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Husqvarna Group Q2 net sales 8% higher

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Staff Writer | July 18, 2017
Husqvarna Group net sales in the second quarter was 8% higher adjusted for currency and increased in all divisions.
Husqvarna Group    Operating income increased 16%
Operating income increased 16% to SEK 2,002m (1,729) due to the higher volume and a positive currency impact which was partially offset by higher costs for company's growth initiatives.

The operating margin for the Group continued to improve and was 15.3% (15.0) in the quarter and 9.6% (8.6) for the rolling twelve month period.

Sales in the Husqvarna Division increased 5% adjusted for currency, and the operating income rose 15% to SEK 1,186m (1,031).

Europe continued as the growth driver largely as a result of good growth in battery-powered products including robotic lawn mowers.

The Gardena Division added another quarter of strong performance. Sales increased with 11% adjusted for currency with growth in all product categories, particularly in watering. Operating income rose 26% to 565m (449).

From a sales perspective Consumer Brands also had a favorable development with top-line growth of 9%.

Operating income however declined to SEK 80m (147), reflecting a challenging and competitive business environment in the North American retail market, as well as unfavorable product and regional mix.

To further improve efficiency in the supply chain footprint, the quarter was impacted by one-time cost items of close to SEK 30m.

The Construction Division delivered another strong quarter, with currency adjusted sales growing 16%, whereof organic growth was 2%. Operating income increased 30% to SEK 233m (179).

The acquisition of HTC, the floor grinding solutions market leader was finalized in May, further strengthening company's product portfolio and ability to better serve company's customers in the prioritized concrete surfaces and floors segment.