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Husqvarna announces cost structure improvement plans.

NORDIC BUSINESS REPORT-November 7, 2012-Husqvarna announces cost structure improvement plans(C)2012 M2 COMMUNICATIONS http://www.m2.com

Husqvarna Group AB (STO:HUSQB.ST) announced today that it will implement measures to improve its cost structure, which includes layoffs in several countries, including Sweden.

The company said that the proposed measures include a reduction of approximately 600 employees, of which almost half are in Sweden, mainly in Huskvarna.

These measures are planned to be implemented during the first six months of 2013 after negotiations with the respective unions.

According to the company, cost savings under these efforts will be achieved gradually and full annual effect of around SEK220m is expected to be reached during 2014. For 2013 cost savings are estimated at around SEK160m.

In addition, the costs for implementing these measures are estimated at approximately SEK250m, which will be charged to the operating income for the fourth quarter of 2012.

Further, during 2013, the company will benefit from cost savings of around SEK50m, which relate to savings under measures under a previously announced restructuring, including relocation of manufacturing from Sweden to Poland, which began in 2010.

The Husqvarna Group is a producer of outdoor power products including chainsaws, trimmers, lawn mowers and garden tractors.

(EUR1.00=SEK 8.56)

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Publication:Nordic Business Report
Article Type:Brief article
Date:Nov 7, 2012
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