April 24 (Bloomberg) -- Husqvarna AB, the world’s biggest maker of powered garden tools, rose to a three-year high after reporting first-quarter profit that beat analyst estimates as European and North American markets improved.
Husqvarna jumped as much as 11 percent to 51.75 kronor, the highest intraday price since April 2011, and was trading up 8.8 percent at 50.80 kronor as of 10:37 a.m. in Stockholm. Volume exceeded the three-month daily average by 51 percent.
Earnings before interest and taxes surged 31 percent from a year earlier to 903 million kronor ($138 million), the 325-year-old maker of lawnmowers, hedge trimmers and chain saws said. That beat the 836 million-krona average of nine analyst estimates compiled by Bloomberg. Sales advanced 7.3 percent to 9.69 billion kronor. The operating margin widened to 9.3 percent from 7.6 percent. Warm early spring weather in Europe and economic growth in the U.S. helped profit, the company said.
“Easy comparisons and favorable weather conditions in Europe supported year-on-year higher sales and Ebit in the first quarter,” analysts at Nordea Bank AB said in a note to clients today. “While sales were broadly in line, the margin was even stronger than expected, and especially Americas and construction stood out positively.”
To contact the reporter on this story: Niklas Magnusson in Stockholm at email@example.com
To contact the editors responsible for this story: David Risser at firstname.lastname@example.org Tom Lavell, Thomas Mulier