STOCKHOLM, July 15 (Reuters) – Sweden’s Husqvarna (HUSQb.ST) reported on Friday a drop in second-quarter operating profit as supply chain constraints for robotic lawn mowers in particular meant it could not fully meet demand.
Operating profit at the world’s biggest maker of gardening power tools fell 22% from a year-earlier to 2.07 billion crowns ($196 million), on a 7% sales drop before acquisitions. Four analysts polled by Refinitiv had on average forecast a 2.08 billion crown profit.
The group, whose products range from ride-on and robotic lawn mowers to irrigation systems and chainsaws, last month warned sales would lag market expectations in the quarter as continued component supply shortage held back production. read more
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“The quarter was marked by continued disturbances in the supply chain,” Chief Executive Henric Andersson said in a statement.
“We are doing our utmost to support our customers for the remainder of the season, however the global supply chain situation is still fluid and unpredictable,” he added.
He said that while lower volumes weighed on profit, price increases continued to offset increased costs for raw materials and logistics.
($1 = 10.5729 Swedish crowns)
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Reporting by Anna Ringstrom, editing by Stine Jacobsen
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