Like most companies, Swedish based Husqvarna had a trying year in 2009. Market conditions were weaker than 2008, with retailers being hesitant to increase stocks.
Net sales - US$ 4,788 m or € 3,324 m (SEK 34,074 m), declining by 8% compared to 2008
* Consumer Products - US$ 3,186 m or € 2,211 m (SEK 22,672 m)
* Professional Products - US$ 1,602 m or € 1,112 m (SEK 11,402 m)
Operating income (exc restructuring costs) - US$ 283 m or € 196 m (SEK 2,012 m)
* Consumer Products - US$ 101 m or € 70 m (SEK 719 m)
* Professional Products - US$ 205 m or € 142 m (SEK 1,457 m)
Income for the year - US$ 127 m or € 88 m (SEK 903 m)
Operating cash flow - US$ 525 m or € 365 m (SEK 3,737 m)
(Note that the results were presented in SEK. Logging-on converted SEK to US$ and Euro using the conversion rates as at 31 December 2009).
It is interesting to note from the figures above, that professional products only make up 33% of sales, but are responsible for 72% of the operating income! In the professional product category, sales declined across all product areas, with construction being the worst segment affected. Forestry also declined sharply due to lower volumes in key markets such as Russia, USA and Eastern Europe. However, the operating margin for forestry improved due to rationalisation of their chainsaw production and many new products.
Husqvarna expects the first quarter of 2010 to remain challenging due to retailers still being “cautious to build up inventories”. Source: www.husqvarna.com