Global outdoor power equipment producer Husqvarna AB said net sales in the second quarter of 2014 increased 8% to SEK 11,045 million (approx. US$1,605 million), up from SEK 10,227 million in the second quarter of 2013. After exchange rate adjustments, net sales were up 7%.
Operating income in 2Q 2014 was up 35% to SEK 1,384 million, from SEK 1,022 million in 2Q 2013. Sales and operating income were higher for all business areas.
"Europe benefitted from positive weather conditions in the second quarter, while North America was challenged by a late spring and high trade inventory situation entering the quarter," said Kai Wärn, Husqvarna President and CEO.
In the Americas, Wärn said operating profit was up 41% to SEK 220 million and the operating margin rose to 5.0% (from 3.7%).
In Europe & Asia/Pacific operating income rose 38% to SEK 1,101 million. Operating margin recovered to 19.1% (from 15.5%), primarily from higher sales volume, from good development within core brands Husqvarna and Gardena, and from development of prioritized product areas like robotic lawn mowers and watering equipment.
A large share of the result improvement is attributable to activities in our Accelerated Improvement Program. The positive signs in the first quarter have all trended into the second quarter; the reduction of direct material costs is sustained and we are driving favorable mix by prioritizing our premium brands and product leadership areas, as well as growth in the dealer channel, especially in the U.S.
to Daily News