STOCKHOLM, Feb. 5, 2019 /PRNewswire/ --
Kai Wärn, President and CEO:
"The result for the seasonally small fourth quarter was in line
with our expectations, impacted by the effects from the challenging
conditions earlier in the year. Net sales for the Group, adjusted
for changes in exchange rates, were flat at SEK 6,470m. Higher costs for raw materials,
tariffs and logistics, as well as continued investments in our
strategic growth initiatives had a negative impact on our results.
In total, the Group's operating profit, excluding restructuring
related expenses, amounted to SEK
-282m (-70) in the fourth quarter.
We took several important strategic steps during 2018, building
a strong platform for future profitable growth. We dissolved the
Consumer Brands Division and kept the parts that have strategic
relevance for the Group and integrated them into the Husqvarna and
Gardena divisions. We have adjusted our manufacturing capacity and
central resources to reflect exited business volumes, thus creating
a less complex and more cost efficient and focused Group. Costs and
savings for the restructuring are in line with our previously
communicated levels. Our full attention is now on profitable growth
opportunities in the Husqvarna, Gardena and Construction divisions
in areas such as robotic lawn mowers, forestry, digitalization and
battery-powered products.
For the full-year 2018 Group net sales increased by 2%, adjusted
for changes in exchange rates, to
SEK 41,085m, while operating income,
excluding restructuring related expenses, decreased to SEK 3,241m (3,790). The lawn and garden season
was challenging. The negative effects of the late spring followed
by a very warm, long and dry summer in Central and Northern Europe were substantial for the
Husqvarna Division. In contrast, the dry weather increased demand
for Gardena's watering products, supporting an improved operating
result. Operating income for the Consumer Brands Division decreased
while the Construction Division reported higher operating results
including good progress with our acquisitions. The Board of
Directors proposes an unchanged dividend of SEK 2.25 (2.25).
For 2019, our top priority is to get back on the profitability
improvement trajectory. We have a strong product portfolio going
into the season, with exciting launches such as new robotic lawn
mowers, watering systems, chainsaws and new solutions from the
Construction Division. We have taken steps to increase prices to
compensate both for higher raw material costs and for tariffs. In
addition we will deliver the committed cost reductions related to
our restructuring programme and will restore a balance between the
internal efficiency and savings actions with our investments in
profitable growth initiatives."
Fourth quarter 2018
- Net sales amounted to SEK 6,470m
(6,130). Currency adjusted* net sales remained unchanged.
- Operating income amounted to SEK
-1,104m (-70) and to SEK -282m
(-70) excluding restructuring related expenses of SEK -822m (0).
- Earnings per share after dilution amounted to SEK -1.61 (0.10).
January – December 2018
- Net sales amounted to SEK 41,085m
(39,394), corresponding to a currency adjusted* increase of
2%.
- Operating income amounted to SEK
2,070m (3,790) and to SEK
3,241m (3,790) excluding restructuring related expenses of
SEK -1,171m (0).
- Earnings per share after dilution amounted to SEK 2.12 (4.62).
- The Board of Directors proposes a dividend of SEK 2.25 per share (2.25).
Telephone Conference
A combined press and telephone conference, hosted by Kai Wärn,
President and CEO, and Glen Instone,
CFO, will be held at Husqvarna Group's office, Regeringsgatan 28,
Stockholm at 10:00 CET on February 5,
2019. To participate, please dial +46 (0) 8 566 184 30
(Sweden) or +44 (0) 8 448
228 902 (UK) ten minutes prior to the start of the conference.
Conference ID: Husqvarna or 7996846#. The conference call will also
be audio cast live on www.husqvarnagroup.com/ir. A replay will be
available later the same day.
This press release contains insider information that
Husqvarna AB is required to disclose under the EU Market Abuse
Regulation and the Securities Markets Act. The information was
submitted for publication, through the contact person set out
above, at 08.00 CET on February 5,
2019.
Contacts:
Glen
Instone,
CFO,
Senior Vice President, Finance, IR & Communication,
+46-72-716-5032
Johan Andersson,
Director, Group Corporate Communications and Investor
Relations,
+46-702-100-451
This information was brought to you by Cision
http://news.cision.com
http://news.cision.com/husqvarna-ab/r/year-end-report-2018,c2731934
The following files are available for download:
https://mb.cision.com/Main/996/2731934/985729.pdf
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Interim report Q4
2018 Husqvarna Group
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SOURCE Husqvarna AB