Interim report January - March 2012

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 (http://www.husqvarna.com/ir). A replay will be
available at www.husqvarnagroup.com/ir (http://www.husqvarna.com/ir) later the
same day.
Contacts
Ulf Liljedahl, CFO, +46 8 738 94 42
Tobias Norrby, Investor Relations
Manager, +46 8 738 93 35
Husqvarna Press Hotline, +46 8 738 90 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 08:00 CET on April 26,
2012.

Husqvarna Group
The Husqvarna Group is the world’s largest producer of
outdoor power products including chainsaws, trimmers, lawn mowers and garden
tractors. The Group is also the European leader in consumer watering products
and one of the world leaders in cutting equipment and diamond tools for the
construction and stone industries. The product offering includes products for
both consumers and professional users. The Group’s products are sold via dealers
and retailers in more than 100 countries. Net sales in 2011 amounted to SEK 30
billion, and the average number of employees was approximately 15,700.