HUSQVARNA GROUP ANNOUNCES ADDITIONAL EFFICIENCY INITIATIVES
Dec. 2, 2019
Source: Husqvarna Group news release
Stockholm -- To further increase profitability and enable continued strategic investments in segments with high growth potential, while exiting further unprofitable business, Husqvarna Group announced additional efficiency initiatives.
The additional initiatives are expected to deliver annual cost savings of SEK 150m, of which the majority will be realized in 2020 and the remainder in 2021. Restructuring costs for the initiatives are expected to amount to about SEK 200m and will be charged to the result in the fourth quarter of 2019.
"We have identified measures to lower our cost base and increase efficiency of our operations. The activities will mainly be carried out within the Husqvarna Division, says Kai Wärn, President and CEO of Husqvarna Group.
"Since 2018, we have focused on growing our profitable growth segments, while exiting unprofitable business. The associated restructuring savings of around SEK 250m have by and large already been achieved this year (in 2019). In 2020, we plan to exit further unprofitable business, representing net sales of about SEK 2.2bn.
These activities will support delivering on our strategic growth and profitability improvement trajectory as presented at the Capital Markets Day 2019"