Magnus Yngen, President and CEO:
“The year had a slow start due to the late spring in several markets. However,
during the second quarter activities gradually improved with strong sales in
Sales adjusted for changes in exchange rates, acquisitions and divestments
(adjusted sales) were up 5% during the quarter. Europe & Asia/Pacific increased
by 10% and Americas was down 1%. 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. Performance was
strong in several important markets, especially in Europe. Our estimate is that
we have gained market shares in Europe during the first half of the year. Dealer
sales were up significantly in all markets, demonstrating the strength of our
brand in the market for high-end products. In other important areas such as
Eastern Europe, demand continued to recover and sales picked up substantially.
Construction showed good improvement in sales; the sustained focus on innovation
and market-leading products have resulted in increased market shares.
Operating income adjusted for items affecting comparability, changes in exchange
rates, acquisitions and divestments (adjusted operating income) increased by
34%. Increased sales and production volumes, improved mix as well as continued
cost efficiency gains contributed positively.
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. 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.”
· Net sales for the second quarter amounted to SEK 11,457m (11,481) and
operating income was SEK 1,319m (1,116). Excluding restructuring charges,
operating income amounted to SEK 1,476m (1,134).
· Adjusted operating income in the second quarter increased 34%.
· Operating margin for the second quarter increased to 11.5% (9.7).
· Higher operating income for Europe & Asia/Pacific and Construction in the
· Net sales for the first half-year amounted to SEK 20,539m (22,633) and
operating income was SEK 2,097m (1,902). Income for the first half-year was SEK
1,471m (1,225), or SEK 2.54 (2.33) per share.
PRESS AND TELEPHONE CONFERENCE
A combined press and telephone conference will be held at 12.00 CET on 20 July
2010 at the Scandic Anglais Hotel, Humlegårdsgatan 23, Stockholm. To participate
in the telephone conference, please call
+46 (0)8 5052 0110 or +44 (0) 20 7162 0077 ten minutes prior to the start of the
A replay of the telephone conference will be available at www.husqvarna.com/ir.
This interim report comprises information which Husqvarna is required to
disclose under the Securities Markets Act and/or the Financial Instruments
Trading Act. It was released for publication at 08.00 CET on 20 July 2010.
This information was brought to you by Cision http://www.cisionwire.com
Bernt Ingman, Chief Financial Officer
+46 36 14 65 05
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
Copyright Business Wire 2010