COPENHAGEN (Reuters) -Sweden’s Husqvarna expects a 5% decline in its third quarter organic sales compared with last year and an operating result around zero due to challenging market conditions and restrained consumer spending, the company said late on Tuesday.
The garden equipment and tools maker, which in July reported a slump of 9% year-on-year in second-quarter sales, is now accelerating its cost savings programs and will outline new measures when it publish its third-quarter earnings on Oct. 23.
“The current market situation is weak and has a substantial effect on our business, thus we continue to focus on our mitigating activities,” CEO Pavel Hajman said in a statement.
The company benefited from the home improvements trend during the pandemic, but saw demand softening last year, as high inflation took a toll on consumer spending.
Cash flow was expected to remain strong, partly driven by reductions in the group’s inventory levels, Husqvarna said.
The company’s share price has fallen by 19.6% year-to-date. Trade in the stock is due to resume at 0700 GMT on Wednesday.
(Reporting by Stine Jacobsen in Copenhagen and Urvi Dugar in BengaluruEditing by Chris Reese and Terje Solsvik)
