Press release
Hans Linnarson, President and CEO:
"Husqvarna Group delivered a first quarter with higher sales and operating income for all three business areas. We have many new products reaching the market this year, including additional robotic mowers, upgraded riders and a new range of premium consumer products under the McCulloch brand, that have been received well by the trade. Together with operational improvements in our supply chain, we capitalized on increased demand.
The market in the U.S. was favorable, with increased consumer spending on lawn and garden equipment. The overall U.S. economic environment developed positively and the market for outdoor products was also fuelled by an early and warm spring. Improved factory delivery performance helped the Group to a strong sales development in the first quarter, with market share gains in several areas.
In Europe, the Group's development was stable, which was in line with the market trend. Demand in southern Europe and France was weaker than last year, while demand in Germany and northern Europe had a positive development. The operating margin for Europe & Asia/Pacific remained on the same high level, compared to the previous year's strong first quarter.
For Construction, the positive development continued. Sales, operating income and margin improved, also primarily driven by a strong U.S. development.
In the US market, the near term outlook is for the stronger demand year-on-year to continue, while the demand outlook for the European market is more difficult to assess.
Customer service and delivery reliability are some of the Group's top priorities for 2012, and I am pleased to note that so far into the season, we have improved in both. However, further efficiency improvements are needed."
· Net sales increased by 12% to SEK 9,811m (8,774). Adjusted for exchange rate effects, net sales
increased by 9%.
· Strong sales performance and market share gains for Americas and Construction, stable development
for Europe & Asia/Pacific.
· Operating income increased to SEK 915m (662). Higher operating income for Americas and Construction, stable for Europe & Asia/Pacific.
· Operating cash flow improved to SEK -2,443m (-2,809).
· Earnings per share increased to SEK 1.10 (0.84).
Telephone conference
A combined press and telephone conference, hosted by Hans Linnarson, President and CEO, and Ulf Liljedahl, CFO, will be held at the Anglais Hotel in Stockholm at 11:00 CET on April 26, 2012. 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.