Year-end report 2008

Magnus Yngen, President and CEO:
“Market conditions deteriorated further during the fourth quarter. Retailers were more cautious than last year about building up inventories for the coming garden season. Apart from the negative impact from lower sales and production volumes, we took a charge of SEK 316m for the full year related to the personnel cutbacks that are being implemented to reduce costs in the Group, of which SEK 301m in the fourth quarter. The operating margin for the full year was 7.3% (10.7), including the above mentioned charge.”

• Net sales for the full-year 2008 declined by 3% to SEK 32,342m (33,284) and operating income by 34% to SEK 2,361m (3,564). Income for the full year was SEK 1,288m (2,036), corresponding to SEK 3.34 (5.29) per share.

• Net sales for the fourth quarter declined by 1% to SEK 5,126m (5,196), and operating income was negative in the amount of SEK -472m (269).

• Operating income for the quarter includes a charge of SEK 301m for previously announced personnel cutbacks.

• Operating cash flow for the full-year rose to SEK 2,013m (1,843), and for the fourth quarter to SEK 116m (-215).

• The Board of Directors proposes that no dividend will be paid for 2008.

• The Board has resolved on a rights issue of approximately SEK 3 billion, subject to approval by an Extraordinary General Meeting. The rights issue is fully committed and underwritten.


TELEPHONE CONFERENCE
A combined press- and telephone conference will be held at 14.00 CET on 20 February 2009 at Husqvarna’s head-quarters on Lindhagensgatan 126 in Stockholm. To participate by phone, please call +46 (0) 8 5052 0110 (Sweden) or +44 (0)20 7162 0077 (UK) ten minutes in advance. A replay of the telephone conference will be available at www.husqvarna.com/ir as of late afternoon the same day.