Husqvarna AB on Tuesday reported a rise in third-quarter operating profit and announced the closure of a Swedish factory, a move its new chief executive said accelerates a transition to a more "asset-light" business model.
The Swedish power-tool maker said operating income for the quarter rose to 141 million Swedish kronor from 52 million kronor a year earlier, while net sales fell 5% to 9.2 billion kronor.
Organic sales were flat, as strong growth in its professional segment, including robotic mowers, was offset by weaker demand for residential products, particularly in North America, the company said.
The results are the first under new Chief Executive Glen Instone, who took the helm in August and is preparing to unveil a new long-term strategy in December.
As part of the new focus, Husqvarna will close a facility in Brastad, Sweden, that manufactures components for petrol-powered handheld products and will instead source them externally.
"By shifting to externally sourced components for this segment, we are accelerating our transition toward a more asset-light business model," Mr. Instone said in a statement.
The company also reduced its net debt to 9.9 billion kronor from 12.8 billion kronor a year ago.
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Husqvarna AB said Tuesday it will close a factory in Sweden and cut 84 jobs, the latest move by its new chief executive to streamline operations and improve profitability.
Swedish power-tool maker Husqvarna AB said it has appointed Glen Instone as its new chief executive, replacing Pavel Hajman ahead of a planned strategy update.
Swedish power-tool maker Husqvarna AB said Thursday it has appointed Glen Instone as its new chief executive, replacing Pavel Hajman ahead of a planned strategy update later this year.