Husqvarna Group will dissolve its consumer brands division into the Husqvarna and Gardena divisions.
“Exiting noncore segments and brands is a decisive step to reduce complexity in the group which will enable us to put even stronger focus on our high-margin business in Husqvarna and Gardena,” said Kai Wärn, president and CEO of Husqvarna Group.
Husqvarna Group will gradually exit from low price point product segments and brands, particularly in gas-powered walk-behind lawnmowers and garden tractors. The changes will be realized in two steps, and customer commitments for the 2019 season will be honored. The second step for 2020 is under review.
The North American operations of the consumer brands division will be folded into the Husqvarna Division, and the European and Asian operations will fold into the Gardena Division. Such changes will start immediately and will be fully implemented by year-end. Accordingly, the external financial segment reporting will be changed as of Jan. 1.
“We will focus our remaining consumer forest and garden operations in North America to areas where we have proven to bring customer value, such as in handheld products, premium garden tractors, zero-turn lawnmowers and particularly robotic lawnmowers,” Wärn said. “The reorganization will facilitate reallocation of resources toward these offerings that have greatest potential for growth and profitability.”
Additional information and details on the outcome of the review are expected to be communicated on Oct. 20, according to the company.
The construction division is not affected by the changes.
