Estimation of the Covid-19 Impact on Husqvarna Group's Net S
STOCKHOLM, March 5, 2020 /PRNewswire/ -- Husqvarna Group estimates that the impact on net sales for the first quarter 2020 will be approximately 3 percent (with Q1 2019 as the reference*) due to supply chain disturbances related to the COVID-19 virus outbreak.
The COVID-19 virus outbreak development has high attention within the Husqvarna Group and the company is doing the utmost to secure the health and safety of our employees and minimize any impact on the operations. All of the Group's three production units in China have been up and running since mid-February, and are gradually increasing the capacity. Initiatives taken to minimize the impact on the business include securing components and transportation, as well as utilizing alternative suppliers.
Given the dynamics related to the regions affected, where the situation in China is stabilizing and gradually improving whilst in Europe still somewhat uncertain, it is currently difficult to provide visibility of how long the supply chain impact might remain. However, from what we can see at this stage, there is no impact on customer demand as a consequence of COVID-19.
*Adjusted for exits of the Consumer Brands business
For additional information, please contact
Johan Andersson, Director, Corporate Communications and Investor Relations
+46-702-100-451 or [email protected]
Husqvarna Group is a global leading producer of outdoor power products and innovative solutions for forest, park and garden care. Products include chainsaws, trimmers, robotic lawn mowers and ride-on lawn mowers. The Group is also the European leader in garden watering products and a global leader in cutting equipment and diamond tools for the construction and stone industries. The Group's products and solutions are sold under brands including Husqvarna, Gardena, McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah and Diamant Boart via dealers and retailers to consumers and professionals in more than 100 countries. Net sales in 2019 amounted to SEK 42bn and the Group has around 13,000 employees in 40 countries.
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SOURCE Husqvarna AB