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Sweden’s Husqvarna sees potential negative impact from supplier dispute By Reuters

by Mike Robinson

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© Reuters.

STOCKHOLM – Husqvarna, a leading manufacturer of garden tools and power tools, warned that it may lose up to 2 billion crowns (or $230.7 million) in top sales next year due to a supplier dispute.

The Swedish firm said U.S-based Briggs & Stratton (NYSE:) (B&S) had stated that it would only deliver “a very small portion” of the ride-on mower engines that Husqvarna had ordered ahead of the 2022 season.

Husqvarna added that it had filed a lawsuit in SouthCarolina to compel B&S to deliver all the engines covered by its orders.

Husqvarna released a statement saying that in the worst-case scenario, engine shortages could cause a drop in top line sales, which would be approximately SEK 220 million, but with limited effect in Q4 2021.

The company stated however that there might be a limited impact or none and was confident of getting a favorable outcome in the legal proceedings.

Husqvarna stated that estimates of earnings impact were premature and it will provide updates in connection with its third quarter report on October 20.

($1 = 8.6684 Swedish crowns)

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