Husqvarna AB: annual 2006

Net sales

Net sales in 2006 rose by 2% to SEK 29,402m as against SEK28,768m in the previous year. After adjustment for exchange rate ?uctuations, net sales also rose by 2%.

The low growth in sales as compared with the previous year is mainly explained by lower demand and a decline in sales of consumer garden products. Also, sales of chainsaws were par-ticularly strong in 2005 due to hurricanes in the US and effects of storms in Scandinavia.

In terms of business areas, net sales for Consumer Products were largely unchanged from the previous year and amounted to SEK 18,335m (18,360). Net sales for Professional Products rose by 6% SEK 11,067m (10,408).

Operating income

Operating income in 2006 rose by 7% to SEK 3,121m (2,927m) and operating margin improved to 10.6% (10.2). After adjustment for exchange rate fluctuations, operating income rose by 7%.

The improvement in operating income refers mainly to Profes-sional Products, where Forestry, as well as Commercial Lawn and garden and Construction, reported higher operating income. Consumer Products also showed an improvement, mainly as a result of an improved mix in terms of both products and geo-graphical markets, and greater cost ef?ciency.

Operating income for Consumer Products improved by 6% to SEK 1,415m (1,332), corresponding to a margin of 7.7% (7.3). Operating income for Professional Products rose by 8% to SEK1,875m (1,739), corresponding to a margin of 16.9% (16.7).

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April 2007

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