Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Problems at Orangeburg Hurt Husqvarna's 1Q Results
Apr 11, 2011
 Printable format
 Email this Article
 Search

Husqvarna's Orangeburg, SC riding mower manufacturing campus has had significant problems in recent months, and those problems had a direct impact on the company's bottom line in the first quarter of 2011.

Orangeburg is dealing with an "increase in material complexity" at the same time it is trying to assimilate the production from the recently closed Beatrice, NE plant and accommodate an ambitious number of new product launches.

Husqvarna said it has made fixes and production did increase gradually during the first quarter - but so did the costs associated with this fixes. Production output should increase into the second quarter but higher manufacturing costs will be higher throughout the season.

Husqvarna is one of the world's biggest makers of outdoor power equipment and the Orangeburg plant primarily produces riding lawn mowers for the North American market; some exports go to Europe and other global markets.

Husqvarna said first quarter 2011 sales and operating income for the Americas were lower than had been expected as a result of the Orangeburg problems.

For the Husqvarna Group as a whole, adjusted sales were up 6% and adjusted operating income was up 7% when compared to 1Q 2010. Net sales for the group in 1Q 2011 were SEK 8,774 million (approx. US$1400 million) compared to SEK 9,082 million in 1Q 2010. Adjusted for exchange rates sales increased by 6% or by approximately SEK 490 million. Operating income for the group amounts to SEK 662 million, compared to 778 million in 1Q 2010. Adjusted for exchange rates income increased by 7% or approximately SEK50 million.

Net sales for Europe & Asia/Pacific amounted to SEK 4,541 million in 1Q 2011, compared to SEK 4,459 million in 1Q 2010. Adjusted sales increased 10% or by approximately SEK 400 million. Operating income for Europe & Asia/Pacific was SEK 815 million, compared to last year's SEK 732 million. Adjusted operating income increased 32% or by approximately SEK 200 million.

Net sales for the Americas were SEK 3,588 million in 1Q 2011, down from SEK 4,028 million in 1Q 2010. Adjusted for exchange rate effects sales were flat. Operating income for Americas amounts to SEK -94 million in 1Q 2011, compared to SEK 81 million in 1Q 2010. Adjusted for exchange rates, income declined by approximately SEK -175 million.

Back to Daily News

 

Daily News

...........................................................

Nov 21, 2014: Electrolux: new U.S. fridge efficiency requirements are more complex than anticipated

Nov 21, 2014: Whirlpool brand launches Perceptions of Care video

Nov 21, 2014: Hon Hai 3Q profit $1 billion

Nov 21, 2014: Environmental Product Declarations for aluminum product types released

Nov 20, 2014: Report: Drop in affluents' consumer confidence may foretell signal trouble ahead for some retailers

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows