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Husqvarna posts record profit but warns on supply bottlenecks -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Husqvarna’s robotic lawnmower is placed at its docking station, in Stockholm’s Humlegarden (Sweden), July 21, 2018. REUTERS/Anna Ringstrom/File Photo

By Anna Ringstrom

STOCKHOLM /Reuters – Husqvarna, a maker of gardening equipment, posted record profits for Thursday. The company’s locked down customers spent substantial amounts on home projects. But it also indicated that there would be a supply problem in 2021.

On 15% organic growth, the full year operating profit for the largest global manufacturer of lawnmowers and trimming tools rose 57% to 5.75 Billion Crowns ($624 Million). Refinitiv polled analysts to forecast an average 5.66 billion crown profit.

Henric Andersson, CEO of Henric andersson stated in a statement that the “stay-at-home” trend had contributed to positive market positioning in strategic markets such as robotic mowers and battery-powered products.

“We continue to work tirelessly to overcome all challenges in our supply chains, which includes growing our inventories as we prepare for the next season.”

The majority of Swedish business is conducted in the fourth quarter.

The fourth quarter was seasonally poor and losses fell by 86% to 132,000,000 crowns.

The rival of Black & Decker and Honda Motor proposed a dividend of 3.00 crowns per share for 2021, up from 2.40 a year earlier.

($1 = 9.2140 Swedish Crowns

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