Consolidation of production in North America


Consolidation of production in North America

Husqvarna has previously communicated its intention to implement a
number of structural changes in order to improve efficiency and reduce
costs. In line with these changes, Husqvarna has decided to close the
plant in Beatrice, Nebraska, and transfer production to the plant in
Orangeburg, South Carolina.

The closure and transfer will be implemented in the second half of 2010.
The cost for the measures is estimated at approximately SEK 110m,
whereof cash items amount to approximately SEK 70m, which will be
charged to income in the second quarter of 2010. Annual savings from the
measures are expected to amount to approximately SEK 40m and will be
generated gradually from the start of 2011 with full effect as of 2012. 
The Beatrice plant assembles mainly Zero Turn Radius lawn mowers. The
factory in Orangeburg manufactures similar products including riding
garden tractors and tillers. 
Together with an earlier announcement to close a factory in Greece,
operating income in the second quarter of 2010 will be charged with
restructuring costs totaling SEK 160m. The total annual savings from the
measures are estimated at approximately SEK 60m and will be generated
gradually from the start of 2011 with full effect as of 2012.

For additional information, please contact
Boel Sundvall, SVP Corporate Communications & IR, +46 8 738 7018
Tobias Norrby, Investor relations manager, +46 8 738 8335
Husqvarna Press Hotline at +46 8 738 7080 or press@husqvarna.se

Attachments

05272472.pdf