Husqvarna Profit Misses Analyst Estimates on Unfavorable WeatherKatarina Gustafsson
Husqvarna AB, the world’s biggest maker of powered garden tools, posted lower first-quarter profit than analysts expected amid unfavorable weather, a continued slowdown in Europe and a strong Swedish krona.
Net income fell 26 percent to 465 Swedish million kronor ($70 million), the company, based in the town of the same name, said in a statement today. Analysts had expected 563 million kronor, according to the average of 10 estimates compiled by Bloomberg.
“We have a continued cautious outlook for demand in Europe, while the outlook for North America remains more positive,” Chief Executive Officer Hans Linnarson said in the statement. He will step down from his post in the middle of this year, the company has said.
The maker of robotic lawn movers, water hoses and chainsaws, said it is on track with plans announced November to reduce its staff to improve profitability and increase flexibility due to the macroeconomic uncertainty in Europe. Husqvarna supplier Briggs & Stratton Corp. last week cut its outlook for fiscal 2013 due to macroeconomic woes and unfavorable weather conditions.
Husqvarna sales decreased to 9.02 billion kronor from 9.81 billion kronor a year earlier and compared with expectations for 9.09 billion kronor.