Husqvarna’s 1Q 2019 net sales amounted to SEK 13,651 million ($1.5 million), an increase by 4% adjusted for changes in exchange rates, as the company says in the press release received by Lesprom Network.
Operating income for the 1Q increased to SEK 1,644 million, including SEK -42 million ($4.5 million) of restructuring related expenses. Operating income, excluding restructuring related expenses, increased to SEK 1,686 million.
The higher result was primarily related to net sales growth, improved product mix and cost savings, partly offset by higher costs for raw materials and tariffs. In addition, investments in strategic growth initiatives to strengthen market positions and drive long-term profitable growth continued. Changes in exchange rates contributed positively with approximately SEK 165 million ($17.5 million) compared with last year.
Operating margin improved to 12% and to 12.3% excluding restructuring related expenses.
Kai Wärn, President and CEO, said: “The year has started well, driven by good sell-in volumes to our trade partners. Net sales for the Group increased by 4% in the 1Q, adjusted for changes in exchange rates. All divisions delivered growth in core categories and prioritized growth segments. The exited Consumer Brands business had a negative effect of some 3 percentage points on net sales for the Group in the quarter, currency adjusted.”
Husqvarna Group is a global leading producer of outdoor power products and innovative solutions for forest, park and garden care.
