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Husqvarna eyes organic sales growth of 3-5% as part of new financial targets (updated)

Adds details on previous targets, cost-cutting programme in paragraphs 3-6

Dec 10 (Reuters) - Husqvarna HUSQb.ST targets average annual organic sales growth of 3% to 5% over a business cycle, the garden equipment maker said on Wednesday ahead of its investor day presentations.

The group also targets an operating margin above 10% and a return on capital employed of 15% through the cycle, timeline of which is not specified. It reiterated its policy of paying out 40% of net income as dividends.

Its earlier financial goals, announced in 2021, were for yearly organic sales growth of 5% and an operating margin of 13%.

Husqvarna said it would carry out a cost-cutting programme between 2026 and 2030 to enhance the efficiency of its operations.

The plan is expected to result in annual run-rate savings of 4 billion Swedish crowns ($427 million) by the end of 2030. During the process, Husqvarna's reported operating income will be impacted by non-recurring costs totalling 1.5 billion crowns, it said.

($1 = 9.3672 Swedish crowns)

(Reporting by Agnieszka Olenska and Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak)

((Elviira.luoma@thomsonreuters.com, agnieszka.olenska@thomsonreuters.com))

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