Husqvarna Second-quarter 2013 Sales Dip 5 Percent

July 19, 2013

Husqvarna last week announced net sales in the second quarter of 2013 amounted to SEK 10.23 billion (about U.S. $1.55 billion), a 5-percent decline from SEK 10.71 billion in the year-ago quarter. Adjusted for exchange rate effects, net sales were unchanged. Operating income in the quarter amounted to SEK 1.02 billion (U.S. $155.2 million) compared to SEK 1.15 billion in Q212. Adjusted for changes in exchange rates, operating income improved slightly.

“Group sales improved over the course of the quarter, albeit from a slow start of the season due to unusually cold weather in both Europe and North America,” said new Husqvarna president and CEO Kai Wärn who took over July 1.

Sales for Europe & Asia/Pacific increased 2 percent, Construction 7 percent while Americas’ sales decreased 3 percent, mainly as a result of the group’s continued sales channel management to prioritize margin.

Group operating income for the quarter declined, impacted mainly by negative currency effects within Europe & Asia/Pacific. The operating income was also affected by under-absorption due to inventory reductions. The stable earnings improvement for Americas continued, benefiting from dealer channel growth and improved cost efficiency. The positive earnings trend for Construction was supported by higher sales volumes and improved mix. As a result of the inventory reductions, group operating cash flow for the second quarter was strong.

Earnings per share in the quarter decreased to SEK 1.15 (U.S. $0.17) compared to SEK 1.36 in the year-ago period.

“We have a continued cautious demand outlook for Europe, while the outlook for North America remains more positive for lawn and garden as well as for construction products,” Wärn said. “During the second half of the year we will review how we can further accelerate key improvement programs in order to realize our financial goals.”

Husqvarna Group is a global producer of outdoor power products including robotic lawn mowers, garden tractors, chainsaws and trimmers. It is also a European leader in consumer watering products and a global leader in cutting equipment and diamond tools for the construction and stone industries.