Husqvarna moves some battery tool output from Europe to Asia after quarterly loss

what happened

Sweden's Husqvarna said on Wednesday that it will relocate production of several cordless handheld models from European plants to Asian sites. At the same time, its operating result for the third quarter came in negative, Reuters reports.

The group had earlier moved some output from China to its European factories to soften the effect of US import tariffs, as part of a broader rework of its supply chains. The new transfer will use its own Asian facilities alongside outside contract manufacturers, with the aim of lowering costs and sharpening competitiveness. Husqvarna did not say which European plants are affected, how many jobs are at stake, or when the move will happen.

Organic sales fell 5% in the quarter, held back by soft demand in Europe and widespread drought. Its robotic mowers underperformed owing to rival products and swollen dealer inventories in Europe. Excluding items affecting comparability, the operating loss reached 246 million Swedish crowns ($24.8 million), against a profit of 140 million crowns a year earlier. The company plans targeted price increases and further logistics and sourcing measures to absorb higher raw material and freight costs.

why it matters

For investors, the news highlights continued pressure on the European garden equipment market, where demand and dealer stocks remain weak. Relocating production and raising prices are management's attempt to rebuild margins, yet Husqvarna's results still depend on weather and retailer restocking. Figures are converted at roughly 9.91 crowns to the dollar.

market impact

Husqvarna: quarterly loss and rising costs weigh on the stock and on the garden equipment sector

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