Husqvarna AB: Husqvarna Group Capital Markets Day
STOCKHOLM -- February 14, 2013
Husqvarna Group (STO:HUSQB) today holds its capital markets day, with
presentations to the financial community and media. The capital markets day
includes presentations by the Group’s CEO, CFO, the business area heads and
other members of Group Management, with special focus on strategic priorities
At the event, Hans Linnarson, President and CEO, comments on the Group’s
financial targets. Three of the four targets remain; to achieve an operating
margin of more than 10% over the course of a business cycle, the seasonally
adjusted net debt in relation to EBITDA should not exceed a multiple of 2.5 in
the long term, and that the dividend shall normally exceed 40% of income for
the year. The Group will no longer have a financial target for sales growth.
Medium term, initiatives to improve the Group’s operating margin will have
higher priority than growth. The operating margin will be supported by growth
in selective areas.
The Group aims to strengthen the operating margin by a sustainable improvement
of the gross margin, enabled by reduction of product cost and complexity, as
well as lower cost to serve and sales channel and product mix improvement. To
further cement the Group’s leading position in the global chainsaw market,
around SEK 1bn will be invested in core technologies, including manufacturing
of saw chain (see separate press release dated February 13, 2013).
It is also communicated that the near term operating environment is expected
to remain challenging, especially in the European markets. Due to the
macroeconomic uncertainty, demand in Europe is expected to remain soft.
“The Husqvarna Group has a unique set of assets; dedicated employees, strong
global brands, a competitive product offering with leading global market
positions and distribution through leading retailers and more than 25,000
independent dealers. We will continue to build on these strong assets,
investing in core technologies to develop products with market leading
innovative features. Nonetheless, we also need to manage our resources
carefully in order for us to reach our targets. Mid-term we will therefore
focus on initiatives to reduce product cost and complexity to ensure
sustainable margin improvement,” says Hans Linnarson, President and CEO of
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 8.30 on February 14, 2013.
Husqvarna Group is the world’s largest producer of outdoor power products
including robotic lawn mowers, garden tractors, chainsaws and trimmers. 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 Group’s products and solutions are sold via dealers and
retailers to both consumers and professional users in more than 100 countries.
Net sales in 2012 amounted to SEK 31 billion, and the Group had 15,400
employees on average in more than 40 countries.
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