Husqvarna AB: Interim Report January - September 2019

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Oct 22, 2019, 02:15 ET

STOCKHOLM, Oct. 22, 2019 /PRNewswire/ -- Kai Wärn, President and CEO:

"Net sales were flat in the quarter but grew 2% adjusted for the exited Consumer Brands business and currency effects. Sales were negatively affected by weaker demand in North America, particularly for the wheeled segment, while they developed positively in Europe with good growth for robotic lawn mowers and battery products. Operating income increased to SEK 414m (225), excluding items affecting comparability, with a positive development in all divisions. Our restructuring activities and efficiency improvements, as well as price increases contributed to the higher operating income.

The Husqvarna Division achieved net sales growth of 2%, adjusted for Consumer Brands exits and currency effects, and operating income increased by SEK 97m in the third quarter, excluding items affecting comparability. The improvement was driven by mix, price increases as well as efficiency and restructuring savings, but was affected by under-absorption due to lower volumes in North America.

The Gardena Division had yet another strong quarter, also when comparing to the high reference point last year. Product mix effects, efficiency and restructuring savings contributed to the strong results.

The Construction Division delivered growth in the quarter, driven by a good development in Europe, Asia Pacific and Emerging Markets. The growth combined with efficiency savings and price increases supported an increased operating income.

We are proud to drive technology development in our industry and the introduction of the new Husqvarna EPOS technology is a great example, providing robotic lawn mowing with virtual boundary technology. We continue to develop new solutions and concepts through investments in research and development.

During the year, we have made good progress on our profitability improvement trajectory. Our last 12 month operating margin amounts to 9.3%, increasing from 7.9% as at the end of 2018, excluding items affecting comparability. Direct operating cash flow for the first nine months improved to SEK 3,771m (2,114), driven by higher operating income and positive changes in working capital. Going forward we will increase our focus on cost efficiencies to support continued strategic initiatives and our profitability improvement trajectory."

Third quarter 2019

Net sales increased 5% to SEK 8,429m (8,042), or was flat if adjusted for changes in exchange rates. Net sales grew by 2% when adjusted for exit of Consumer Brands business.

Operating income increased to SEK 414m (225), excluding items affecting comparability of SEK 0m (-349).

Operating margin improved to 4.9% (2.8), excluding items affecting comparability.

Operating cash flow increased to SEK 749m (628).

Earnings per share after dilution amounted to SEK 0.47 (-0.32). Telephone conferenceA combined press and telephone conference, hosted by Kai Wärn, President and CEO, and Glen Instone, CFO, will be held at Husqvarna Group's office, Regeringsgatan 28, Stockholm at 10:00 CET on October 22, 2019. To participate, please dial +46 (0) 8 566 184 30 (Sweden) or +44 (0) 8 448 228 902 (UK) ten minutes prior to the start of the conference. Conference ID: Husqvarna or 3389798#. The conference call will also be audio cast live on www.husqvarnagroup.com/ir. A replay will be available later the same day.

Contacts

Glen Instone, CFO, Senior Vice President, Finance, IR & Communication, +46-72-716-5032

Johan Andersson, Director, Group Corporate Communications and Investor Relations, +46-702-100-451

This press release contains insider information that Husqvarna AB is required to disclose under the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact person set out above, at 08.00 CET on October 22, 2019.

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https://news.cision.com/husqvarna-ab/r/interim-report-january---september-2019,c2937676

The following files are available for download:

https://mb.cision.com/Main/996/2937676/1127041.pdf

Husqvarna Group Interim report Q3 2019 (PDF)

SOURCE Husqvarna AB