Husqvarna Institutes Hiring Freeze

As the company enters its historically weaker fourth quarter, the uncertain economic environment leaves executives uneasy.

Husqvarna says it has been negatively affected by the slowdown in global consumer demand and the uncertain economic environment in combination with unfavorable weather. Due to the demand situation, a hiring freeze has been implemented for the entire Group until further notice. The fourth quarter (October through December), which normally represents a small volume for the company, is expected to continue to suffer from poor economic conditions.

Total Group net sales declined in the second quarter (April through June). Sales for the third quarter (July through September) are expected to be 5% lower than the same timeframe one year ago.

Prepared for the 2012 season in North America

Extensive efforts to eliminate the supply chain disturbances in the Orangeburg, SC, production facility have progressed successfully. In order to ensure successful delivery of committed volumes, the ramp-up of pre-season production has started earlier than previous year.

The Group's product range listings with major retailers in the North American market for 2012, although not yet finalized, are projected to be unchanged versus 2011, however with a somewhat new balance among the different retailers.

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