Swedish outdoor products manufacturer Husqvarna reported net profit for 2009 fell to a lower-than-expected SEK 899 million (about U.S. $125 million), about a 19.6 year-over-year decrease compared with 2008’s total of SEK 1.118 billion. Net sales for the year decreased 8 percent to SEK 34.074 billion (about U.S. $4.7 billion).
Husqvarna said its listings with major retailers for 2010 are lower in North America but slightly higher in Europe compared with 2009. In the first quarter of 2010, shipments are expected to be lower than a year earlier as a result of a long winter. Net sales for the fourth quarter dropped 8 percent to SEK 4.732 billion (about U.S. $658 million), or about 6 percent adjusted for changes in exchange rates and acquisitions.
“Market conditions in the quarter were weaker than in the previous year,” said Magnus Yngen, president and CEO of Husqvarna. “Retailers were cautions about building up inventories for the coming season. Group sales declined in all product areas, and operating income was negatively affected by lower sales and production volumes. On the positive side, savings from implemented cost-cutting measures were realized according to plan.”
