Risks and uncertainty factors
A number of factors may affect Husqvarna Group’s operations in terms of operational and financial risks.
Operational risks include general economic conditions, as well as trends in consumer and professional spending, particularly in North America and Europe, where the majority of the Group’s products are sold. An economic downturn in these markets may have an adverse effect on Group sales and earnings. Shifts in product technology as well as shifts in distribution structure could also have a negative impact on Group sales and earnings, as will fluctuations in prices of sourced raw materials and components.
Short term, demand for the Group’s products is dependent on weather conditions. Dry weather can reduce demand for such products as lawn mowers and tractors, but can stimulate demand for watering products. Demand for chainsaws normally increases after storms and during cold winters.
Husqvarna’s operations are also subject to seasonal variations. The Group´s production processes and supply chain are therefore adapted to respond to changes in weather conditions. In the ordinary course of business, the Group is exposed to legal risks such as commercial, product liability and other disputes and provides for them as appropriate.
Financial risks refer primarily to currency exchange rates, interest rates, financing, tax and credit risks. Risk management within the Husqvarna Group is regulated by a financial policy established by the Board of Directors.
For further information on risks and uncertainty factors, see the Annual Report.