Interim report January - June 2013

Report

Press release

Kai Wärn, President and CEO:
“Group sales improved over the course of the quarter, albeit from a slow start of the season due to unusually cold weather in both Europe and North America. Sales for Europe & Asia/Pacific increased 2%, Construction 7% while Americas’ sales decreased -3%, mainly as a result of the Group’s continued sales channel management to prioritize margin.
    Group operating income for the quarter declined, impacted mainly by negative currency effects within Europe & Asia/Pacific. The operating income was also affected by under-absorption due to inventory reductions. The stable earnings improvement for Americas continued, benefiting from dealer channel growth and improved cost efficiency. The positive earnings trend for Construction was supported by higher sales volumes and improved mix. As a result of the inventory reductions, Group operating cash flow for the second quarter was strong.
    We have a continued cautious demand outlook for Europe, while the outlook for North America remains more positive for lawn and garden as well as for construction products.
    During the second half of the year we will review how we can further accelerate key improvement programs in order to realize our financial goals.”

Second quarter

  • Net sales amounted to SEK 10,227m (10,706). Adjusted for exchange rate effects, net sales were unchanged.
  • Operating income amounted to SEK 1,022m (1,152). Adjusted for changes in exchange rates, operating income improved slightly.
  • Changes in exchange rates negatively impacted operating income by SEK -156m year over year.
  • Strong operating cash flow amounting to SEK 1,915m (2,535).
  • Earnings per share decreased to SEK 1.15 (1.36).
  • Kai Wärn new President and CEO as of July 1, 2013.

Telephone conference
A telephone conference, hosted by Kai Wärn, President and CEO, and Ulf Liljedahl, CFO, will be held at 10:00 CET on July 19, 2013. To participate, please dial +46 (0) 8 5052 0110 (Sweden) or +44 (0)20 7162 0077 (UK) ten minutes prior to the start of the conference. The conference call will also be audio cast live on www.husqvarnagroup.com/ir. A replay will be available at www.husqvarnagroup.com/ir later the same day.