Annual Report 2009 - Husqvarna Group

Husqvarna Annual Report 2009 31
Report by the Board of Directors
• Substantially lower demand in most product areas in both
North America and Europe.
• Net sales rose to SEK 34,074m (32,342), but declined by 8%
adjusted for changes in exchange rates and acquisitions.
• Sales for Consumer Products declined by 3% and sales for
Professional Products by 17%, adjusted for changes in
exchange rates and acquisitions.
• Operating income declined to SEK 1,560m (2,361),
corresponding to a margin of 4.6% (7.3).
• Operating income includes restructuring costs in the
amount of SEK 452m (316). Margin was 5.9% (8.3), exclusive
of these costs.
• Apart from restructuring costs, the decline in operating
income referred mainly to lower volumes and a less favorable
mix in terms of products and geographical markets.
• Income for the year was SEK 903m (1,288), or SEK 1.64
(2.81) per share.
• A rights issue of approximately SEK 3 billion was
implemented to strengthen the Group’s balance sheet.
• The net debt/equity ratio at year-end improved to 0.52
(1.54).
• Operating cash flow rose to SEK 3,737m (2,013), as a result
of measures taken to reduce working capital.
• The Group strengthened its market shares in North
America for lawn mowers, garden tractors and leaf blowers.
• A new organization was announced in July, for implementation
as of 1 January 2010.
• The Board of Directors proposes a dividend for 2009 of
SEK 1 per share (0).
• Operating income for Consumer Products declined by 24%
and for Professional Products by 26%, excluding restructuring
costs and adjusted for changes in exchange rates and
acquisitions.
Key figures
SEKm 2009 2008 Change, %
Change adjusted for
currency and acquisitions 1 , %
Net sales 34,074 32,342 5 –8
EBITDA 3,060 3,524 –13 –18
EBITDA margin, % 9.0 10.9 — —
Operating income 1,560 2,361 –34 –26
Operating income, excl.restructuring costs 2,012 2,677 –25 –26
Operating margin, % 4.6 7.3 — —
Operating margin, excl.restructuring costs, % 5.9 8.3 — —
Income after financial items 1,094 1,767 –38 —
Margin, % 3.2 5.5 — —
Income for the period 903 1,288 –30 —
Earnings per share after dilution, SEK 1.64 2.81 2 –42 —
Return on capital employed, % 6.6 10.7 — —
Return on equity, % 7.5 15.8 — —
Net debt/equity ratio, times 0.52 1.54 — —
Capital expenditure 914 1,163 –21 —
Average number of employees 15,030 15,720 –4 —
1) Excluding restructuring costs, acquisitions and adjusted for changes in exchange rates.
2) Earnings per share 2008 have been restated to reflect the rights issue in 2009.