Husqvarna For Sale!!!

Discussion in 'Lawn Mowing' started by Legacy, Feb 23, 2005.

  1. Legacy

    Legacy LawnSite Member
    Posts: 160

    Just saw this last night.....from Bloomberg Financial News.....

    Bloomberg News


    Electrolux to Spin Off Outdoor Business After Profit Falls 37%
    Feb. 15 (Bloomberg) -- Electrolux AB, the world's largest maker of household appliances, will spin off its outdoor-products unit and step up the relocation of production after fourth-quarter net income fell 37 percent.

    Electrolux said it plans to have shifted most manufacturing by 2008 as part of a plan to save 2.5 billion and 3.5 billion kronor a year from 2009. Net income slid to 728 million kronor ($104 million) in the quarter from 1.15 billion kronor a year earlier, the Stockholm-based maker of Frigidaire refrigerators said today in a statement.

    Chief Executive Hans Straaberg is moving production from Western Europe and the U.S. to countries such as Mexico and Hungary where labor is cheaper. Electrolux and rival Whirlpool Corp. are also raising prices as costs for materials such as steel climb.

    ``Consolidation and relocation of production are requirements for achieving long-term competitiveness and profitability,'' Straaberg, 47, said in the statement.

    Electrolux said it will complete the spinoff of the outdoor business no later than mid-2006. The division, which makes Husqvarna chainsaws and cutting tools, had sales of 27 billion kronor last year and about 11,500 employees.
     
  2. beransfixitinc

    beransfixitinc LawnSite Senior Member
    Posts: 592

    Ok, so, I'm confused, when they say outdoor power equipment, are they speaking of mowers also? So, now Craftsman,Poulan,Weedeater, etc are going to be made in countries where they are going to be paying workers less.. which means they'll probably care less, quality nose dives, and soon MTD is back to making the Sears Craftsman brand mowers...

    All the more reason to look at a Snapper or non-AYP mower.
     
  3. Travis Followell

    Travis Followell LawnSite Silver Member
    from KY
    Posts: 2,207

    The way I understood it is they are going to sell their outdoor power equipment division completely, get rid of it. It also said they will move production of appliances from the US and Europe to Mexico and Hungary where labor is cheaper and increase the prices of the appliances. Put more americans out of work for cheaper labor in Mexico all while raising prices. To get back on topic, i'd say MTD will probibly buy the OPE division. There about the only consumer OPE company big enough but Briggs could also be a player as well.
     
  4. beransfixitinc

    beransfixitinc LawnSite Senior Member
    Posts: 592

    As it is now, you only really have (that I know of) MTD,AYP/Electrolux, and Briggs/Murray in the low end priced stuff.... not counting things like Snapper.. which is Briggs based anyway, so...
     

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