Swedish manufacturer Husqvarna posted 2.36 million SEK (about U.S. $263,740) in operating income, a 34 percent drop compared with 3.56 million SEK in 2007. Net sales for the year declined 3 percent from SEK 33.3 million in 2007 to SEK 32.3 million (about U.S. $3.6 million) in 2008.
“Market conditions deteriorated further during the fourth quarter,” said Magnus Yngen, president and CEO. “Retailers were more cautious than last year about building up inventories for the coming garden season. Apart from the negative impact from lower sales and production volumes, we took a charge of SEK 316 million (about U.S. $35 million) for the full year related to the personnel cutbacks that are being implemented to reduce costs in the group, of which SEK 301 million were in the fourth quarter. The operating margin for the full year was 7.3 percent, including the above-mentioned charge."