HUSQVARNA WARN INCOME WILL BE HIT As it cuts ties with a major U.S retailer
Husqvarna Group issued a statement this week which said it expects net sales in its Consumer Brands Division to take a 1 billion Swedish crown ($123 million) hit next year as it cuts back business with a major U.S. client.
The statement said the company was reducing the volume of business with one of its biggest U.S. retail customers, "following the strategy to focus resources on accounts with more attractive opportunities".
Husqvarna Consumer Brands Division includes McCulloch, Flymo and Weed Eater
The statement went on to say, "The Division has started to adjust capacity and other measures to mitigate short-term negative financial effects."
Kai Wärn, President and CEO of Husqvarna Group was quoted as saying, "We are committed to a strong, future-oriented Consumer Brands Division, and this means we need to take decisions that are painful in the short term."
The statement did not make it clear who the US retailer they refer to is, or offer any further eleboration as to why they are cutting ties with them.
They did go on to say that in 2018, the Consumer Brands Division will focus more resources on battery-powered products and robotic lawn mowers under several different brands.
Launches will include a refreshed Weed Eater brand with a new line of interchangeable tools and a full line of 58-volt battery-powered handheld products under the Poulan Pro and Jonsered brands.
“We are developing opportunities in battery products and robotic mowers,” said Jeff Hohler, President Consumer Brands Division, “and while the decision to reduce volume may be a near term setback, we are confident that we will emerge stronger as a Division in the mid to longer term.”