Outdoor power equipment maker Husqvarna reported 1Q net sales of SEK 9,082 million (approx. US$1,245 million), down from 11,152 million (approx. US$1,528 million) in 1Q 2009.
Operating income for the Stockholm-based company was SEK 778 million (approx. US$107 million), down from 786 million (approx. US$107 million). Income for the period was SEK 535 million (approx. US$73 million), up from 464 million (approx. US$64 million).
"The year had a slow start due to an unusually long and cold winter in several markets," said Husqvarna President and CEO Magnus Yngen. "The weather affected the sell-in for the garden season and activities in the construction market. However, sales picked up and increased considerably towards the end of the quarter.
Yngen said the trade continued the cautious inventory management that began during the recession. "Inventory in the trade is estimated to be slightly lower than a year ago and retailers are likely to remain cautious."
Yngen said the introduction of the company's new global organization will be an important step for improving internal efficiency. "The organization is now in place and several initiatives relating to supply chain, products, and marketing and sales are in progress," he said. "The initiatives are already paying off, improving efficiency, and reducing costs. The Group's operating margin improved and income was in line with the first quarter of 2009, despite the drop in sales."
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