Company update

Company update

 

Continued economic uncertainty

Husqvarna is a consumer oriented company in the discretionary capital
goods industry, and has been negatively affected by the slowdown in the
global consumer demand and the uncertain economic environment in
combination with unfavorable weather. Due to the demand situation, a
hiring freeze has been implemented for the entire Group until further
notice. The fourth quarter which normally represents a small volume for
the company is expected to continue to suffer from poor economic
conditions.

Confirming the outlook in the Q2 report

Confirming the outlook in the second quarter report 2011, the total
Group net sales have declined. Sales for the third quarter are estimated
to around SEK 6,200m (6,907), which is approximately 5% lower compared
with the corresponding quarter 2010 adjusted for ex-change rate effects.

Operating income for the third quarter, which due to normal seasonality
represents only a small share of full-year earnings, is estimated in the
range of SEK 100m (411). Costs related to the production disturbances in
Orangeburg amounts to approximately SEK 45m and costs related to the
termination of the former CEO's contract amounts to SEK 21m and are
included in the estimated third quarter results.

As commented in the second quarter report, market demand weakened
towards the end of the quarter. The weakness has continued. Operating
income for the third quarter has also been impacted mainly by an
unfavorable mix and higher costs.

Prepared for the 2012 season in North America

Extensive efforts to eliminate the supply chain disturbances in the
Orangeburg production facility have progressed successfully. In order to
ensure successful delivery of committed volumes, the ramp up of
pre-season production has started earlier than previous year.

The Group's product range listings with major retailers in the North
American market for 2012, although not yet finalized, are projected to
be unchanged versus 2011, however with a somewhat new balance among the
different retailers.
Further information

Further information will be provided in Husqvarna's interim report for
the third quarter 2011. The report will, as earlier announced, be
published on October 20, 2011 at 08:00 CET. A conference call and
analyst meeting will be held the same day at 11:00 CET. Dial-in number
+46 (0) 8 5052 0110 (Sweden) or +44 (0)20 7162 0077 (UK).

Husqvarna Press Hotline at +46 8 738 70 80 or press@husqvarna.se

The above information has been made public in accordance with the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was published at 15:00on September26, 2011.