Year-end report 2011 Hans Linnarson, President and CEO: “2011 was a challenging year for Husqvarna. We experienced operational difficulties in one of our largest production facilities, which had a substantial negative impact on the Group’s operating income. Despite the issues, I am pleased that our sales, adjusted for changes in exchange rates, increased and we maintained our position as global leader. Market shares in key areas remained stable and in some areas they even increased, such as for professional riders, robotic lawn mowers and construction equipment. In Europe & Asia/Pacific, the operating margin remained on a high level, almost 14 percent. The positive development for Construction continued, as sales, operating income and margin increased. InAmericas, our North American operations remained challenging. Net sales recovered in the second half of the year, but operating income did not recover at the same pace. We are working to improve the margin in ourUSoperations through sustainable measures to improve mix and efficiency. Due to normal seasonality, the fourth quarter is the smallest of the year for the Group. Sales gradually improved and for the full quarter, sales increased for all business areas while the operating profit was negatively impacted by several non-recurring items. The outlook regarding consumer demand is difficult to asses. As we have communicated earlier, our listings with major retail customers are unchanged compared with 2011, but with a slightly improved mix. I view this accomplishment as a confirmation of our strategy to consistently invest in innovative quality products under strong brands. The ramp-up of production ahead of the garden season has been positive and we are now delivering a high level of service and delivery reliability – our top priorities for 2012.” Fourth quarter · Net sales for the Group increased by 4% to SEK 4,994m (4,794). Adjusted for exchange rate effects, net sales increased by 5%. · Operating income amounted to SEK -236m (-63). Changes in exchange rates had a negative effect of SEK -47m and costs directly related to production disturbances amounted to SEK -30m. · Operating income also includes other non-recurring items with a total net negative effect of SEK -55m. · Hans Linnarson was appointed President and CEO. Full-year · Net sales for the Group, adjusted for exchange rate effects, increased by 2%. · Strengthened market position for Construction and maintained for forest and garden products. · Operating income amounted to SEK 1,551m (2,445). Changes in exchange rates had a negative effect of SEK -382m and costs directly related to production disturbances amounted to SEK -398m. · The Board proposes a dividend of SEK 1.50 (1.50) per share for 2011. Telephone conference A telephone conference hosted by Hans Linnarson, president and CEO, and Ulf Liljedahl, CFO, will be held at 15:30CET on February 23, 2012. To participate, please call +46 (0)8 5052 0114 or +44 (0)20 7038 9550 ten minutes prior to the start of the conference. The conference call will also be audio cast live. To participate in the audio cast, log on to www.husqvarnagroup.com/ir (http://www.husqvarna.com/ir). A replay of the telephone conference will be available at www.husqvarnagroup.com/ir (http://www.husqvarna.com/ir) later the same day. Contacts Ulf Liljedahl, CFO, +46 8 738 84 42 Tobias Norrby, Investor Relations Manager, +46 8 738 83 35 Husqvarna Press Hotline, +46 8 738 70 80 This interim report comprises information which Husqvarna is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 13:00 CET on February 23, 2012.
Year-end report 2011
| Source: Husqvarna AB
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