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Sweden's Husqvarna sees potential negative impact from supplier dispute

·1-min read

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 (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)

(Reporting by Helena Soderpalm; Editing by Simon Johnson)