Husqvarna has reported a bigger than expected rise in third quarter earnings, helped, its says by cost savings and higher sales volumes, and improvements across all business areas.

Husqvarna is in the midst of a drive to boost its operating margin to 10 percent in 2016 and turn the corner on problems in its North American business that was severely hit by rising cost for deliveries to retailers and a move of its production.

Operating profit at Husqvarna, the world's biggest maker of outdoor power tools such as lawn mowers and trimmers, rose to 301 million Swedish crowns (£25.8 million) from a year-ago 206 million to top a forecast of 279 million in a Reuters poll of analysts.

The company said it expected demand to remain stable in the fourth quarter compared to a year ago.

Husqvarna said its operating margin rose to 4.4 percent from 3.2 percent a year ago. Sales in the quarter rose to 6.8 billion crowns compared to expectations of 6.5 billion in a Reuters poll.

Park and garden products are mainly used during spring and summer, which in the northern hemisphere means sales normally peak in the second quarter. The first half of the year accounts for around two thirds of Husqvarna's annual sales. The European and the North American markets each represent more than 40 percent of total sales.

In a separate statement, Husqvarna said its Chief Financial Officer, Ulf Liljedahl, was leaving the company to take up a position as CEO of Volito Group.