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Husqvarna operating income increased, margin improved

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Staff Writer | July 16, 2016
Husqvarna operating income increased with SEK 54m to SEK 1,729m (1,675), including a currency head-wind of close to SEK -170m for the quarter, and the corresponding margin improved to 15% (13.7
Husqvarna   Sales in the Husqvarna Division increased 3 percent
Sales in the Husqvarna Division increased 3% adjusted for currency. Sales developed positively in Europe, primarily driven by a continued strong growth in the market for robotic lawn mowers, balancing the weaker demand in North America.

Operating income increased to SEK 1,031m (1,001) positively affected by higher sales of robotic lawn mowers and operational improvements, which were partly offset by the adverse currency impact and additional costs for growth initiatives.

The Gardena Division added another quarter of solid improvement following the strong first quarter, with sales growing 13% adjusted for currency.

Growth benefitted from channel expansion as well as new product introductions such as the Gardena Smart Garden concept and mobile watering equipment. Operating income for the division rose to SEK 449m (397).

The turn-around of the Consumer Brands Division is proceeding according to plan. Ongoing operational improvements continue to support margin improvement through cost reductions and efficiency enhancements.

However, the progress in the quarter was dampened by weather challenges in North America resulting in substantially lower retail sales, and the currency situation remained unfavorable.

The operating margin improved to 5.5% (4.9) and operating income amounted SEK 147m (178).

The Construction Division continued its path of profitable growth, capitalizing on a market leading portfolio of products and services as well as investments in market and sales structure the recent years.

Growth in the second quarter was 4% adjusted for currency despite a difficult market in the stone industry. Operating income rose to SEK 179m (160) and a corresponding margin of 16.2% (14.6).

The priority for the Group during the remainder of the year will be to offset the currency headwind and finance the profitable growth initiatives by operational improvements.”