEK -453m whereof SEK -368m is directly related to production disturbances, SEK -21m relates to the termination of the former CEO's contract and SEK -64m refers to items affecting comparability. Changes in exchange rates had a negative effect of SEK -335m (130).
A combined press and telephone conference will be held at 11:00CET on October 20, 2011. To participate by telephone, please call +46 (0)8 5052 0110 or +44 (0) 20 7162 0077 ten minutes prior to the start of the conference. The conference call will also be audio cast live. To participate in the audio cast, log on to www.husqvarna.com/ir. A replay of the telephone conference will be available at www.husqvarna.com/ir.
Ulf Liljedahl, CFO, +46 8 738 84 42
Boel Sundvall, SVP Corporate Communications & IR, +46 8 738 70 18
Tobias Norrby, Investor Relations Manager, +46 8 738 83 35
Husqvarna Press Hotline, +46 8 738 70 80