Sweden’s Husqvarna sees potential negative impact from supplier dispute By Reuters
STOCKHOLM (Reuters) – Gardening power tools group Husqvarna warned on Tuesday that it could potentially lose top line sales of up to around 2 billion crowns ($230.7 million) next year, due to a supplier dispute.
The Swedish firm said U.S-based Briggs & Stratton (NYSE:) (B&S) had stated that it would only deliver “a very small portion” of the ride-on mower engines that Husqvarna had ordered ahead of the 2022 season.
Husqvarna added that it had filed a lawsuit in SouthCarolina to compel B&S to deliver all the engines covered by its orders.
“In a worst case scenario, the lack of engine supply could result in a loss of top line sales of up to approximately SEK 2 billion, mainly in 2022 with limited impact in Q4 2021,” Husqvarna said in a statement.
It added however that there could be limited or no impact, and that it was optimistic of a satisfactory outcome from the legal proceedings.
Husqvarna, which said it was too early to estimate an earnings impact, added that it would provide an update in conjunction with its third-quarter report due on October 20.
($1 = 8.6684 Swedish crowns)
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.