Can this be true???

[04ultra]

Husqvarna

Financial reports
23 October, 2009 09:00
Interim report January - September 2009
Magnus Yngen, President and CEO:

"Market demand in the quarter was substantially weaker than in the previous year in all product areas. Adjusted for changes in exchange rates and acquisitions, Group sales declined by 11% and operating income by 11% exclusive of the restructuring charge. The decline in income resulted mainly from lower volumes and a less favorable product and country mix. Lower material costs had a positive effect, as did savings from previously implemented cost cutting measures. Despite a difficult market environment, income for Professional Products remained at a high level. Forestry reported largely unchanged income with a higher margin, while Construction showed a decline.

Cash flow for the nine month period was strong as our efforts to reduce working capital have paid off.

In line with our strategic plan, we intend to implement a number of structural changes to improve internal efficiency. The total cost for these measures is estimated at approx. SEK 400m, of which SEK 59m was charged against operating income in the third quarter. The remaining part, i.e. approx. SEK 340m, is expected to be charged against operating income in the fourth quarter of 2009. The restructuring refers mainly to consolidation of production in Sweden and the US, and to changes within the sales organization. Annual savings from all these activities are expected to amount to approximately SEK 400m, and will be generated gradually from the second half of 2010 with full effect as of the start of 2012.

· Net sales for the first nine months rose by 8% to SEK 29,342m (27,216). Adjusted for acquisitions and changes in exchange rates, net sales declined by 9%. Operating income decreased by 27% to SEK 2,075m (2,833). Income for the period was SEK 1,355m (1,706), corresponding to SEK 2.50 (3.74) per share.

· Net sales for the third quarter declined by 2% to SEK 6,709m (6,830). Adjusted for acquisitions and changes in exchange rates, net sales declined by 11%.

· Operating income for the third quarter includes a restructuring charge of SEK 59m (15), referring to relocation of production from Italy to China.

· Excluding the above restructuring, operating income for the third quarter declined by 29% to SEK 232m (325).

· The decline in operating income in the quarter, exclusive of restructuring refers mainly to Consumer Products. Income for Professional Products also declined, but margin was unchanged.

PRESS AND TELEPHONE CONFERENCE

A combined press and telephone conference will be held at 13.30 CET on 23 October 2009 at Scandic Anglais, Humlegårdsgatan 23, Stockholm. To participate in the telephone conference, please call +46 (0)8 5052 0110 or +44 (0) 20 7162 0077. A replay of the telephone conference will be available at www.husqvarna.com/ir.

CONTACTS

Bernt Ingman, Chief Financial Officer, at +46 3614 65 05
Åsa Stenqvist, Head of Corporate Communications and Investor Relations, at +46 8 738 64 94
Tobias Norrby, Investor Relations Manager, at +46 8 738 83 35
Husqvarna Press Hotline, at +46 8 738 70 80.

This interim report comprises information which Husqvarna is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 09.00 CET on 23 October 2009.

 

[04ultra]

Husqvarna

Press releases
Restructuring for improved competitiveness
23 October, 2009 09:00
Husqvarna intends to implement a number of structural changes in order to reduce costs and improve the Group's competitiveness. The measures are aimed at eliminating overlap and duplication within production and administration, and involve consolidation of production in Sweden and the US, and of the sales organization in Europe and Asia/Pacific.

The changes are scheduled to be implemented in 2009-2010 and will affect approximately 1,200 employees. As a result of an increase in the number of employees in other production facilities in Poland and China, the net reduction in the number of employees is estimated at 400.

The total cost for the restructuring measures is estimated at approximately SEK 400m, of which SEK 59m was charged against operating income in the third quarter of 2009. The charge in the third quarter refers to relocation of production of chainsaws and other handheld products from the plant in Valmadrera, Italy to the plant in Shanghai, China. Approximately SEK 10m of this amount refers to non-cash items.

The remaining part of the restructuring cost, i.e. approximately SEK 340m, is expected to be charged against operating income in the fourth quarter of 2009. Approximately SEK 170m of this amount refers to non-cash items.

Capital expenditure related to the restructuring is expected to amount to approximately SEK 400m, of which a new plant in Poland will account for approximately SEK 250m.

Annual savings from all the above mentioned activities are expected to amount to approximately SEK 400m, and will be generated gradually from the second half of 2010 with full effect as of the start of 2012.

The planned restructuring activities mainly include:

· Relocation of production of riders to a new plant in Poland, and closure of the Rider plant in Huskvarna, Sweden.

· Relocation of production in Tandsbyn, Sweden to Huskvarna, and closure of the plant in Tandsbyn.

· Relocation of lawn-mower production in Höör, Sweden, to the new plant in Poland and intention to divest the remaining operation in Höör.

· Relocation of Construction's operation in Jönköping, Sweden to Huskvarna, and personnel cutbacks within Construction in Spain.

· Intention to divest the plant in Ödeshög, Sweden which produces components for chainsaws, riders and other products.

· Relocation of production of chainsaws and other handheld products in USA from DeQueen, AR to the plant in Nashville, AR and intention to use the facility as a warehouse.

· Closure of the office in Augusta, GA, USA and transfer to Charlotte, NC, USA, which will be the regional head office.

· Consolidation of sales organization in Europe and Asia/Pacific, including establishment of a single sales office for the Nordic region in Huskvarna, Sweden.

"I regret that we have to implement measures which will affect so many employees. Husqvarna's production is too fragmented with a number of small plants, which means inefficient utilization of capital and resources. We also need to finalize the integration of acquired units and realize anticipated synergies. These changes are necessary in order to secure the Group's long-term competitiveness", says Magnus Yngen, CEO and President.

The above changes are subject to requisite approval or negotiations with respective unions.

For additional information, please contact

Åsa Stenqvist, Senior Vice President, Communications and Investor Relations, at +46 8 738 64 94
Bernt Ingman, Chief Financial Officer, at +46 36 14 65 05
Husqvarna Press Hotline at +46 8 738 70 80 or [email protected]

Husqvarna is the world's largest producer of lawn mowers, chainsaws and portable petrol-powered garden equipment such as trimmers and blowers. The Group is also a world leader in diamond tools and cutting equipment for the construction and stone industries. Net sales in 2008 were SEK 32.3 billion and the average number of employees was 15,700. For more information, visit www.husqvarna.com.

The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 09.00 CET on 23 October 2009.

...



Seems the boat is still sinking even after the layoffs last year...

400 are losing their jobs for sure with another 1200 in limbo

 

[THALL10326]

Ouch, not good there...

 

[Tzed250]

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Looks like they were spread too thin.


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[dingeryote]

Moving Italian handheld production to frickin' Shanghai China...

It's what I got out of all that.

Swell....
Now I gotta buy more saws before Husky is all "Consolodated" into more Chineese garbage.

The question is who will be more Chineese first...
Stihl has been sprinting in that direction as well.

Dolmar? The last real saw on the planet? It's looking like it could happen.

Damnit!!!!!!!!!

Stay safe!
Dingeryote

 

[MS460WOODCHUCK]

Sawtroll will have the answer 4 them!!

 

[04ultra]

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Looks like they were spread too thin.


.

Could be ...............................

 

[Jacob J.]

Stihl has had a manufacturing facility in China since 1987 or so...

 

[Austin1]

By a Dolmar! okay I am biased love my Jreds but can't stop using the Dolmar.
Most timber cutting around here is done by harvesters chainsaws play only a small part in selective no impact logging like cutting down beetle killed trees. I still see more Husky's than Stihls and I think I have the only Dolmar! For my small amount of firewood I cut. The odd man out is me.
I don't think Husky /Jred will be out of the game any time soon. Wish to see some Dolmars out here.

 

[04ultra]

Looks like sales are down .....




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[THALL10326]

Looks like sales are down .....




.

Sales are indeed down worldwide for all saw makers. Was talking to my buddy at Stihl awhile back. Though Stihl hasn't laid anyone off they have cut out overtime altogether. I don't think any maker will achieve the same numbers they did in 2008. The decline started in the 3rd quarter of 08 bigtime for everyone.

There is a trend happening in the USA though, seems more and more people are heading back to the dealers for their small ope now. The numbers suggest people do indeed want service after the sale. The out the door, see ya later deal is fading. This trend is being watched very closely by you guessed it, Husky and Stihl.

 

[woodbooga]

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Looks like they were spread too thin.

That was my thought. Figured the sewing machine division was an albatross to the overall operation. Til I came acrosst this...

The charge in the third quarter refers to relocation of production of chainsaws and other handheld products from the plant in Valmadrera, Italy to the plant in Shanghai, China.

 

[04ultra]

Wonder if the latest push from a few AS members for the 346NE will help pull them out of there sick spell........








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[THALL10326]

Wonder if the latest push from a few AS members for the 346NE will help pull them out of there sick spell........








.

LOLOLOLOLOL, that was a joke I'm sure and a good one,LOLOLOL

Its going to take a helluva lot more than a saw and AS to help out Husky, Stihl or anyone else. Times are tuff. I was conversing with one of my Stihl buddies not too long ago about Husky and their hardship right now. He goes man we really hate to see that happen to anyone. I thought hmmmmmm better them than us. I'm old school I guess, kickem while they're down. Even so I reckon thats no way to be for it could always be the other way around.
2010 will be the clincher. EPA will step up its enforcements and make it harder and harder for companies to comply. Those that haven't got their engines cleaned up are really gonna be on the brink of out of business in the USA.

 

[04ultra]

LOLOLOLOLOL, that was a joke I'm sure and a good one,LOLOLOL

Its going to take a helluva lot more than a saw and AS to help out Husky, Stihl or anyone else. Times are tuff. I was conversing with one of my Stihl buddies not too long ago about Husky and their hardship right now. He goes man we really hate to see that happen to anyone. I thought hmmmmmm better them than us. I'm old school I guess, kickem while they're down. Even so I reckon thats no way to be for it could always be the other way around.
2010 will be the clincher. EPA will step up its enforcements and make it harder and harder for companies to comply. Those that haven't got their engines cleaned up are really gonna be on the brink of out of business in the USA.

My only local Husky dealers gone for 5 months now .......Now its a 16 mile drive to a dealer that has very little stock or call too JSE .....


I did get a deal on two burnt up saws from the 16 mile away shop.....

 

[THALL10326]

My only local Husky dealers gone for 5 months now .......Now its a 16 mile drive to a dealer that has very little stock or call too JSE .....


I did get a deal on two burnt up saws from the 16 mile away shop.....

Well from what I can see Husky is revamping its entire operation. They are making a awful lot of cost cutting moves getting rid of small clusters all over the place and tightening up the entire company. They don't have Elux's billions to ride out any storms anymore so they're doing what they have to do to stay alive. My take is Elux really screwed Husky over bigtime. The way the marketed them for years and then spun them off makes it hard for Husky to go back to the way they were. I've never really figured out how Elux ever got their hands on Husqvarna. I thought Husky was a very stable operation. Why they sold to Elux back in the day is beyond me..

 

[Trigger-Time]

It's been a year, Any new reports out?





TT

 

[willysmn]

Husky financial situation

Well from what I can see Husky is revamping its entire operation. They are making a awful lot of cost cutting moves getting rid of small clusters all over the place and tightening up the entire company. They don't have Elux's billions to ride out any storms anymore so they're doing what they have to do to stay alive. My take is Elux really screwed Husky over bigtime. The way the marketed them for years and then spun them off makes it hard for Husky to go back to the way they were. I've never really figured out how Elux ever got their hands on Husqvarna. I thought Husky was a very stable operation. Why they sold to Elux back in the day is beyond me..

What is the history of the spin off? And how doew that fit into the "sell in Big Box stores" decision and cancel local dealers mentality?
Was the big box stores thing after the spin off? Was the expansion of products coincident with the spin off?

Most well run companies that sell to a conglomerate don't do well, it seems, ie McCulloch and Homelite and others. The focus on product is just lost and exkpansion is found. R&D doesn't survive. Money men rule too much.

 

[Trigger-Time]

Report in PDF

 

[jrr344]

Poulan (husqvarna) have been in china for years.