HUSKVARNA, Sweden , July 15, 2022 /PRNewswire/ --
A quarter marked by continued supply chain constraints
Second quarter 2022
Net sales increased by 8% to SEK 15,792m (14,614). The organic growth was -7%, changes in exchange rates contributed with 8% and acquisitions with 8% (growth numbers are rounded).
Operating income was SEK 2,065m (2,659) and the operating margin was 13.1% (18.2). Excluding items affecting comparability, operating income was SEK 2,075m (2,645) and the operating margin was 13.1% (18.1).
Items affecting comparability amounted to SEK -10m (14), and related to restructuring costs in Russia , see page 19.
Earnings per share before dilution amounted to SEK 2.48 (3.49) and earnings per share after dilution amounted to SEK 2.47 (3.48).
Cash flow from operations and investments was SEK 699m (3,174), the decrease was mainly related to lower operating profit and higher inventories. Direct operating cash flow was SEK 1,803m (2,875).
Operating working capital / net sales amounted to 25.7% (21.1).
Husqvarna Group acquired Heger, a leading company specialized in professional diamond tools for the European construction market.
Net sales increased by 10% to SEK 31,477m (28,644). The organic growth was -5%, changes in exchange rates contributed with 7% and acquisitions with 8%.
Operating income was SEK 4,224m (4,952) and the operating margin was 13.4% (17.3). Excluding items affecting comparability, operating income was SEK 4,265m (4,938) and the operating margin was 13.5% (17.2).
Items affecting comparability amounted to a net of SEK -41m (14), see page 19.
Earnings per share before dilution amounted to SEK 5.35 (6.39) and earnings per share after dilution amounted to SEK 5.34 (6.37).
Cash flow from operations and investments was SEK -520m (4,723). Direct operating cash flow was SEK 351m (3,018).
A quarter marked by continued supply chain constraints
"The overall demand for Husqvarna Group's products and services was good during the second quarter. Sales of professional products in the Husqvarna Forest & Garden Division, as well as sales in the Husqvarna Construction Division were good. For ride-on mowers, the supply chain situation improved during the quarter and sales grew strongly. However, for robotic mowers to the residential market, supply chain constraints were exacerbated due to the COVID-related lockdowns in China . This affected our ability to meet customers' demand and sales decreased significantly. Organic growth for the Group was -7% (14) and the equivalent growth excluding robotic mowers was -1% for the second quarter.
Organic growth amounted to -8% for the Husqvarna Forest & Garden Division and -10% for the Gardena Division in the second quarter. Sales for both divisions were adversely affected by the supply situation in robotics. In the Gardena Division, sales of watering products declined as a result of a delayed season start due to cold weather in combination with our retail partners in the European core markets started the year with relatively high inventory levels. The Husqvarna Construction Division achieved organic growth of 2%, in part driven by strong sales of power cutters.
Operating profit for the second quarter amounted to SEK 2,075m (2,645), excluding items affecting comparability. Price increases continued to offset increased costs for raw materials and logistics, while lower volumes impacted the result. The product mix was unfavorable with lower volumes of robotic mowers and watering solutions and higher volumes of ride-on mowers.
Direct operating cash flow amounted to SEK 1,803m (2,875) for the second quarter. The decline was related to lower operating profit as well as higher inventories of components in general, semi-finished products and goods in transit, all stemming from the unpredictable component supply environment. Our ambition is to reduce the inventory levels for the remainder of the year. Although, this will also be dependent on how the supply chain situation develops.
Focus on sustainable value creation
Our vibrant brands are well positioned in attractive segments and our unique innovation capability enables us to create value and deliver on our Sustainovate targets. Examples of progress on our sustainable value creation strategy are the strong growth of robotic mowers in the professional segment including the successful launch of CEORA™, the robotic mower that provides cost-efficient commercial turf care management. The Husqvarna Forest & Garden Division has also joined the Power for All Alliance we co-founded with Bosch, for consumer 18V battery-powered products, to complement its 36V offering. In the Husqvarna Construction Division, we have launched new ranges of dust extractors, both delivering improved construction site environments as well as a significant improvement in energy efficiency for our end-customers. We are delivering on our CO₂ emission reduction target, achieving a reduction across the value chain (scope 1, 2 and 3) of -30% compared with our 2025 target of -35%. This is despite an unfavorable product mix during the quarter.
In summary, the quarter was marked by continued disturbances in the supply chain. We are doing our utmost to support our customers for the remainder of the season, however the global supply chain situation is still fluid and unpredictable. We have a dedicated and flexible organization that, in parallel with the implementation of short-term measures, is executing on our strategy and our long-term value creation."
Henric Andersson , President and CEO
Webcast presentation and telephone conference
A webcast presentation of the Q2 report, hosted by Henric Andersson , President & CEO, and Terry Burke , CFO, will be held at 10:00 CET on July 15, 2022 .
To view the presentation, please use the link: https://husqvarna-group.creo.se/220715
The dial-in to the telephone conference (in order to ask questions): +46 (0) 8 5051 0031 (Sweden ) or +44 207 107 06 13 (UK).
October 21 - Interim report for January-September
Terry Burke , CFO and Executive Vice President, Finance, IR & Communication, +46 8 738 90 00
Johan Andersson , Vice President, Investor Relations, +46 702 100 451
Husqvarna AB (publ), P.O. Box 7454, SE-103 92 Stockholm
NASDAQ OMX Stockholm: HUSQ A, HUSQ B
This report contains insider information that Husqvarna AB is required to disclose under the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact person set out above, at 07.30 CET on July 15, 2022 .
This report contains forward-looking statements in the sense referred to in the American Private Securities Litigation Reform Act of 1995. Such statements comprise, among other things, financial goals, goals of future business and financial plans. These statements are based on present expectations and are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, a material reduction in sales by important distributors, success in developing new products and in marketing, outcome of product responsibility litigation, progress in terms of reaching the goals set for productivity and efficient use of capital, successful identification of growth opportunities and acquisition objects, integration of these into the existing business and successful achievement of goals for making the supply chain more efficient.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/husqvarna-group/r/interim-report-january---june-2022,c3601733
The following files are available for download:
https://mb.cision.com/Main/996/3601733/1604724.pdf
Interim report Q2 2022 Husqvarna Group (PDF)
https://news.cision.com/husqvarna-group/i/henric-andersson-president---ceo,c3070993
Henric Andersson President & CEO
View original content:https://www.prnewswire.com/news-releases/husqvarna-group-interim-report-january---june-2022-301587298.html
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is joining its tech peers in a stock split. The trillion-dollar tech giant, which is the parent company of Google, plans to do a 20:1 stock split on Friday, July 15. If you're aiming to buy Alphabet before the stock split, the clock is ticking.
Rogers knows how to survive — and thrive — in turbulent times.
Inflation is running hot at 9%. Suze likes this asset to beat it.
For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has stood head and shoulders above most money managers. Since taking the reins of Berkshire in 1965, Buffett has overseen the creation of more than $610 billion in value for shareholders, as well as led the company's Class A shares (BRK.A) to an aggregate return in excess of 3,600,000%. Given the Oracle of Omaha's incredible track record, investors tend to pay close attention to what he and his investing team are buying and selling.
The market is unstable. Your portfolio doesn’t need to be.
Russia is positioning itself to engage in 'expropriation blackmail,' according to Mark Dixon, founder of the Moral Rating Agency.
Mining stocks could capitulate given waning demand for industrial metals
Every investor wants to see his stocks pay off – or he wouldn’t be in the markets. But finding the right investment, the ‘one’ that will bring profits, can sometimes be challenging, especially in today's market conditions. The two simplest courses of action an investor can take to ensure solid returns are based on common sense. The first is to buy low and sell high. That is, find a cheap stock with sound fundamentals and good prospects for growth – and buy in to take advantage of the growth pote
Yahoo Finance Live anchors discuss quarterly earnings for UnitedHealth.
Alphabet stock will undergo a 20-for-1 stock split on July 18. Here's how to trade the stock into the event.
(Bloomberg) -- Carson Block was on a Delta flight to New York when he felt blood pooling on his seat.Most Read from BloombergIvana Trump, First Wife of Former President, Dies At 73Chinese Homebuyers Across 22 Cities Refuse to Pay MortgagesBiden to Leave Mideast With No Immediate Announcement on OilChina Growth Slows Sharply, Putting GDP Target Out of ReachIt’s a tale the famous, filter-free founder of trading firm Muddy Waters Capital launches into to make a point about misdoings among short sel
Citigroup's latest earnings beat means that it could be priced fairly for once
Yahoo Finance's Rachelle Akuffo discusses why Pinterest stock is popping on Thursday.
Yahoo Finance Live anchors discuss quarterly earnings for Wells Fargo and Citigroup.
Utility stocks are among the safest stocks in the entire stock market during a recession, and many agree we're either in one, or headed there. Utilities also provide stable dividends, even when the economy enters a downturn. As a result, these 3 high dividend stocks from the utility sector could be safe havens during a prolonged downturn.
U.S. stocks rallied Friday to cap a four-day losing streak on Wall Street. Sentiment was buoyed by better-than-expected retail sales data and a strong earnings report from Citigroup.
Alphabet's stock split will take place after market close on July 15, and you'll notice extra shares in your account if you bought Alphabet before the deadline.
Yahoo Finance reporter Ines Ferre looks at how the stock market closed out its week and which sectors stood out along the way.
Your dollars are depreciating every single day so what are the best ways to invest cash during inflation and still have liquidity?
(Bloomberg) -- As if another inflation shock and earnings drama at big banks weren’t enough for stock investors, Friday brings a critical moment where many option traders must decide their next move on hedging. Most Read from BloombergIvana Trump, First Wife of Former President, Dies At 73Chinese Homebuyers Across 22 Cities Refuse to Pay MortgagesUS Inflation Quickens to 9.1%, Amping Up Fed Pressure to Go BigStocks Bounce Off Lows as Traders Temper Fed Bets: Markets WrapFed Could Weigh Historic