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Husqvarna implements hiring freezes as its economy weakens

Monday, 26 September 2011
Husqvarna, a leading manufacturer of chain saws and lawn mowers, has implemented hiring freezes due to the decline in global demand and the uncertain economic situation.

Confirming the outlook in the second quarter report 2011, the total Group net sales have declined. Sales for the third quarter are estimated to around SEK 6,200m (6,907), which is approximately 5% lower compared with the corresponding quarter 2010 adjusted for ex-change rate effects.

Operating income for the third quarter, which due to normal seasonality represents only a small share of full-year earnings, is estimated in the range of SEK 100m (411). Costs related to the production disturbances in Orangeburg amounts to approximately SEK 45m and costs related to the termination of the former CEO’s contract amounts to SEK 21m and are included in the estimated third quarter results.


As commented in the second quarter report, market demand weakened towards the end of the quarter. The weakness has continued. Operating income for the third quarter has also been impacted mainly by an unfavourable mix and higher costs.
Bad weather immediately came on the company as the outlook was announced in the company statement. Husqvarna shares fell more than 4 percent after the announcement.

According to the company, extensive efforts to eliminate the supply chain disturbances in the Orangeburg production facility in the USA have progressed successfully. In order to ensure successful delivery of committed volumes, the ramp up of pre-season production has started earlier than previous year.
The Group’s product range listings with major retailers in the North American market for 2012, although not yet finalized, are projected to be unchanged versus 2011, however with a somewhat new balance among the different retailers, the company writes in a report.
By Scancomark.se Team

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