Annual Report 2009 - Husqvarna Group

24 Husqvarna Annual Report 2009 Professional Products
Competitors
Husqvarna’s most important competitors in the professional
market segment are the German company Stihl and the US
companies John Deere and Toro. Stihl competes primarily
within petrol-powered handheld products such as chainsaws
and trimmers, while John Deere and Toro compete mainly
within professional equipment for lawn and garden.
The most important competitors within equipment for the
construction industry are Hilti, which is based in Liechtenstein,
Tyrolit in Austria, Saint-Gobain and Wheelabrator in France,
and Stihl in Germany for power cutters.
John Deere, Toro and Saint-Gobain are listed companies.
Seasonal patterns
Sales of lawn and garden equipment refer mainly to the first
half of the year, while most chainsaws are sold during the second
half. Sales of equipment and diamond tools for the construction
industry are spread more evenly over the year, see
graph on page 23.
Forestry
In 2009 forestry equipment accounted for approximately 44%
of sales of Professional Products.
Husqvarna manufactures a wide range of premium chainsaws
for various geographical areas and climates. The product
range also includes clearing saws and accessories such as
chains, blades, protective clothing and tools.
These products are developed for users who demand high
levels of performance, durability and ergonomics. The product
range satisfies most needs for forest management and tree care.
Brands and market position
Professional forestry products are sold mainly under the
Husqvarna, Jonsered and Zenoah brands, with Husqvarna
accounting for a majority share of sales. The Husqvarna brand
has had a strong global position for many years, particularly for
chainsaws and other handheld products. Jonsered has a similar
position, and complements Husqvarna in specific markets.
Zenoah has a strong market position for chainsaws in Japan as
well as for other handheld products such as clearing saws, trimmers
and leaf blowers. Zenoah products are also sold in the US
under the RedMax brand.
Customers and distribution
The majority of sales are to servicing dealers through the
Group’s own sales companies. In smaller markets, products are
sold through distributors. The Group is represented in over
100 countries by a total of more than 25,000 dealers.
Lawn and Garden
The Lawn and Garden product area accounted for approximately
33% of sales of Professional Products in 2009.
The product offering includes riders, walk-behind lawn mowers
and zero-turn mowers, as well as special products for turf
care. It also includes handheld equipment such as trimmers,
hedge trimmers and leaf blowers.
Products sold by Lawn and Garden must meet end-user
demands for performance, durability and comfort. An effective
organization for technical support and service is also essential
for success in this area, where larger riders are priced at more
than SEK 100,000.
Key data 2009 2008 2007 2006 2005*
Net sales, SEKm 11,402 12,493 12,663 11,067 10,408
Share of Group sales, % 33.5 38.6 38.0 37.6 36.2
Operating income excl. restructuring costs, SEKm 1,457 1,822 2,123 1,875 1,739
Operating margin excl. restructuring costs, % 12.8 14.6 16.8 16.9 16.7
Net assets, SEKm 6,219 7,875 6,790 4,714 4,626
Capital expenditure, SEKm 377 475 343 366 400
Average number of employees 6,100 7,040 7,242 5,661 5,627
* 2005 according to Electrolux reporting for the Outdoor Products segment.