Sweden's Husqvarna warns of weaker sales, operating loss in Q4

Husqvarna AB

10/12/2024 06:35

COPENHAGEN, Dec 10 (Reuters) - Husqvarna  HUSQb.ST 
expects its organic sales for the fourth quarter to decline
year-on-year due to challenging market conditions, particularly
in North America, as well as an unfavourable product mix, the
Swedish group said late on Monday.
    Husqvarna now expects organic sales in the quarter to fall
by 5% from a year ago, resulting in an operating loss of between
700 million and 800 million Swedish crowns ($64.2 million-$73.4
million), the garden equipment and tools maker said.
    "I am disappointed in our continued negative development in
the fourth quarter," CEO Pavel Hajman said in a statement.
    "We continue to execute on our previously announced
cost-saving initiatives and prepare for the 2025 gardening
season with strong product launches," he added.
    Husqvarna said its sales were also impacted by retail
partners and servicing dealers focused on reducing their
inventory levels, resulting in lower production volumes.
  
($1 = 10.9048 Swedish crowns)

 (Reporting by Louise Breusch Rasmussen, editing by Terje
Solsvik)
 ((Louisebreusch.rasmussen@tr.com; +45 21 27 97 79;))