Husqvarna AB: Interim Report January - June 2019.

STOCKHOLM: Kai Warn, President and CEO: "We delivered a good performance during the second quarter. All divisions improved operating income, which for the Group increased by 10% to SEK 2,125m (1,925). Restructuring activities and efficiency improvements, as well as price increases were executed. Cost increases from tariffs and raw materials were balanced by positive currency effects. The improved operating result was despite a slow start of the lawn and garden season. Net sales for the Group decreased by 7% in the second quarter, adjusted for changes in exchange rates, whereof 4 percentage points were related to the exit of the Consumer Brands business.

The strong first quarter with high sell-in volumes followed by a slow start of the lawn and garden sell-out season in the second quarter resulted in lower net sales within the Husqvarna Division. However, operating income for the division increased by 5%, driven by price increases as well as continued efficiency and restructuring savings.

The Gardena Division had yet another solid quarter as retailers have been conscious to fully stock-up after the strong and extended season of last year. Operating income developed well due to strong product mix as well as efficiency and restructuring savings, and exceeded last year's high reference.

The Construction Division delivered growth in the quarter, driven by a continued strong development in Europe. This growth combined with efficiency savings and price increases supported an increased operating income.

Since we initiated our...