Stockholm, Sweden, August 29, 2011 —Husqvarna AB (HUSQB) Chief Executive Officer Magnus Yngen, who took a medical leave of absence in June, resigned and the company said it's looking for a new CEO.
Yngen and the board of the world's largest garden power-equipment company "agreed that Husqvarna is better served by a new CEO and president" following his leave of absence, the Huskvarna, Sweden-based company said in a statement.
Hans Linnarson, who took over when Yngen left in June, will continue to serve as acting CEO until a permanent replacement is found, the company said.
The stock rose as much as 4.1 percent and was up 4 percent at 31.25 kronor as of 3:13 p.m. in Stockholm trading. Husqvarna has plunged 44 percent this year as production problems at its biggest plant in North America dragged down the company's sales and operating profit.
The North America production issue "is still on the agenda but appears to be fairly under control now," said Carl Holmquist, a Danske Bank analyst in Stockholm who recommends investors buy Husqvarna shares. The company's biggest challenges include moving production to low-cost countries, he said.
Yngen also resigned from Husqvarna's board.