Husqvarna group sales rose 11% in the first half of 2009 to SEK 22,633 million (approx. US$2.921 billion), compared to 20,386 million (approx. US$2.631 billion) in the first half of 2008. Adjusted for acquisitions and changes in exchange rates, net sales declined in the first half by 9% and operating income decreased by 25%.
Sales in North America increased for the third consecutive quarter, while the Gardena-branded irrigation products had a strong quarter. Net sales for the second quarter increased by 11% to SEK 11,481 million (approx. US$1.482 billion). Adjusted for acquisitions and changes in exchange rates, net sales decreased by 7% and operating income declined by 16%.
Magnus Yngen, president and CEO of Husqvarna, says, “Overall, we strengthened our market position. Operating income for the quarter declined by 16%, but margin remained at a high level. The decline in operating income refers to lower volumes, particularly for Professional Products, as well as a less favorable product/country mix. Pricing in the quarter remained stable in both Europe and North America. Lower costs for materials also contributed positively to income. We are now seeing that implemented cost and capacity reductions are gradually starting to take effect. Cash flow showed a continued positive trend, and our efforts to reduce inventories and accounts receivables have paid-off."
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