Husqvarna Group last week announced first-quarter 2013 net sales of SEK 9.02 billion (about U.S. $1.37 billion) an 8-percent decline from SEK 9.81 billion in the same period a year ago. The group reported an operating income loss of 26 percent to SEK 688 million (U.S. $104.2 million) from SEK 930 million in the first-quarter of 2012, relating to the continued downturn in Europe and Asia/Pacific.
Earnings per share in the quarter decreased to SEK 0.81 (U.S. $0.12) from SEK 1.10 in the year-ago quarter.
“Husqvarna’s first-quarter results were impacted by unfavorable weather conditions and continued macroeconomic slowdown in Europe,” said Hans Linnarson, president and CEO. “Earnings were also negatively affected by the strong Swedish Krona, which accounted for more than half of the decline in operating income, and reduced manufacturing utilization to meet the lower demand. Improvements in Americas and Construction were not enough to offset the downturn in Europe.
“We are pleased with the results coming from operational improvements in our business area Americas. The effects of mix, channel management, price and manufacturing efficiencies all contributed to an improved development of operating income and margin in the first quarter. The positive development for Construction continued, although it was mixed between the different regions. Operating income and margin improved over prior year, primarily due to a positive product mix impact.”
The company, which recently announced a SEK 1 billion investment (U.S. $151.5 million) in manufacturing of chainsaw chains and cylinders, has also appointed Kai Wärn its new president and CEO as of July 1.
“We have a continued cautious outlook for demand in Europe, while the outlook for North America remains more positive,” Linnarson added. “Late last year we announced actions to reduce cost and improve flexibility. The initiatives are on track and will gradually deliver savings.”
The Husqvarna Group is a producer of outdoor power products including chainsaws, trimmers, lawn mowers and garden tractors. The Group is also a European leader in consumer watering products and one of the world leaders in cutting equipment and diamond tools for the construction and stone industries.
