COPENHAGEN, Sept 10 (Askume) – Sweden’s Husqvarna (HUSQb.ST) expects third-quarter organic sales to fall 5% year-on-year and operating performance to zero due to tough market conditions and limited consumer spending, it said in a message.
The maker of garden equipment and tools, which reported a 9% drop in second-quarter sales in July, is accelerating a cost-savings program and will outline new measures when it releases third-quarter earnings on Oct. 23.
Chief Executive Pavel Hajman said in a statement: “The current weak market situation has a significant impact on our business, so we will continue to focus on rescue activities.”
The company benefited from home improvement trends during the pandemic, but demand declined last year as rising inflation hit consumer spending.
Husqvarna said it expects cash flow to remain strong due to low inventory levels across the group.
The company’s shares have fallen 19.6% this year. The stock is due to resume trading at 0700 GMT on Wednesday.
