Husqvarna said net sales pro forma for the first half of 2006 increased to SEK 19.471 billion (approx. U.S. $2.648 billion), compared to SEK 17.610 billion (approx. $2.396 billion) for the same period in 2005. Income for the period pro forma was SEK 1.343 billion (approx. $183 million), or SEK 4.53 (approx. $0.62) per share. This is compared to SEK 1.136 billion (approx. $155 million), or SEK 3.83 (approx. $0.52) per share in the same period in 2005.
The results come from consolidated pro forma financial statements for the Husqvarna Group assuming that it had been established and capitalized as of Jan. 1, 2005. Husqvarna was established and capitalized in May 2006, after separating from appliance maker Electrolux.
Husqvarna said retail sales and consumer demand for garden products during the second quarter were lower than in the previous year in both Europe and North America. Group sales generally showed a more favorable trend than the market on the basis of higher sales to existing customers, as well as an expanded customer base.
Group sales in North America showed a slight decline, primarily in trimmers and leaf blowers, but operating income improved as a result of a better product mix and better production efficiency, despite the negative impact of a lawn tractor recall.
In Europe, consumer demand and retail sales were down due to dry weather at the end of the quarter. Industry shipments as well as group sales were up, leading to higher inventories at the distribution level than in the previous year. Group sales of products under the Husqvarna brand to the dealer channel showed continued good growth. Operating income for operations in rest of the world was unchanged from the previous year.
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