Interim Report January - March 2011
Magnus Yngen, President and CEO:
”The year started off with strong demand in the North American market and we have a strong product line-up to meet the growing demand. However, we have not been able to capitalize on this due to production disturbances in our largest plant in North America. The disturbances negatively affected shipments and increased costs significantly. Costs were approximately SEK 150m higher, whereof the majority in March. We are taking measures in order to resolve the situation and to minimize the impact for our customers but we will continue to have high costs throughout the season.
For the total Husqvarna Group, sales and operating income adjusted for exchange rate effects and items affecting comparability, increased by 6 and 7 percent respectively, compared to the first quarter previous year. The year started off with significantly higher order intake compared to last year. Europe & Asia/Pacific delivered strong results as a result of higher sell-in and a positive mix development. Construction continued its steady improvement in sales, earnings and margin. As a consequence of the disturbances, operating income for Americas was negative in the first quarter.”
- Net sales amounted to SEK 8,774m (9,082) and operating income to SEK 662m (778). Income for the period amounted to SEK 484m (535), or SEK 0.84 (0.92) per share.
- Changes in exchange rates had a negative effect on operating income of approximately SEK -171m.
- Net sales and operating income for the Group, adjusted for exchange rate effects and items affecting comparability, increased by 6% and 7% respectively.
- Net sales and operating income for Americas was negatively affected by production disturbances.
- Higher volumes and a positive mix contributed to improved sales and operating income for Europe & Asia/Pacific.
- Construction was charged with costs amounting to SEK 40m relating to the closure of a production facility in Spain.
A combined press and telephone conference will be held at the Anglais Hotel in Stockholm at 13:00 CET on April 19, 2011. To participate by telephone, please call +46 (0)8 5052 0110 or +44 (0) 20 7162 0077 ten minutes prior to the start of the conference. The conference call will also be audio cast live. To participate in the audio cast, log on to www.husqvarna.com/ir. A replay of the telephone conference will be available at www.husqvarna.com/ir.
Bernt Ingman, Chief Financial Officer, +46 8 738 75 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.
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 11:00 CET on April 19, 2011.