Annual Report 2009 - Husqvarna Group

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16 Husqvarna Annual Report 2009 Consumer Products Gardena’s new battery-driven lawn mowers are easy to maneuver and can mow a medium-size lawn without recharging.
Husqvarna Annual Report 2009 17 Consumer Products Husqvarna has leading market positions for consumer products in both Europe and North America. The position in North America was strengthened during 2009 in several product categories. In Europe the position was improved by a successful extension of the product offering under the Gardena brand. Highlights of 2009 • Substantial drop in demand in all markets due to the recession. • Sales rose slightly in North America as a result of market share gains. • Considerable decline in operating income as a result of lower sales and a less favorable product/country/ customer mix. • Income was also negatively affected by costs for restructuring of production in Sweden and the US, and of the sales organization. Husqvarna is the world’s largest producer of lawn mowers, trimmers, leaf blowers and chainsaws, and is one of the two largest producers of garden tractors. The Group’s global market shares in its major product categories are estimated at 20–40%. Gardena is the European leading brand for irrigation systems and garden tools. The operation in North America accounted for 53% of net sales for this business area in 2009, and Rest of the World for 47%. The market The global market for the type of equipment produced by the Group is estimated at approximately SEK 90 billion, of which North America accounts for approximately two-thirds. Historically, annual growth in volume has been approximately 2%. Demand is driven by the general business cycle as well as trends for private consumption of capital goods for households. Considerable variations in demand can occur year-onyear as well as between markets, as a result of weather conditions and the length of the season. Demand is estimated to have declined in 2009 in both Europe and North America. The market in North America has been contracting steadily over the past five years, particularly for wheeled products. The market features severe competition and price pressure, above all for low-end products. This applies particularly to North America, where the market is highly consolidated and the four largest retail chains account for 70% of sales. Prices for comparable products have declined historically by approximately 1–2% annually, on average. High cost-efficiency and continuous product development are prerequisites for good profitability. Strong brands that are based on successful product development, high quality and sustained marketing normally enable higher profit margins. Such brands include Husqvarna and Gardena. Market trends Increasing interest in garden care has stimulated demand for garden equipment in recent years. The long-term market trend shows a polarization to either simple or more advanced highperformance products. Share of Group net sales Net sales and operating margin Net sales by quarter SEKm % 24,000 12 % 40 North America, 35% 20,000 16,000 10 8 30 Rest of the World, 31% 12,000 8,000 4,000 6 4 2 20 10 0 05 06 07 08 09 Net sales, SEKm Operating margin, %* 0 0 Q1 Q2 Q3 Q4 Net sales, % 4 year average * Excluding restructuring costs.
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Page 3 and 4: Net sales Operating income and marg
Page 5 and 6: Husqvarna Annual Report 2009 1 High
Page 7 and 8: History Husqvarna Annual Report 200
Page 9 and 10: Report by the President Husqvarna A
Page 11 and 12: Strategy Husqvarna Annual Report 20
Page 17 and 18: Financial goals Husqvarna Annual Re
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Page 29 and 30: A new series of zero-turn mowers fo
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Page 33 and 34: The Husqvarna share Husqvarna Annua
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Page 57 and 58: Notes Husqvarna Annual Report 2009
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Notes Husqvarna Annual Report 2009
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Five-year review Husqvarna Annual R
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Quarterly data Husqvarna Annual Rep
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New reporting structure Husqvarna A
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Corporate Governance Husqvarna Annu
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Board of Directors and Auditors Hus
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Sustainable development Husqvarna A
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Factors affecting forward-looking s
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Annual Report 2009 - Husqvarna Group

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