Husqvarna last week reported net sales for the second quarter of SEK 11.46 billion (about US $1.57 billion), basically flat from 11.48 (U.S. $1.57 billion) in the same period last year. Operating income was SEK 1.32 billion (U.S. $180.5 million), a slight increase from 1.12 billion (U.S. $152.7 million) a year ago on higher operating income for Europe & Asia/Pacific and Construction in the quarter. Excluding restructuring charges, operating income amounted to SEK 1.48m (U.S. $201.9 million) from SEK 1.13 billion (U.S. $155.1). Adjusted operating income in the second quarter increased 34 percent.
Net sales for the first half of 2010 were SEK 20.54 billion (U.S. $2.81 billion), down from 22.63 billion (U.S. $3.10 billion) in the first half of 2009. Operating income in the first half was SEK 2.10 billion (U.S. $286.9 million), an improvement from 1.90 billion (U.S. $260.2 million) in the first half of 2009. Income for the first half-year was SEK 1.47 billion (U.S. $201.3 million), an increase from 1.23 billion (U.S. $167.6 million) in the same period a year ago, or SEK 2.54 per share (U.S. $0.35) from 2.33 (U.S. $0.32) in the first half of 2009.
“The year had a slow start due to the late spring in several markets,” said Magnus Yngen, Husqvarna president and CEO. “However, during the second-quarter activities gradually improved with strong sales in June. Sales adjusted for changes in exchange rates, acquisitions and divestments (adjusted sales) were up 5 percent during the quarter. Europe & Asia/Pacific increased by 10 percent and Americas was down 1 percent. In Americas we were able to compensate most of the lost low-end listings with strong improvements in other accounts.”
End-user demand has increased compared to the preceding season, and dealer sales were up significantly in all markets, the company said. In addition, Construction showed good improvement in sales.
“Although it seems our industry has passed the bottom of the recession and end-user demand is on the rise, the trade still remains cautious regarding inventory management,” said Yngen. “Lead times are short and shipments are unusually volatile. Our estimate is that Group shipments in the third quarter will be slightly higher compared with the third quarter of 2009.”
The Husqvarna Group produces outdoor power products including chainsaws, trimmers, lawn mowers and garden tractors. The Group is also one of the world leaders in cutting equipment and diamond tools for the construction and stone industries. Net sales in 2009 were SEK 34 billion (U.S. $4.65 billion).