Husqvarna to shift production from Europe to Asia as third quarter turns to loss

Husqvarna AB

Wed 06:51

Oct 21 (Reuters) - Swedish garden equipment maker Husqvarna HUSQb.ST said on Wednesday it would shift production of some battery-powered handheld products from Europe to Asia, as its third-quarter operating result swung to a loss.
Husqvarna had begun shifting production of certain products from China to European factories last year to cushion the impact of US import tariffs, as part of a wider supply-chain overhaul.
It said the transfer would involve its own Asian facilities and external manufacturing partners, as it seeks to cut costs and improve competitiveness
Husqvarna did not specify which European factories would be affected, how many jobs were involved or when the transfer would take place
Organic sales fell 5% in the third quarter, weighed down by weak European demand and widespread drought
Husqvarna said its robotic lawnmower business performed below expectations, hurt by competition and elevated retailer inventories in Europe
Operating loss excluding items affecting comparability was 246 million Swedish crowns ($24.8 million), versus a profit of 140 million crowns a year ago
It will introduce targeted price hikes and further supply-chain measures to offset rising raw material and logistics costs
($1 = 9.9096 Swedish crowns)

(Reporting by Jesus Calero in Gdansk, editing by Milla Nissi-Prussak)
((jesus.calero@thomsonreuters.com))