Briggs & Stratton has informed Husqvarna Group that they will only deliver a very small portion of the engines for ride-on mowers that Husqvarna Group had ordered in advance of the 2022 season, mainly for North America.
According to a news release issued by Husqvarna, the company’s ability to secure an alternative supply of engines for the 2022 season is extremely limited. Therefore, to protect its customers and operations, Husqvarna Group filed a lawsuit in South Carolina to compel Briggs & Stratton to deliver all engines covered by its orders.
In a worst-case scenario, the lack of engine supply could result in a loss of top line sales of up to approximately SEK 2 bn, mainly in 2022 with limited impact in Q4 2021. Given the early stage of these proceedings, and range of possible outcomes, it is too early to estimate the likely net EBIT impact of this supply dispute. It is, however, noteworthy that the affected product category has a lower profitability than the Group average.
Husqvarna Group will provide an update on the issue in conjunction with the Q3 interim report, which will be published on October 20.
