By Jesus Calero Feb 4 (Reuters) - Sweden's Husqvarna reported a larger-than-expected fourth-quarter operating loss on Wednesday, hit by weak North American demand and higher tariff costs, sending its
Husqvarna Shares Plunge Amid Increased Losses and Weak Demand in North America
Husqvarna's Financial Struggles
By Jesus Calero
Feb 4 (Reuters) - Sweden's Husqvarna reported a larger-than-expected fourth-quarter operating loss on Wednesday, hit by weak North American demand and higher tariff costs, sending its shares down 9.4% to their lowest level in five years.
Husqvarna's earnings before interest and tax (EBIT) came in at a loss of 837 million Swedish crowns ($94 million)in the quarter, lagging analysts' average forecast for a loss of 810 million crowns, according to data compiled by LSEG.
Impact of Tariffs and Demand
The results come after Husqvarna lowered its financial ambitions, with investors now watching demand and margins ahead of the next sales season.
Job Cuts and Strategic Changes
Jefferies said Husqvarna's results were weaker than expected, with North America remaining the main source of pressure, although robotic mower sales held up.
In North America, residential sales fell as tariffs and currency swings pushed prices higher, while demand for handheld and wheeled products remained subdued amid cautious consumer spending.
CEO Glen Instone told Reuters demand had "stabilised at a lower level," with customers showing delayed purchase behaviour.
"Trade tariffs and ongoing geopolitical tensions dampened consumer spending, and we saw varied developments across regions and product categories," the company said in a statement.
Competition is also intensifying in the company's robotic lawnmower business, where cheaper Chinese rivals are gaining ground and sales are shifting toward lower-margin models.
Roughly two-thirds of Husqvarna's U.S. sales depend on imported products, prompting the group to rethink its supply chain.
Instone said the company had already passed some higher costs on to customers and would need to continue raising prices if tariffs persist.
The company has cut more than 1,700 jobs as part of cost-saving efforts while increasing investment in robotic and battery-powered equipment.
Separately, Husqvarna said its CFO Terry Burke and the head of its construction division will step down, and that it has begun searching for successors.
($1 = 8.8864 Swedish crowns)
(Reporting by Jesus Calero; Editing by Matt Scuffham)
